Exercise 1-2

Accounting is a process of identifying, recording, and communicating economic information that is useful in making economic decisions.

• TRUE

• FALSE

Only accountable events are recorded in the books of accounts.

• TRUE

• FALSE

Accountable events are those that affects the assets, liabilities, equity, income and expenses of a business.

• TRUE

• FALSE

Sociological and psychological matters are within the scope of accounting.

• TRUE

• FALSE

The basic purpose of accounting is to provide information that is useful in making economic decisions.

• TRUE

• FALSE

Accounting is described as a practical art. This is because it is a body of knowledge which has been systematically gathered, classified and organized.

• TRUE

• FALSE

Accounting is described as an information system. This is because it requires the sue of creative skills and judgment.

• TRUE

• FALSE

Bookkeeping and Accounting are the same.

• TRUE

• FALSE

Accounting is often referred to as the "language of the soul" because it is fundamental to the communication of financial information.

• TRUE

• FALSE

Financial information in accounting reports is also quantitative information.

• TRUE

• FALSE