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Petrap. corpstock, Other - Page 2 5. Which of the following is not a goal of financial reporting? 2. To provide information that is useful
Petrap. corpstock, Other - Page 2 5. Which of the following is not a goal of financial reporting? 2. To provide information that is useful to those making investment decisions b. To provide information that is useful to those making credit c. To provide information that is useful in understanding everything about the company d. To provide information that identifies changes in resources and claims 6. Information that relates to a firm's solvency is used to ansess the firm's ability to a. convert assets to canh b. pay its debts. c. collect its receivables on time. d. prepare income tax information. 7. If accounting information has predictive value, it is useful in making predictions about a. future IRS audits. b. new accounting principles. c. foreign currency exchange rates. d. the outcomes of past, present, and future events of a company. 8. The assumption that states that the activities of each company be kept separate from the activities of its owners and all other companies is the a. economic entity assumption. b. going concern assumption. c. monetary unit assumption. d. time period assumption. 9. The going concern assumption assumes that the business a. will be liquidated in the near future. b. will be purchased by another business. c. is in a growth industry. d. will continue in operation long enough to carry out its existing objectives and commitments. 10. The revenue recognition principle dictates that revenue should be recognized in the accounting period in which it is a. collected. b. earned. c. most likely to be collected d. earned and collected. 11. A hybrid form of business organization with certain features like a corporation is a (n) a. limited liability partnership. b. limited liability company. c. "S" corporation. d. sub-chapter "S" corporation
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