1. The primary objective of financial reporting is to provide useful information to external decision makers. True False
2. In order for information to be relevant, the information needs to be complete, neutral, and free from error. True False
3. In order for information to be relevant, the information should have both predictive and/or feedback value. True False
4. The continuity assumption states that a business will continue to operate into the foreseeable future. True False
5. The current assets section of a balance sheet includes both inventory and prepaid expenses. True False