True or False

1. Readers of financial statements can project an organizations past activities and results of operations into the future with great assurance and little risk because CPAs guarantee all of the numbers when they audit the financial statements

2.The FASB Accounting Standards Codification reorganized divergent sources of U.S. GAAP into a more accessible and researchable format

3.Accounting rules are codified laws that have been set by the U.S. Congress and must be followed by all who practice in the accounting profession.

4. Accounting standards may differ significantly from one country to another.

5.Accounting is only useful and needed in profit seeking organizations

6.The Public Company Accounting Oversights Board (PCAOB) was created as a result of the Sarbanes-Oxley Act (SOX) of 2002, and has the authority to set and enforce auditing, attestation, quality control and ethics (including independence) standards for public companies

7.Accounting is often referred to as the "language of business" because investors and creditors rely on accounting data to make decisions and informed judgments.

8.Integrity and objectivity are two of the key elements of ethical behavior for a professional accountant

9. The Securities Act of 1933 and the Securities and Exchange Act of 1934 passed by the U.S. Congress give the SEC the legal right to prescribe and regulate the accounting principles for large firms whose securities are traded on stock exchanges

10.Well-qualified internal auditors who hold the CIA credential are allowed to express audit opinions about their organization in substitution for the CPA's opinion.

11.Accounting can be broadly defined as a process of identifying, measuring and communicating economic information about an organization primarily for income tax purposes.

12.Note disclosures are required in financial reporting because management knows more about its business activities than do other financial statement users, and the decisions made by "outside" users are improved if note to the financial statements are provided.

13. Public accountants must be independent of the firms they audit in order to maintain their credibility.