ACC 280 Final Exam.

True/False Questions

1. Accounting information is used only by external users with a financial interest in a business enterprise.

A.) True

B.) False

1. The dividends account is a subdivision of the returned earnings account and appears as an expense on the income statement.

A.) True

B.) False

1. Information is relevant if it provides a basis for predicting future earnings.

A.) True

B.) False

1. The safeguarding of assets is an objective of a company's system of internal control.

A.) True

B.) False

1. The ledger is merely a bookkeeping device and therefore does not provide much useful data for management.

A.) True

B.) False

1. The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets.

A.) True

B.)...