Question

The three steps in the accounting process are identification, recording, and examination. select an option True 2. The accounting process includes the bookkeeping function. select an option True 3. Managerial accounting provides reports to help investors and creditors evaluate a company. select an option True 4. The two most common types of external users are investors and creditors. select an option True 5. Internal users include human resources managers.

Answer 1

Answer:

1. False

2. True

3. False

4. True

5. True

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). Examples of financial statements includes Balance sheet, cash-flow and income statement.

1. False: The three steps in the accounting process are identification, recording, and examination. Actually, the three steps in the accounting process are identification, recording, and communication to the end users such as investors and creditors.

2. True: The accounting process includes the bookkeeping function.

3. False: Managerial accounting provides reports to help investors and creditors evaluate a company. It actually provide reports to the managers of a business firm and as such it is used internally.

4. True: The two most common types of external users are investors and creditors.

5. True: Internal users include human resources managers.