Financial Accounting and Generally Accepted Accounting Principles Answer the following multiple-choice questions:

1. What is not a primary function of financial accounting in society?

a. Provide comedy material for late-night talk shows.

b. Aid in the proper allocation of financial resources in a free enterprise economic system.

c. Aid users to make better investing decisions.

2. IFRS refers to:

a. A random set of letters.

b. A set of standards and procedures that form guidelines for international financial accounting.

c. A set of standards and procedures that form guidelines for international managerial accounting.

3. GAAP:

a. Is the distance between two objects.

b. Is a set of guidelines for preparing managerial reports in the United States.

c. Is a set of guidelines for preparing financial reports in the United States.