Student name:__________ 1) Indicate whether each of the following statements about markets is true or false. ________ a) Financial resources can be provided to a business by investors. ________ b) Resource owners are the businesses that transform resources into products that satisfy consumer desires. ________ c) Labor resources include both the physical and intellectual labor of a business's employees. ________ d) Businesses purchase their resources from resource owners. ________ e) Consumers are the main providers of resources in any market.
2) Indicate whether each of the following statements about accounting information is true or false. ________ a) Financial accounting is primarily intended to satisfy the information needs of internal stakeholders. ________ b) Managerial accounting information includes financial and nonfinancial information. ________ c) The accounting information intended to satisfy the needs of a company's employees is managerial accounting information. ________ d) GAAP requires that companies adhere to financial accounting standards. ________ e) Managerial accounting information is usually less detailed than financial accounting information.
3)
Indicate whether each of the following statements about liabilities is true or false.
________ a) A net loss on the income statement decreases liabilities. ________ b) The acquisition of a bank loan increases both assets and liabilities. ________ c) The accounting equation requires that liabilities be equal to stockholders’ equity. ________ d) The amount of a company's liabilities is equal to the difference between its assets and its stockholders’ equity. ________ e) Liabilities are reported on the statement of cash flows of a business.