True / False Questions
1.Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities.
2.Bookkeeping is the recording of transactions and events and is only part of accounting.
3.An accounting information system communicates data to help users make better decisions.
4.Financial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users.
5.Internal operating activities include research and development, distribution, and human resources.
6.The primary objective of managerial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.
7.External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.
8.External users include lenders, shareholders, customers, and regulators.
9.Regulators often have legal authority over certain activities of organizations.
10.Internal users include lenders, shareholders, brokers and managers.