Unit 1 Accounting Test Bank

TRUE-FALSE STATEMENTS

1. Owners of business firms are the only people who need accounting information.

Ans: F SO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

2. Transactions that can be measured in dollars and cents are recorded in the financial information system.

Ans: T SO1 BT: K Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

3. The hiring of a new company president is an economic event recorded by the financial information system.

Ans: F SO1 BT: C Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

4. Management of a business enterprise is the major external user of information.

Ans: F SO2 BT: K Difficulty: Easy TOT: .5 min AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

5. Accounting communicates financial information about a business enterprise to both internal and external users.

Ans: T SO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

6. Accounting information is used only by external users with a financial interest in a business enterprise.

Ans: F SO2 BT: C Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

7. Financial statements are the major means of communicating accounting information to interested parties.

Ans: T SO2 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting

8. Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.

Ans: F SO2 BT: C...