Chapter 1 1) Which of the following entities would not require accounting information pertaining to their economic activities? A) Social clubs B) Not-for-profit entities C) State governments D) Small businesses E) All of these entities require accounting information. 2) The authoritative financial accounting standards-setting body in the United States is presently the: A) Public Company Accounting Oversights Board (PCAOB) B) Financial Accounting Standards Board (FASB) C) Accounting Principles Board (APB) D) Securities and Exchange Commission (SEC) E) International Accounting Standards Board (IASB) 3) Which of the following statements about the Financial Accounting Standards Board is correct? A) The FASB follows a due process procedure that permits input from interested parties before an Accounting Standards Update (ASU) is issued. B) The FASB is controlled by the American Institute of CPAs. C) The FASB is an agency of the Federal government. D) The FASB has the authority to fine a noncompliant firm. 4) Major classifications of accounting activity would not include: A) financial accounting, internal auditing, public accounting. B) internal auditing, governmental accounting, managerial accounting. C) financial accounting, national accounting, cost accounting. D) auditing, income tax accounting, governmental accounting.