Chapter 01 Accounting: The Language of Business MULTIPLECHOICEQUESTIONS 1) The purpose of accounting is to provide financial information about an economic or social entity. A) True B) False Answer: A Explanation: Diff: 1 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 2) An accounting system is designed to accumulate and classify data about a company's financial activities and summarize them in the general journal. A) True B) False Answer: B Explanation: Diff: 1 Topic: What is Accounting; Defining Accounting Terms Learning Objective: 01-01 Define accounting.; 01-06 Define the accounting terms new to this chapter. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 3) In a sole proprietorship, the owner is NOT responsible for the debts of the business if the company is unable to pay. A) True B) False Answer: B Explanation: Diff: 1 Topic: Busine