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Please select or highlight the correct answer for each of the following questions: Financial statements provide information about business activities to decision makers. True /
Please select or highlight the correct answer for each of the following questions:
Financial statements provide information about business activities to decision makers. TrueFalse
The primary objective of financial reporting is to provide information:
a regarding the cash flows of the business
b useful for making investment decisions and for assessing management's stewardship.
c to the federal government
d about the profitability of the business
Audits conducted by external accountants express an opinion:
a that gives investors' confidence their investment is not at risk.
b that evaluates the effectiveness of management.
c that taxing authorities use to ensure that the correct amount of tax owing has been calculated.
d on whether the financial statements fairly reflect the economic events that occurred during the accounting period.
Rules of professional conduct for accountants should:
a be the same as those for lawyers or engineers
b not be seen as strict when the client requests certain requirements
c be considered a minimum standard of performance
d clearly spell out right from wrong in every situation.
A proprietorship can have two owners, so long as they are husband and wife.
TrueFalse
In a corporation, the shareholders have liability for the actions of the corporation that extends beyond their investment.
TrueFalse
An organization, for accounting purposes, stands apart from other organizations and individuals as a separate accounting entity. TrueFalse
GAAP stands for:
a generally accrued auditing procedures.
b generally accrued accounting principles.
c generally accepted accounting principles.
d generally accepted auditing practices.
The accounting equation can be stated as assets liabilities owner's equity.
TrueFalse
An owner investment would increase the assets and decrease the liabilities of the firm.
TrueFalse
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