Accounting Principles and Financial Information Quiz

Verifiability is having information available to decision makers in time for them to make business decisions.

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.

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.

The role of accounting is to provide different users with financial information to make economic decisions.

Some users of the financial information of a business are employed by the business while others are independent, outside parties.

Financial information of a business is only used by the business itself and not by any outside parties.

Verifiability is not an important aspect of financial information for decision makers.

When a business is organized as a sole proprietorship, the owner cannot combine his personal financial information with the business financial information.

Assets are adjusted each year to reflect changes in market value for valuation purposes.