Chap 01 8ce Libby
1) Accounting is a system that collects and processes financial information about an
organization and reports that information to decision makers.
⊚ true
⊚ false
2) External users of accounting information include the managers who plan, organize, and run a
business.
⊚ true
⊚ false
3) In accounting and reporting for a business entity, the accounting and reporting for the
business must be kept separate from other economic affairs of its owners.
⊚ true
⊚ false
4) Accounting communicates financial information about a business to both internal and
external users.
⊚ true
⊚ false
5) A statement of financial position should be dated for a period (such as "For the year ended
December 31, 20X1"), whereas a statement of earnings should be dated at a point in time
(such as "At December 31, 20X1").
⊚ true
⊚ false
6) Expenses are the cost of assets consumed or services used in the process of generating
revenue.
⊚ true
⊚ false
1
1) Accounting is a system that collects and processes financial information about an
organization and reports that information to decision makers.
⊚ true
⊚ false
2) External users of accounting information include the managers who plan, organize, and run a
business.
⊚ true
⊚ false
3) In accounting and reporting for a business entity, the accounting and reporting for the
business must be kept separate from other economic affairs of its owners.
⊚ true
⊚ false
4) Accounting communicates financial information about a business to both internal and
external users.
⊚ true
⊚ false
5) A statement of financial position should be dated for a period (such as "For the year ended
December 31, 20X1"), whereas a statement of earnings should be dated at a point in time
(such as "At December 31, 20X1").
⊚ true
⊚ false
6) Expenses are the cost of assets consumed or services used in the process of generating
revenue.
⊚ true
⊚ false
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