The favorable and unfavorable trends and significant events

Question

Problem:

1. I. The favorable and unfavorable trends and significant events or uncertainties in the areas of liquidity, capital resources, and the results o operations can all be found in the management discussion and analysis section of the annual report.

         II. Generally accepted accounting principles provide a measure of uniformity and do not allow discretion in the preparation of financial statements.

1. Only Statement I is true.
2. Only Statement II is true.
3. Both Statements I and II are true.
4. Both Statements I and II are false.

2. All of the following statements are false except:

1. A significant change in 1998 eliminates the need for companies to report comprehensive income.
2. Corporations must use straight-line depreciation.
3. Using two sets of accounting rules - one for reporting purposes and one for tax purposes - is illegal.
4. The globalization of business activity has resulted in the need for a set of accounting rules that would be uniform in all countries.

Additional Information:

This multiple questions belong to the Finance. The 1^st and 2^nd questions are about whether or not the two statements are true or false.