Accounting 1: 1st Pre-test

Accounting is an art which also means that it is a behavioral knowledge involving creativity and skill.

• True

• False

The cash-in versus cash-out technique of measuring business performance will always result in the correct net profit.

• True

• False

Accounting is only applicable to businesses rendering services because accounting is a service activity and a means to an end.

• True

• False

The financial statements are outputs of the accounting process that helps fulfill the stewardship function of the owners and managers.

• True

• False

The ability to turn a need into an opportunity to undertake a business is consistent with the concept of environmental scanning.

• True

• False

All transactions that are monetary and non-monetary in a business are within the scope of Accounting.

• True

• False

Cost Accounting involves the recording of how much the product was produced.

• True

• False

The branch of Accounting that is concerned with the preparation of financial statements is management accounting.

• True

• False

A Public Accountant is a hired employee of the government.

• True

• False

External auditing deals with the professional services offered in public accounting.

• True

• False