Question

These are all true or false

1. Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

2. General accounting principles stem from long-used accounting practices.

3. The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

4. The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

5. Internal users include lenders, shareholders, brokers and nonexecutive employees.

6. An accounting system captures relevant data about transactions and then classifies, records, and reports data.

7. Regulators often have legal authority over certain activities of organizations.

8. The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

9. A partnership is a business owned by two or more people.

10. Identifying the proper ethical path is usually easy.

11. According to the measurement (cost) principle, it is necessary for managers to report an approximation of an asset's market value upon purchase.

12. Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

Answer 1

1 . Planning has to be done for each business activity whether it is operating investing and financing. Hence, this statement is true.

2 . General accounting principles stems from long used accounting practices and thus it helps in setting accounting principles .

Thus this statment is true.

3. For fraud triangle there is existence of opportunity , pressure and rationalization. Hence this statement is true.

4 . Business entity principle means business and owners are separate ans even different different businesses are also separate entity .

This, given statement is false.

5. Lenders , investors and brokers are the external users of financial statements. Internal users comprises of employees of organization etc. Thus, given statement is false.

6. Accounting system captured relevant data about transactions and classifies and reports data. Hence this statement is true.

7 . Yes regulators have certain legal authority over certain areas of business. Hence this statemrnt is true.

8. Three common form of business owners in includes sole proprietorship, partnership and corporation. Thus, given statement is false as not for profit is not a common business model.

9. Partnership is a business which is owned by two or more people. Hence, statement is true.

10 . Identifying a proper ethical path is not easy. Hence, the statement that identifying ethical path is easy is false.

11 . According to measurement principle asserbmust be measured initially at the cost for which it hasn't been purchsed. Ence statement given is false.

12. Record keeping and bookkeeping is recording of transaction a d itnis just one part of accounting. Hence, this statement is true.