Judge each accounting claim

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Only a certified public accountant can issue the auditor's opinion on a firm's financial statements.

2. Statement is true

   Yes

   Statement

   Auditing means reviewing the records used to prepare financial statements.

3. Statement is true

   No

   Statement

   Private accountants serve many client organizations on a fee basis.

4. Statement is true

   No

   Statement

   Managerial accounting prepares reports for people outside the company.

5. Statement is true

   No

   Statement

   Bookkeeping is a broader activity than accounting.

6. Statement is true

   Yes

   Statement

   Financial accounting reports are used by lenders, investors and government agencies.

Instructions

Tap true or false for each statement.

Explanation