Accounting is a system of maintaining records of a company's operations and communicating this information to decision makers.

101. Accounting is a system of maintaining records of a company's operations and communicating this information to decision makers.
TRUE

102. Accounting information is used by investors to decide whether to invest in a company's stock.
TRUE

103. Accounting information is used by creditors to decide whether to invest in a company's stock.
FALSE

Creditors lend money to a company.

104. The primary functions of financial accounting are to measure business activities of a company and to communicate those measurements to internal parties for decision-making purposes.
FALSE

Financial accounting primarily serves to provide information to external parties.

105. Financing activities are transactions involving externals sources of funding.
TRUE

106. Investing activities include the purchase and sale of (1) long-term resources and (2) any resources not directly related to a company's normal operations.
TRUE

107. Operating activities include transactions that relate to the primary operations of the company.
TRUE

108. A corporation is an entity that is legally separate from its owners.
TRUE

109. Cash, inventory, supplies, and buildings are examples of liabilities.
FALSE

These are examples of assets.

110. Amounts owed to suppliers, workers, governments, and utility companies are examples of liabilities.
TRUE