Intro to Accounting

Accounting involves selecting, classifying and summarizing financial data.

• True

• False

Accounting does not provide essential information to decision-makers.

• True

• False

There are both __________ and __________ users.

• owners and friendly

• internal and non external

• internal and external

• non internal and external

Which of the following is not an internal user of accounting information?

• the bank

• owners

• managers

• employees

Assets will include:

• Expenses owing

• bank overdraft

• accounts payable

• equipment

Which of the following is INCORRECT?

• Assets= capital + liabilities

• capital=assets-liabilities

• capital=assets+ liabilities

• liabilities= assets-capital

The resources owned by the business are known as __________

• assets

• liabilities

• owner's equity

A current liability is to be settled within a year.

• True

• False

Machinery is considered a/an______________

• non current asset

• current asset

• non current liability

• current liability