In current practice, accounting provides only quantitative information that is useful in making economic decisions. External users are those who do not have the authority to demand financial reports tailored to their specific needs. Under the stable monetary unit assumption,

In current practice, accounting provides only quantitative information that is useful in making economic decisions. External users are those who do not have the authority to demand financial reports tailored to their specific needs. Under the stable monetary unit assumption,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following statements is
true? *
In current practice, accounting provides
only quantitative information that is useful
in making economic decisions.
External users are those who do not have
the authority to demand financial reports
tailored to their specific needs.
Under the stable monetary unit assumption,
the owners of the business and the
business are viewed as a single reporting
entity. Therefore, the personal transactions
of the owners are recorded in the books of
accounts.
The practice of accountancy in the
Philippines is regulated under R.A. 9892.

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