) Chapter F:1 Accounting and the Business Environment Learning Objective F:1-1 1) Accounting is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. Answer: TRUE Diff: 1 LO: F:1-1 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: Why is Accounting Important? (H1) 2) Critical thinking and judgment skills are not necessary for accountants because technology has made the activities routine. Answer: FALSE Explanation: Technology plays an important supporting role in performing routine accounting functions. This allows accountants to have more time to focus on reviewing and evaluating economic activities using critical thinking and judgment. Diff: 1 LO: F:1-1 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: Why is Accounting Important? (H1) 3) Accounting starts with economic activities that accountants review and evaluate using critical thinking and judgment to create useful information that helps individuals make good decisions. Answer: TRUE Diff: 1 LO: F:1-1 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: Why is Accounting Important? (H1) 4) Accounting is referred to as the language of business because it is the method of communicating business information to decision makers. Answer: TRUE Diff: 1 LO: F:1-1 AACSB: Application of knowledge AICPA Functional: Measurement PE Question Type: Concept H2: Why is Accounting Important? (H1)