Exam (elaborations)
Accounting Ch. 1-4 Test Bank questions & answers.
- Course
- Institution
Accounting Ch. 1-4 Test Bank questions & answers.
[Show more]
Seller
Follow
Content preview
Accounting Ch. 1-4 Test Bank questions& answers.
T or F,
Owners of business firms are the only people who need accounting information ANS - F
T or F
Transactions that can be measured in dollars and cents are recorded in the financial information system
ANS - T
T or F
The hiring of a new company president is an economic event recorded by the financial information
system ANS - F
T or F
Management of a business enterprise is the major external user of information ANS - F
T or F
Accounting communicates financial information about a business enterprise to both internal and
external users ANS - T
T or F
Accounting information is used only by external users with a financial interest in a business enterprise
ANS - F
T or F
Financial statements are the major means of communicating accounting information to interested
parties ANS - T
T or F
,Bookkeeping and accounting are one and the same because the bookkeeping function includes the
accounting process ANS - F
T or F
The origins of accounting are attributed to Luca Pacioli, a famous mathematician ANS - T
T or F
The State Administration of Taxation in the People's Republic of China is an example of an internal user
of accounting informa ANS - F
T or F
The German Confederation of Trade Union is an example of an external user of accounting information
ANS - T
T or F
Accountants rely on a fundamental business concept - ethical behaviour - in reporting financial
information ANS - T
T or F
The process of reducing the differences between GAAP and IFRS is known as convergence ANS - T
T or F
Even though a partnership is not a separate legal entity, for accounting purposes the partnership affairs
should be kept separate from the personal activities of the owner ANS - T
T or F
The economic entity assumption requires that the activities of an entity be kept separate and distinct
from the activities of its owner and all other economic entities ANS - T
T or F
, The monetary unit assumption states that transactions that can be measured in terms of money should
be recorded in the accounting records ANS - T
T or F
In order to possess future service potential, an asset must have physical substance ANS - F
T or F
Owners' claims to total business assets take precedence over the claims of credits because owners
invest assets in the business and are liable for losses. ANS - F
T or F
The basic accounting equation states that Assets = Liabilities ANS - F
T or F
Share capital is the total amount paid in by shareholders for shares purchased ANS - T
T or F
The principal source of equity is amounts paid in by shareholders ANS - F
T or F
Expenses are increases in equity that result from operating the business ANS - F
T or F
The two components of equity are retained earnings and share capital ANS - T
T or F
The purchase of an asset on account increases assets and decreases equity ANS - F
T or F
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Professorkaylee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67232 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now