Management of a business enterprise is the major external user of information.

Accounting communicates financial information about a business enterprise to both internal and external users.

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

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

Transactions that can be measured in pesos and cents are recorded in the financial information system.

Accounting information is used only by external users with a financial interest in a business enterprise.

Financial statements are the major means of communicating accounting information to interested parties.

The origins of accounting are attributed to Luca Pacioli, a famous mathematician.

The study of accounting will be useful only if a student is interested in working for a profit-oriented business firm.

Private accountants are accountants who are not employees of business enterprises.

The study of accounting is not useful for a business career unless your career objective is to become an accountant.

A working knowledge of accounting is not relevant to a lawyer or an architect.

Expressing an opinion as to the fairness of the information presented in financial statements is a service performed by CPAs.

The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.

Accountants rely on a fundamental business concept-ethical behavior in reporting financial information.

The economic entity assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities.

The purchase of office equipment on credit increases total assets and total liabilities

The cost and fair market value of an asset are the same at the time of acquisition and in all subsequent periods.

Owners' claims to total business assets take precedence over the claims of creditors because owners invest assets in the business and are liable for losses