If stockholder want to know how money flowed into and out of the company what financial statement would they use? a. income statement b. statement of cash flow c. Balance sheet d. statement of retained earnings 17. If an investor can use accounting information for two different companies to evaluate the type and amount of expenses the information is said to have quality of; a. comparability, b. consistency, c. neutrality, d. materiality. 18. Scott Brother Inc follow the qualitative characteristic of consistency. This means that: a. for expense scott users the same account titles as used its competitors. b. Scott has elected certain accounting principles that can never be changed. c. Scott applies the same accounting methods each period. d. Scott applies the same accounting principal as its competitors. 19. Information that is material means that an error in recording the dollar amount of a transaction would: a. likely affect the judgment of someone relying on the financial statements. b. not affect the decisions of financial statement users. c. not impact a business decision of a creditor. d. result in the overstatement of assets or income. 20. An accountant is uncertain about the best estimate of an amount for a business transaction. If there are two possible amounts that could be recorded, the amount least likely to overstate assets and earnings is selected. Which of the following qualities is characterized by this action? a. Comparability b. Conservatism c. Materiality d. Neutrality 21. Which of the following best describes the term "current assets"? a. The amount of total profits earned by a business since it began operations plus all other resources. b. The amount of claim that the owners have in the business in the current year. c. Assets expected to be converted into cash within one year or one. c. The cumulative profits earned by a business less any dividends distributed in the current period