A borrower benefits from providing financial information regarding income and expenses in the form of a lower interest rate on the loan because of reduced uncertainty for the lender with regard to repayment.

• True

• False

Which of the following is NOT one of the three primary financial statements?

• The Statement of Retained Earnings

• The Balance Sheet

• The Statement of Cash Flows

• The Income Statement

One reason for a company's preparing and providing financial statements is to reduce uncertainty for an investor regarding the firm's future financial performance.

• True

• False

The idea that the activities of the entity are to be separated from those of the individual owner is the

• Separate entity concept

• Arm's-length transaction assumption

• Money measurement concept

• Going concern assumption

Which of the following financial statements provides a picture of the enterprise at a particular point in time?

• Balance Sheet

• Statement of Retained Earnings

• Statement of cash flow

• Income Statement

Which of the following accounts is considered to be the most liquid?

• Lane

• Inventory

• Accounts Receivable

• Cash

The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the

• Arm's-length transaction assumption

• Entity concept

• Monetary measurement concept

• Going concern concept

Which of the following would be considered a long-term liability?

• Wages payable

• Mortgage payable

• Accounts payable

• Land

Which of the following generally is NOT considered to be a liability?

• Accounts payable

• Taxes payable

• Inventory

• Notes payable

Owners of a corporation are referred to as

• stockholders

• debtors

• creditors

• partners