RECALL QUIZ CHAPTER 1

Managers use accounting information to make internal business decisions.

• TRUE

• FALSE

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

• TRUE

• FALSE

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

• TRUE

• FALSE

Government agencies do not use accounting data for tax purposes.

• TRUE

• FALSE

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

• YES

• NO

Accounting information is only useful for internal users.

• YES

• NO

Financial statements are irrelevant to potential investors.

• TRUE

• FALSE

Lenders use accounting information to assess a company’s creditworthiness.

• YES

• NO

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

• TRUE

• FALSE

A sole proprietorship is owned by only one individual.

• TRUE

• FALSE