Chapter 1 - Accounting in Action
T or F: Accounting communicates financial information about a business enterprise to both internal and external users
True
T or F: Financial statements are the major means of communicating accounting information to interested parties
True
T or F: The origins of accounting are attributed to Luca Paciolli, a famous mathematician
True
T or F: Transactions that can be measured in dollars and cents are recorded in the information system
True
T or F: A working knowledge of accounting is not relevant to a lawyer or an architect
False
T or F: Accounting information is used only by external users with a financial interest in a business enterprise
False
T or F: Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process
False
T or F: Management of a business enterprise is the major external user of information
False
T or F: Owners of business firms are the only people who need accounting information
False
T or F: Private accountants are accountants who are not employees of business enterprises
False
T or F: The Hiring of a new company president is an economic event recorded by the financial information system
False
T or F: The Study of accounting is not useful for a business career unless your career objective is to become an accountant
False
T or F: The Study of accounting will be useful only if a student is interested in working for a profit oriented business firm
False
