1. Indicate whether each of the five statements presented below is true or false.
1. The three steps in the accounting process are identification, recording, and communication.
2. The two most common types of external users are investors and company
officers.
3. Congress passed the Sarbanes Oxley Act of 2002 to reduce unethical
behavior and decrease the likelihood of future corporate scandals.
4. The primary accounting standard setting body in the United States is the
Financial Accounting Standards Board (FASB).
5. The cost principle dictates that companies record assets at their cost. In later
periods, however, the market value of the asset must be used if market value
is higher than its cost.
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