TRUE/FALSE
1.Poor decisions may result from improper use of information.
2.Accounting information helps decision makers determine where they are, where they have been and where they are going.
3.Kroger supermarket is an example of a service organization.
4.The price of goods and services in a market is a basis for measuring value.
5.Profit is the difference between the price a seller receives for goods and the total cost to the seller of all resources consumed in producing and selling those goods.
6.An effective business is one that provides goods/services at low costs relative to their selling prices.
7.The owners of a corporation are known as stockholders or shareholders.
8.Limited liability means that stockholders are personally liable for the debts of a corporation.
9.Contracts are legal agreements for the exchange of resources and services.
10.Accounting information helps managers assess employee performance.
11.The accounting information system is a subsystem of the management information system.
12.Information prepared by managerial accountants must be done according to generally accepted accounting principles (GAAP).
13.Financial accounting is the process of preparing, reporting, and interpreting accounting information for use by internal decision makers.
14.The reliability of accounting information depends on the ethical behavior of those who prepare, report, and audit such information.
15.An audit of a company’s accounting records is conducted by the company’s accounting staff.