Test Bank For Financial Accounting Fundamentals, 8th Edition By John Wild Chapter 1-13 Answers are at the End of Each Chapter Chapter 01: Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Accounting is an information and measurement system that identifies, records, and communicates an organization's business activities. ⊚ true ⊚ false 2) Accounting includes the analysis and interpretation of information. ⊚ true ⊚ false 3) Financial accounting focuses on the needs of external users, who get accounting information
from general-purpose financial statements. ⊚ true ⊚ false 4) Internal users of accounting information do not directly manage the organization and have
limited access to its accounting information. ⊚ true ⊚ false 5) Auditors verify the effectiveness of internal controls. ⊚ true ⊚ false 6) External auditors examine financial statements to verify that they are prepared according to
generally accepted accounting principles. ⊚ true ⊚ false 7) External users include lenders, shareholders, customers, and regulators. ⊚ true ⊚ false