TC U12 True/False Questions on Accounting

Accounting involves recording and summarizing an organization’s transactions or business deals.

• True

• False

Transactions include purchases and sales, which are reported in financial statements.

• True

• False

Accounting does not involve summarizing financial data.

• True

• False

In many countries, the accounting profession has no ethical or technical rules.

• True

• False

Accountancy refers to the profession of accounting and often includes professional training and exams.

• True

• False

Bookkeeping is a long-term strategic analysis of a company’s financial data.

• True

• False

Bookkeeping involves the day-to-day recording of transactions.

• True

• False

Financial accounting includes preparing financial statements for shareholders and creditors.

• True

• False

Creditors are people or organizations who owe money to a company.

• True

• False

Management accounting helps managers make plans and decisions using accounting data.

• True

• False