Of the following, the most important objective for financial reporting is to provide information useful for

81. Of the following, the most important objective for financial reporting is to provide information useful for: 

A. Predicting cash flows.
B. Determining taxable income.
C. Providing accountability.
D. Increasing future profits.

82. The International Accounting Standards Board: 

A. Is governed by the U.S. Securities and Exchange Commission.
B. Can overrule the FASB when their policies disagree.
C. Promotes the use of high-quality, understandable global accounting standards.
D. Is the primary standard-setting body in the United States.

83. Independent auditors express an opinion on the: 

A. Fairness of financial statements.
B. Amount of income taxes a company owes to the government.
C. Quality of the company's products.
D. Quality of a company's workforce.

84. The body of rules and procedures that guide the measurement and communication of financial accounting information is known as: 

A. Standards of Professional Compliance (SPC).
B. Generally Accepted Accounting Principles (GAAP).
C. Generally Accepted Auditing Standards (GAAS).
D. Rules of Financial Reporting (RFR).

85. The independent, private-sector group that is primarily responsible for setting financial reporting standards in the United States is the: 

A. FASB.
B. IASB.
C. SEC.
D. IRS.

86. Which statement below best describes the objectives of financial accounting? 

A. Provide information that helps predict cash flows.
B. Provide information about the economic resources, claims to resources and changes in resources and claims.
C. Provide information that is useful in making decisions.
D. All of the above are correct.

87. The assumption that a business can continue to remain in operation into the future is the: 

A. Monetary unit assumption.
B. Periodicity assumption.
C. Economic entity assumption.
D. Going concern assumption.

88. The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is: 

A. Timeliness.
B. Neutrality.
C. Confirmatory value.
D. Predictive value.

89. The major underlying assumptions of accounting include all of the following except: 

A. Economic entity.
B. Monetary unit.
C. Legal liability.
D. Going concern.

90. The assumption that the assets and liabilities of the business are accounted for on the books of the company but not included in the records of the owner is the: 

A. Monetary unit assumption.
B. Going concern assumption.
C. Economic entity assumption.
D. Periodicity assumption.