2220 BAF1614 LECTURE

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

• 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

Accountants record both internal and external transactions.

• True

• False

The accounting process is correctly sequenced as

  

• identification, communication, recording.

• recording, communication, identification.

• identification, recording, communication.

• communication, recording, identification.

5. Which of the following is an external user of accounting information?

• Labor unions.

• Finance directors.

• Company officers.

• Managers.