EVALUATED INTERMEDIATE ACCOUNTING CHAPTERS 1 & 2 QUESTIONS AND ANSWERS

EVALUATED INTERMEDIATE ACCOUNTING CHAPTERS 1 & 2 QUESTIONS AND ANSWERS Which of the following is not a user of financial reports? A. Government agencies. B. Unions. C. Creditors. D. Customers. - CORRECT ANSWER -D. Customers. What is the objective of financial reporting? A. Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors. B. Provide information that excludes claims to the resources. C. Provide information that is useful to management in making decisions. D. Provide information that clearly portrays nonfinancial transactions. - CORRECT ANSWER -A. Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors. Primary users for general-purpose financial statements include each of the following except A. employees. B. creditors. C. suppliers. D. investors. - CORRECT ANSWER -A. employees. A common set of accounting standards and procedures is called A. financial accounting standards. B. statements of financial accounting concepts. C. generally accepted accounting principles. D. objectives of financial reporting. - CORRECT ANSWER -C. generally accepted accounting principles. A characteristic of generally accepted accounting principles includes: