1. Indicate whether each of the five statements presented below is true or fal

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.