Question

Indicate whether each of the five statements presented below is true or false.
1. The three steps in the accounting process are identification, recording, and examination.
2. The accounting process includes the bookkeeping function.
3. Managerial accounting provides reports to help investors and creditors evaluate a company.
4. The two most common types of external users are investors and creditors.
5. Internal users include human resources managers.

Answer 1

Answer:

1. The three steps in the accounting process are identification, recording, and examination. (F)

2. The accounting process includes the bookkeeping function. (T)

3. Managerial accounting provides reports to help investors and creditors evaluate a company. (F)

4. The two most common types of external users are investors and creditors. (T)

5. Internal users include human resources managers. (T)

Explanation:

The accounting system provides managers with information necessary for daily operations and also for long-term planning. The development of the most relevant information for specific business decisions and the interpretation of that information is called Management Accounting.