AC 3202 Corporate Accounting I, Semester A, 2016/2017
Week 1 Assignments
A. True/False questions
1. The primary function of financial accounting is to provide financial information about
the reporting entity that is useful to existing and potential investors, lenders and other
creditors in making decisions about providing resources to the entity.
2. Under the entity assumption, a company is considered an extension of its owners.
3. Representational faithfulness and predictive value are two ingredients of the
qualitative characteristic of relevance.
4. Charging depreciation expense for buildings over its useful life is an application of the
cost principle.
