9 Questions
Verifiability is having information available to decision makers in time for them to make business decisions.
False
When a business is organized as a sole proprietorship, the owner may combine his personal financial information with the business financial information given that he is the same person who owns the business.
False
Assets are recorded at cost when they are purchased, but the asset accounts are adjusted each year to reflect changes in market value for valuation purposes.
False
The role of accounting is to provide different users with financial information to make economic decisions.
True
Some users of the financial information of a business are employed by the business while others are independent, outside parties.
True
Financial information of a business is only used by the business itself and not by any outside parties.
False
Verifiability is not an important aspect of financial information for decision makers.
False
When a business is organized as a sole proprietorship, the owner cannot combine his personal financial information with the business financial information.
True
Assets are adjusted each year to reflect changes in market value for valuation purposes.
True
Test your knowledge of accounting principles and financial information with this quiz. Learn about the role of accounting, different users of financial information, and key concepts such as verifiability and timeliness. Perfect for students, professionals, and anyone interested in understanding the fundamentals of accounting.
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