Question 1 All of the following are current liabilities except 0 sales taxes payable. operating lines of credit. O current maturities of long-term debt. all of these options are current liabilities. Question 2 Which of the following is an estimated liability? current portion of long-term debt. 0 notes payable. 0 salaries payable. 0 product warranties. Question 3 When a store sells gift cards for cash, the journal entry will debit Cash and credit Unearned Revenue. O Sales Accounts Payable. O Sales Discounts. Question 4 Financial information must be a faithful representation of the economic reality of the events. Faithful representation is achieved when the information is: complete neutral free from material error all of the above Question 5 A key assumption that provides a foundation for financial reporting is the: going concern assumption economic performance assumption 0 cost assumption o liquidity assumption Question 6 The conceptual framework does not include O the objective of financial reporting. o elements of financial statements. O recognition and measurement criteria. specific standards to be followed in preparing financial statements. Question 7 Which statement below is not true? The conceptual framework includes specific rules for every situation. The conceptual framework ensures the existing standards and practices are clear and consistent The conceptual framework provides guidance in responding to new issues and developing new standards. The conceptual framework increases financial statement users' understanding of and confidence in the financial statements. Question 8 Which one of the following is the main objective of financial reporting according to the conceptual framework? O to provide information that will increase the value of the company O to provide information in assessing future cash flows O to provide information about the company's capital providers O to provide financial information that is useful to existing and potential investors and creditors in making decisions about a business Question 9 The overriding criterion in evaluating the accounting information to be presented is O fairness. O legality. O management's goals. O decision usefulness. ES Question 10 In order for accounting information to be relevant, it must O have very little cost. O have predictive or confirmatory value. o be comparable. o be used by a lot of different firms