The principle of neutrality states that, all else equal

A) taxes that are neutral with respect to economic decisions are generally preferable to taxes that distort economic decisions.
B) taxes that distort economic decisions are generally preferable to taxes that are neutral with respect to economic decisions.
C) taxes that are neutral with respect to economic decisions are equally preferable to taxes that distort economic decisions.
D) in the long run, all taxes are essentially neutral with respect to economic decisions.

A gratuitous promise is a promise made without consideration.

A(n) _____ is a financial statement that is directly based on the accounting equation.

A) balance sheet
B) income statement
C) statement of cash flows
D) statement of changes in retained earnings

The principles of developing an accounting information system do not include

A) usefulness.
B) flexibility.
C) cost effectiveness.
D) elimination of human involvement.