Financial Statements and Business Decisions True / False Questions 1. A business entity's accounting system creates financial accounting reports which are provided to external decision makers. True False 2. Business managers utilize managerial accounting reports to plan and manage the daily operations. True False 3. The balance sheet includes assets, liabilities, and stockholders' equity as of a point in time. True False 4. Revenue is recognized within the income statement during the period in which cash is collected. True False 5. Total assets are $37,500, total liabilities are $20,000 and common stock is $10,000; therefore,