True- false questions
1. Accounting is an information and measurement system that identifies records and communicates financial information to users.
2. The primary objective of financial accounting is to provide general-purpose financial statements to help external users analyze and interpret an organization's activities.
3. Unlimited liability is an advantage of all sole proprietorships.
4. Understanding generally accepted accounting principles is not necessary when using and interpreting financial statements.
5. According to the cost principle, it is preferable for managers to report the most current estimate of an asset's value.
6. The International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS) that identify preferred accounting practices.
7. The accounting equation can be restated as: Assets - Equity = Liabilities.
8. The journal is known as the book of final entry because financial statements are prepared from it.
9. Transactions are first recorded in the ledger.
10. Posting is the transfer of the information from each journal entry to the ledger.