Chapter 1 Accounting in Action

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

• True

• False

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

• True

• False

The two components of equity are retained earnings and share capital.

• True

• False

International Financial Reporting Standards are determined by the IASB.

• True

• False

Providing services for cash increases assets and equity.

• True

• False