1. Primary users of accounting information are accountants:

a. True
b. False

2. Short term investment would be classified as assets and would appear on income statement:

a. True
b. False

3. Which of the given is the objective of financial reporting by business enterprises?

a. Financial reporting must give assurance that all liabilities of business enterprises will be paid
b. Financial reporting must show timing and amount of future cash dividends to potential investors
c. Primary focus of financial reporting is information about assets of the entity.
d. Financial reporting should provide information about the economic resources of an enterprise, claims to those resources, and changes in those resources and claims to them.

4. Owned resources of a business are referred to as:

a. assets
b. liabilities
c. equities
d. revenues

5. Accounting equation may be expressed as:

a. Assets=Equities - Liabilities
b. Assets + Liabilities = Owner's Equity
c. Assets = Revenues less Liabilities
d. Assets - Liabilities = Owner's Equity