QUIZ 1: AM111

Accounting provides management with information which are of financial in character and identifies which data is relevant for decision making.

• TRUE

• FALSE

The primary role of an accountant in business is to prepare financial statements.

• TRUE

• FALSE

Decision- makers of the business are relying on financial accounting data to be able to make decisions.

• TRUE

• FALSE

The primary motive of a person engaged in business is profit.

• TRUE

• FALSE

The accountancy profession is continually evolving and developing to meet the changing needs of time.

• TRUE

• FALSE

he preparation of financial statements is governed and guided by concepts or assumptions which are the very foundations of GAAP.

• TRUE

• FALSE

The length of accounting period chosen depends on the need of the owner for financial information about his business.

• TRUE

• FALSE

The excess of revenue over expenses is called operating loss.

• TRUE

• FALSE

It becomes compulsory to all business establishments to maintain and keep business records as required by law.

• TRUE

• FALSE

Accounting is considered the “language of business” because it is used as medium of communication in the world of business.

• TRUE

• FALSE