Question 1

Accounting information users need reports about the economic activities and condition of businesses.

True

False

10 points

Question 2

Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management.

True

False

10 points

Question 3

Some of the major fraudulent acts by senior executives started as what they considered to be small ethical lapses which grew out of control.

True

False

10 points

Question 4

Managerial accounting is primarily concerned with the recording and reporting of economic data and activities of an entity for use by owners, creditors, governmental agencies, and the public.

True

False

10 points

Question 5

The financial statements of a proprietorship should include the owner’s personal assets and liabilities.

True

False

10 points

Question 6

Drawings are an example of an expense.

True

False

10 points

Question 7

The double-entry accounting system records each transaction twice.

True

False

10 points

Question 8

The increase side of all accounts is the normal balance.

True

False

10 points

Question 9

The normal balance of an expense account is a credit.

True

False

10 points

Question 10

The process of transferring the data from the journal to the ledger accounts is posting.

True

False

10 points

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