Accounting 11 Unit 1

Preparing your income tax return is made easier by a knowledge of accounting.

• true

• false

A knowledge of accounting is not helpful to people who own their own business because other employees do the accounting tasks.

• true

• false

Computers have eliminated six steps of the accounting cycle.

• true

• false

A medical clinic is considered to be a merchandising business.

• true

• false

A merchandising business buys goods and resells them at a higher price.

• true

• false

A non-profit organization is any firm that has recently lost money on its operation.

• true

• false

Shareholders are the owners of a corporation.

• true

• false

A bookkeeper may also be called an “accounting clerk.”

• true

• false

A good accounting system should provide adequate information for the use of:

• the management of the firm

• the owner of the firm

• the government

• lenders

• all of the other answers

Auditing may be described as:

• serving the general public

• the accounting procedures of a large company

• testing a firm's records and procedures for accuracy

• keeping accounting records for the government