E1.15 GRADE A QUESTIONS
1. The primary objective of financial reporting is to provide information - (correct
answer)Useful to capital providers.
2. Statements of Financial Accounting Concepts issued by the FASB - (correct
answer)Identify the conceptual framework within which accounting standards are
developed.
3. In general, revenue is recognized when - (correct answer)A good or service has been
delivered to a customer.
4. In depreciating the cost of an asset, accountants are most concerned with - (correct
answer)Recognizing expense in the appropriate period.
5. The primary objective of the matching principle is to
Promote comparability between financial statements of different periods. - (correct
answer)b.Record expenses in the period that related revenues are recognized.
6. The separate entity assumption states that, in the absence of contrary evidence, all
entities will survive indefinitely - (correct answer)False
1. The primary objective of financial reporting is to provide information - (correct
answer)Useful to capital providers.
2. Statements of Financial Accounting Concepts issued by the FASB - (correct
answer)Identify the conceptual framework within which accounting standards are
developed.
3. In general, revenue is recognized when - (correct answer)A good or service has been
delivered to a customer.
4. In depreciating the cost of an asset, accountants are most concerned with - (correct
answer)Recognizing expense in the appropriate period.
5. The primary objective of the matching principle is to
Promote comparability between financial statements of different periods. - (correct
answer)b.Record expenses in the period that related revenues are recognized.
6. The separate entity assumption states that, in the absence of contrary evidence, all
entities will survive indefinitely - (correct answer)False
