Indicate whether each of the five statements presented below is true or false. If false, indicate how to correct the statement. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable. The standards of conduct by which actions are judged as loyal or disloyal are ethics. The primary accounting standard-setting body in the

Chapter 1, DO IT! Exercises #2

Indicate whether each of the five statements presented below is true or false. If false, indicate how to correct the statement.

Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.
The standards of conduct by which actions are judged as loyal or disloyal are ethics.
The primary accounting standard-setting body in the United States is the Securities and Exchange Commission (SEC).
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.
The monetary unit assumption requires that companies record only transactions that can be measured in money terms.