_— ~~ 1 » 10. «Accounting is ingrained in our society and it is vital to our economic system.” Do you agree? Explain. Identify and describe the steps in the accounting process. (a) Who are internal users of accounting data? (b) How does accounting provide relevant data to these users? What uses of financial accounting information are made by (a) investors and (b) creditors? “Bookkeeping and accounting are the same.” Do you agree? Explain. Karen Sommers Travel Agency purchased land for $90,000 cash on December 10, 2011. At December 31, 2011, the land’s value has increased to $93,000. What amount should be reported for land on the statement of financial position at December 31, 2011? Explain. What is the definition of the fair value principle? What is the monetary unit assumption? What is the economic entity assumption? What are the three basic forms of business organizations for profit-oriented enterprises?5 ee P's tivities of | E1-1 Urlacher Company performs the following accounting tasks during the year. Analyzing and interpreting information. Classifying economic events. Explaining uses, meaning, and limitations of data. Keeping a systematic chronological diary of events. jeasuring events in dollars and cents. Preparing accounting reports, Reporting information in a standard format, Selecting economic activities relevant to the company. _Summarizing economic events. Accounting is “an information system that identifies, records, and communicates the economic events of an organization to interested users,” Instructions Categorize the accounting tasks performed by Urlacher as relat ng to cil if : recording (R). or communication (C) aspects of accounting, 8 ‘0 either the identification (1)