Multiple choice

1. FASB has had the responsibility for developing accounting principles since the early 

a. 1900s.

b. 1920s.

 c. 1940s. 

d. 1970s. 

2. Which one of the following is primarily interested in the liquidity of a company? 

a. Federal government 

b. Stockholders 

c. Long-term creditors 

d. Short-term creditors 

3 Which one of the following is not a characteristic generally evaluated in analyzing financial statements? 

a. Liquidity 

b. Profitability 

c. Marketability 

d. Solvency 

4. In analyzing the financial statements of a company, a single item on the financial statements a. should be reported in bold-face type. 

b. is more meaningful if compared to other financial information. 

C. is significant only if it is large. 

d. should be accompanied by a footnote.