ACC/280 Final Exam

True/False Questions: Each answer is worth .25 points for a total of 3 points.

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...