Test Bank For Financial Accounting 8CEdition By Robert Libby, Patricia Libby, Frank Hodge, George Kanaan, Maureen Sterling Chapter 1-13 Answers are at the End of Each Chapter Chapter 1 Student name:__________ 1) Accounting is a system that collects and processes financial information about an
organization and reports that information to decision makers. ⊚ true ⊚ false
2) External users of accounting information include the managers who plan, organize, and run a
business. ⊚ true ⊚ false
3) In accounting and reporting for a business entity, the accounting and reporting for the
business must be kept separate from other economic affairs of its owners. ⊚ true ⊚ false
4) Accounting communicates financial information about a business to both internal and
external users. ⊚ true ⊚ false A statement of financial position should be dated for a period (such as "For the year ended December 31, 20X1"), whereas a statement of earnings should be dated at a point in time (such as "At December 31, 20X1"). ⊚ true ⊚ false