ACC Reviewer

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

• True

• False

Transactions that can be measured in dollars and cents are recorded in the financial information system.

• True

• False

The hiring of a new company president is an economic event recorded by the financial information system

• True

• False

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

• True

• False

Accounting communicates financial information about a business enterprise to both internal and external users.

• True

• False

Accounting information is used only by external users with a financial interest in a business enterprise.

• True

• False

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

• True

• False

Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.

• True

• False

The origins of accounting are attributed to Luca Pacioli, a famous mathematician

• True

• False

The study of accounting will be useful only if a student is interested in working for a profit- oriented business firm

• True

• False