1 The primary objective of financial reporting is to provide

1. The primary objective of financial reporting is to provide information. O Useful to capital providers. O Concerning the changes in financial position resulting from the income-producing efforts of the entity. O About a firm\'s management team O About a firm\'s financing and investing activities. 2 Statements of Financial Accounting Concepts issued by the FASB O Identify the conceptual framework within which accounting standards are developed. O Represent GAAP O Have been superseded by SFASs O Are subject to approval of the SEC. 3. In general, revenue is recognized when O A contract has been signed. O A purchase order has been received O The sales price has been collected O A good or service has been delivered to a customer 4 In depreciating the cost of an asset, accountants are most concerned with ORecognizing revenue in the appropriate period O Conservatism. O Full disclosure. O Recognizing expense in the appropriate period. Prev 7017

Solution

1. Option (A) Useful to capital providers

2. Option (A) Identify the conceptual framework within which accounting standards are developed.

3. Option (D) A good or service has been delivered to a customer

4. Option (D) Recognising expense in the appropriate period

5. Option (D) Record expenses in the period that related revenues are recognised

6. False