Chapter 1, Problem 1DIE

1.

To determine

Accounting: The process of accounting starts with identification of business transactions quantitative in nature, then further identified transactions are recorded, classified and summarized. After summarization, all data is analyzed to calculate the profit and determine the financial position of the organization. This process ends with the communication of analyzed information to its users.

To identify: Whether the given statement is true or false.

The three steps in the accounting process are identification, recording and examination.

2.

To determine

To identify: Whether the given statement is true or false.

The accounting process includes the bookkeeping functions.

3.

To determine

To identify: Whether the given statement is true or false.

Managerial accounting provides reports to help investors and creditors evaluate a company.

4.

To determine

To identify: Whether the given statement is true or false.

The two most common types of external users are investors and creditors.

5.

To determine

To identify: Whether the given statement is true or false.

Internal users include human resources managers.