Chapter 1 - Introduction to Accounting

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

• True

• False

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

• True

• False

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

• True

• False

A partnership must have more than one owner.

• True

• False

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.

• True

• False

The monetary unit assumption states that transactions that can be measured in terms of money should be recorded in the accounting records.

• True

• False

The International Accounting Standards Board (IASB) sets accounting standards for the United States.

• True

• False

For accounting purposes, partnership affairs should be kept separate from the personal activities of the owners.

• True

• False

Which of the correct sequence of accounting activities?

• Recording , Identification, Communication

• Identification, Recording, Communication

• Communication, Recording, Identification

What is proprietorship business?

• Business own by two or more person

• Business ownership divided by share

• Business own by one person