RECALL QUIZ CHAPTER 1

Managers use accounting information to make internal business decisions.

Investors are not interested in a company’s financial performance.

Creditors use accounting data to evaluate a company’s ability to repay debts.

Government agencies do not use accounting data for tax purposes.

Employees may use accounting information to assess the stability of their employer.

Accounting information is only useful for internal users.

Financial statements are irrelevant to potential investors.

The public has no interest in a company’s financial reporting.

A sole proprietorship is owned by only one individual.