Accounting in Action

Bookkeeping usually involves ONLY the recording of economic events.

• TRUE

• FALSE

Internal users of accounting information are managers who plan, organize, and run the business. These include marketing managers, production supervisors, fi nance directors, and company officers.

• TRUE

• FALSE

This provides internal reports to help users make decisions about their companies.

Are individuals and organizations outside a company who want fi nancial information about the company.

The three steps in the accounting process are identification, recording, and communication.

• TRUE

• FALSE

Bookkeeping encompasses ALL steps in the accounting process

• TRUE

• FALSE

Accountants prepare, but DO NOT interpret, financial reports.

• TRUE

• FALSE

The two most common types of external users are investors and company officers

• TRUE

• FALSE

Managerial accounting activities focus on reports for INTERNAL users

• TRUE

• FALSE

FINANCIAL accounting activities focus on reports for EXTERNAL users

• TRUE

• FALSE