Question 3: MULTIPLE CHOICE QUESTIONS: (A1&A3) (5 Points) 1) The financial statement that report assets, liabilities, and owner's equity is the: a. Income statement. b. Owner's equity statement. c. Balance sheet. d. Statement of cash flow. 2) General-purpose financial statements are the product of financial accounting b. managerial accounting. both financial and managerial accounting. d. neither financial nor managerial accounting. a. c. a. 3) Users of financial reports include all of the following except creditors. b. government agencies. unions. d. All of these are users. 4) The purpose of the International Accounting Standards Board is to a. issue enforceable standards which regulate the financial accounting and reporting of multinational corporations. b. develop a uniform currency in which the financial transactions of companies through-out the world would be measured. c. promote uniform accounting standards among countries of the world. d. arbitrate accounting disputes between auditors and international companies. 5) Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This link is a. relevance. b. reliability. understandability. d. materiality. c. a. 6) The overriding criterion by which accounting information can be judged is that of usefulness for decision making, b. freedom from bias. timeliness. d. comparability. c