Account True False[1 Marks ]

A creditor would use an entitie's financial report to determine whether or not credit may be granted to the firm.

Accounting is the language of business.

Accounting may be affected by window dressing.

State whether the following statements are True or False with reason:
Financial Statements are not comparable.

Creditors are external users of accounting information.

State whether the following statements are True or False with reason:
Accounting may be influenced by the personal judgment.

Accounting is not accepted as evidence in legal matters.

Management of an enterprise is internal user of its accounting information.

Book-keeping starts where accounting ends.

Accounting makes a record of qualitative aspects of business.

Accounting is helpful in raising loans.

Accounts are prepared on the basis of historical costs.

Only those transactions are recorded in accounting which can be expressed in terms of money.

Accounting is a service function.

Accounting involves only the recording of business transactions.

State whether the following statements are True or False with reason:
Accounting Information must be presented in such a way that only accounting people understand it.

State whether the following statements are True or False with reason:
Accounting Information must be reliable.