An accounting transaction may impact only a single financial statement or multiple financial statements. True False

true or false. No material misstatements are allowed if financial statements are to called fairly presented?

The accounting concept that requires financial information to be supported by independent, unbiased evidence is: a. Verifiable objective principle. b. Conservatism convention concept. c. Business entity assumption. d. Materiality convention concept.

Accounting data does not consider off-balance sheet items, such as unused commitments of a firm. O True O False

An item or information is considered MATERIAL in accounting if a. Its non-disclosure would influence the decisions of the users of financial statements b. Its non-disclosure would not influence the decisions of the users of financial statements c. Both of the options d. None of the options

This kind of errors happens in the event of not knowing the accounting rules properly or not knowing the difference between the capital expenditure and revenue expenditure. a. Error of Commission b. Errors of Complete Omission c. Errors of Principle d. Errors of Transposition

Which of the following statements is false? a.Financial accounting must conform to GAAP. b.Managerial accounting sometimes relies on past information. c.Managerial accounting does not need to conform to GAAP. d.There is no overlap between financial and managerial accounting.

Auditors commonly allocate materiality to balance sheet accounts rather than income statement accounts because most income statement misstatements have a effect on the balance sheet. Select one: a. equal b. undetermined C. increased d. reduced O O O