ACC117 True or False

Accounting process includes the process of analysing and interpreting the information

recorded in the books of accounts.

• True

• False

The accounting process involves recording non-quantifiable economic events.

• True

• False

Accounting primarily protects the interest of outsiders dealing with organization in

various capacities.

• True

• False

A business organisation as a separate legal entity is a sole proprietorship.

• True

• False

It is on the basis of going concern concept that the assets are always valued at market

value.

• True

• False

According to money measurement concept, the efficiency of the top management of the

business must be clearly recorded in the books of accounts

• True

• False

Faithful presentation means the accounting information recorded must be neutral,

complete and free from errors.

• True

• False

The comparison of the results of one accounting period with that in the past is possible

when the business maintains consistency in adopting accounting policies.

• True

• False

The sum of the assets and liabilities of a business always equals to the investment of a

business owner

• True

• False

When an owner withdraws cash from the business, the transaction affects both assets

and owners’ equity.

• True

• False