Please select or highlight the correct answer for each of the following questions:

Financial statements provide information about business activities to decision makers. True$/$False

The primary objective of financial reporting is to provide information:

a$.$ regarding the cash flows of the business

b$.$ useful for making investment decisions and for assessing management's stewardship.

c$.$ to the federal government

d$.$ about the profitability of the business

Audits conducted by external accountants express an opinion:

a$.$ that gives investors' confidence their investment is not at risk.

b$.$ that evaluates the effectiveness of management.

c$.$ that taxing authorities use to ensure that the correct amount of tax owing has been calculated.

d$.$ on whether the financial statements fairly reflect the economic events that occurred during the accounting period.

Rules of professional conduct for accountants should:

a$.$ be the same as those for lawyers or engineers

b$.$ not be seen as strict when the client requests certain requirements

c$.$ be considered a minimum standard of performance

d$.$ clearly spell out right from wrong in every situation.

A proprietorship can have two owners, so long as they are husband and wife.

True$/$False

In a corporation, the shareholders have liability for the actions of the corporation that extends beyond their investment.

True$/$False

An organization, for accounting purposes, stands apart from other organizations and individuals as a separate accounting entity. True$/$False

GAAP stands for:

a$.$ generally accrued auditing procedures.

b$.$ generally accrued accounting principles.

c$.$ generally accepted accounting principles.

d$.$ generally accepted auditing practices.

The accounting equation can be stated as assets $+$ liabilities $=$ owner's equity.

True$/$False

An owner investment would increase the assets and decrease the liabilities of the firm.

True$/$False