Chapter 1 – Introduction to accounting TRUE/FALSE 1. An objective of accounting is to provide information to predict and evaluate the going concern of an entity. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: What is accounting 2. Accounting information is always quantitative and objective. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: What is accounting 3. Stewardship is the term used to refer to management’s role in protecting an entity’s economic resources from theft, fraud and wastage. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: For what purpose is accounting used? 4. Management is an external user of accounting information. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Who uses accounting information? 5. The balance sheet is an example of a management accounting report. ANS: F PTS: 1 AACSB: Knowledge, Analytical TOP: Who uses accounting information? 6. The statement of comprehensive income is an example of a financial accounting report. ANS: T PTS: 1 AACSB: Knowledge, Analytical TOP: Who uses accounting information? 7. The difference between management accounting and financial accounting is that management accounting focuses on external users whereas financial accounting focuses on internal users. ANS: F PTS: 1 AACSB: Knowledge, Analytical