TRUE/FALSE 1. There are more corporations than sole proprietorships and partnerships in the United States. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1-1 NAT: BUSPROG: Communication STA: AICPA FN-Reporting | ACBSP-APC-01-Purpose KEY: Bloom's: Knowledge NOT: 1 min. 2. The three main business activities are financing, operating, and investing. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1-2 NAT: BUSPROG: Communication STA: AICPA FN-Reporting | ACBSP-APC-03-Business Forms KEY: Bloom's: Knowledge NOT: 1 min. 3. Internal users of accounting information include present creditors and management. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1-1 NAT: BUSPROG: Communication STA: AICPA FN-Reporting | ACBSP-APC-01-Purpose KEY: Bloom's: Knowledge NOT: 1 min. 4. The income statement summarizes the assets, liabilities and stockholders’ equity for a period of time. ANS: F PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1-3 NAT: BUSPROG: Communication STA: AICPA FN-Reporting | ACBSP-APC-09-Financial Statement KEY: Bloom's: Knowledge NOT: 1 min. 5. The four basic financial statements are the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. ANS: T PTS: 1 DIF: Difficulty: Easy OBJ: LO: 1-3 NAT: BUSPROG: Communication STA: AICPA FN-Reporting | ACBSP-APC-09-Financial Statement KEY: Bloom's: Knowledge NOT: 1 min. 6. The amount of earnings distributed to stockholders can be found in the income statement as an expense.