True or False 1. Financial accounting is the area of accounting aimed at serving external users by providing them with general- purpose financial statements. Answer 2. Internal users of accounting information do not directly run the organization and have limited access to its accounting information. Answer .... 3. Internal users include lenders, shareholders, brokers and nonexecutive employees. Answer ...... 4. Management is not responsible for implementing internal controls and does not need to issue a report on internal controls Answer 5 In the partnership form of business, the owners are called stockholders. Answer 6. The balance sheet shows a company's net income or loss over a period of time. Answer 7. A partnership must pay an additional business income tax. Answer 8. Objectivity means that financial information is supported by independent, unbiased evidence; it demands more than a person's opinion. Answer ..... 9. The International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS) that identify preferred accounting practices. The four common forms of business ownership include sole proprietorship, partnership, corporation, and non-profit. Answer 11. Liabilities are the owner's claim on assets. Answer ....... 12 Owner withdrawals are subtracted as expenses in the calculation of net income Answer 13. Owner withdrawals are subtracted as expenses in the calculation of net income Answer.

1. True or False
1. Financial accounting is the area of accounting aimed at serving external users by providing them with general-
purpose financial statements.
Answer
2. Internal users of accounting information do not directly run the organization and have limited access to its
accounting information.
Answer ....
3. Internal users include lenders, shareholders, brokers and nonexecutive employees.
Answer ......
4. Management is not responsible for implementing internal controls and does not need to issue a report on internal
controls
Answer
5 In the partnership form of business, the owners are called stockholders.
Answer
6. The balance sheet shows a company's net income or loss over a period of time.
Answer
7. A partnership must pay an additional business income tax.
Answer
8. Objectivity means that financial information is supported by independent, unbiased evidence;
it demands more than a person's opinion.
Answer .....
9. The International Accounting Standards Board (IASB) issues International Financial
Reporting Standards (IFRS) that identify preferred accounting practices.
The four common forms of business ownership include sole proprietorship, partnership, corporation, and non-profit.
Answer
11. Liabilities are the owner's claim on assets.
Answer .......

2. 12 Owner withdrawals are subtracted as expenses in the calculation of net income
Answer
13. Owner withdrawals are subtracted as expenses in the calculation of net income
Answer