Question

State whether the following statements are true or false :
(i) Accounting is the language of business.
(i) Accounting is helpful in raising loans.
(iii) Accounting is not accepted as evidence in legal matters.
(iv) Management of an enterprise is internal user of its accounting information.
(v) Accounting makes a record of qualitative aspects of business.
(vi)Accounting is a service function.
(vii) Accounting involves only the recording of business transactions.
(viii) Accounts are prepared on the basis of historical costs.
(ix) Only those transactions are recorded in accounting which can be expressed in terms of
money.
(x) Book-keeping starts where accounting ends.
(xi) Creditors are external users of accounting information.
(xii) A creditor would use an entity’s financial report to determine whether or not credit may be
granted to the firm.
(xiii) Accounting may be affected by window dressing.

Answer 1

Answer:

All are true but x and xiii is false