Question Details

Which of the following statements is not an objective of financial reporting 



1.	Users of financial reports include all of the following except:
a.	creditors.
b.	government agencies.
c.	unions.
d.	All of these are users.

	2.	The information provided by financial reporting pertains to
a.	individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers.
b.	business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers.
c.	individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers.
d.	an economy as a whole and to members of society as consumers, rather than to individual enterprises or industries.

	3.	What is a major objective of financial reporting?
a.	Provide information that is useful to management in making decisions.
b.	Provide information that clearly portray nonfinancial transactions.
c.	Provide information that is useful to assess the amounts, timing, and uncertainty of perspective cash receipts.
d.	Provide information that excludes claims to the resources.

	4.	Which of the following statements is not an objective of financial reporting ?
a.	Provide information that is useful in investment and credit decisions.
b.	Provide information about enterprise resources, claims to those resources, and changes to them.
c.	Provide information on the liquidation value of an enterprise.
d.	Provide information that is useful in assessing cash flow prospects.

	5.	Accrual accounting is used because
a.	cash flows are considered less important.
b.	it provides a better indication of ability to generate cash flows than the cash basis.
c.	it recognizes revenues when cash is received and expenses when cash is paid.
d. 	none of the above.




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