Professional Documents
Culture Documents
SCORE:
PROFESSOR: Ma’am Salve Dulong Cahilo SECTION: BS AIS – 1A DATE: September 3, 2020
Description:
TRUE 1. An audit is the independent examination that ensures the fairness and reliability or the
reports that management submits to users outside the business entity.
TRUE 2. A business transaction is the occurrence of an event or of a condition that must be
recorded.
FALSE 3. One characteristic of a corporation is that its owners are personally liable for any
losses incurred by the business.
TRUE 4. The set of guidelines and procedures that constitute acceptable accounting practice at a
given time is GAAP, which stands for generally accepted accounting process.
TRUE 5. Classification reduces the effects of numerous transactions into useful groups or
categories.
TRUE 6. The liability of corporate stockholders is limited to the amount of their investment.
FALSE 7. The terms bookkeeping and accounting are synonymous.
TRUE 8. A corporation is an economic unit that is legally separate from its owners.