Indicate whether each of the five statements presented below is true or false. If false, state why.
1. The three steps in the accounting process are identifi cation, recording, and examination.
2. The two most common types of external users are investors and creditors.
3. IFRSs are issued by the IASB.
4. The primary accounting standard-setting body in the United States is the Securities and Exchange Commission (SEC).
5. The historical cost principle dictates that companies record assets at their cost and continue to report them at their cost over the time the asset is held.