. Statements of Financial Accounting Concepts issued by the FASB a. Represent GAAP b. Have been…

. Statements of Financial Accounting Concepts issued by the FASB a. Represent GAAP b. Have been superseded by SFASs c. Are subject to approval of the SEC d. Identify the conceptual framework within which accounting standards are developed 3. In general, revenue is recognized when a. The sales price has been collected b. A purchase order has been received c. A good or service has been delivered to a customer d. A contract has been signed 4. In depreciating the cost of an asset, accountants are most concerned with a. Conservatism b. Recognizing revenue in the appropriate period c. Full disclosure d. Recognizing expense in the appropriate period 5. The primary objective of the matching principle is to a. Provide full disclosure b. Record expenses in the period that related revenues are recognized c. Provide timely information to decision makers d. Promote comparability between financial statements of different periods 6. The separate entity assumption states that, in the absence of contrary evidence, all entities will survive indefinitely. a. True b. False

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