1) Why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent

accounting cycles? A . B. . " . To reduce the federal income tax liability To aid management in cash-flow analysis !o match the costs of production with revenues as earned To adhere to the accounting constraint of conservatism

#) When an item of revenue is collected and recorded in advance$ it is normally called a%n) &&&&&&&&&&& revenue. A . B. . " . accrued prepaid unearned cash

') An accrued e(pense can best be described as an amount A . B. . " . not paid and not currently matched with earnings. paid and currently matched with earnings. not paid and currently matched with earnings. paid and not currently matched with earnings.

)) Which of the following statements is not an ob*ective of financial reporting? A . B. . " . +rovide information on the liquidation value of an enterprise. Provide information that is useful in investment and credit decisions. Provide information that is useful in assessing cash flow prospects. Provide information about enterprise resources, claims to those resources, and changes to them.

,) A common set of accounting standards and procedures are called A . financial accounting standards.

B. . " .

generally accepted accounting principles. objectives of financial reporting. statements of financial accounting concepts.

-) .eneral/purpose financial statements are the product of A . B. . " . financial accounting. managerial accounting. both financial and managerial accounting. neither financial nor managerial accounting.

0) ompanies that are listed on a stoc1 e(change are required to submit their financial statements to the A . B. . " . AI PA. AP!. "A#!. 23 .

4) !he 5inancial Accounting 2tandards Board %5A2B) was proposed by the A . B. . " . American Institute of ertified Public Accountants. Accounting Principles !oard. #tudy $roup on the %bjectives of "inancial #tatements. 2pecial 2tudy .roup on establishment of Accounting +rinciples %Wheat ommittee&.

6) !he 5inancial Accounting 5oundation A . B. . " oversees the operations of the 5A2B. oversees the operations of the AI PA. provides information to interested parties on financial reporting issues. wor's with the "inancial Accounting #tandards Advisory ouncil to provide informa-tion

to interested parties on financial reporting issues.