Question

Question 1

Creditors are an example of an internal user of accounting information.

True

False

Question 2

The going concern assumption is the assumption that a company will not be successful in the foreseeable future.

True

False

Question 3

Expenses are the costs of assets that are consumed or services used in the ordinary business activities.

True

False

Question 4

The drawings account decreases owner's equity and has a normal credit balance.

True

False

Question 5

A trial balance may be done at any time during the accounting cycle.

True

False

Answer 1

Question 1 : false: creditor are external user of accounting information.

Question 2 : false: Going concern assumption assumed that the entity has neither the intention, nor the need, to liquidate or curtail materially the scale of its operations.

Question 3 : true : Expenses are the costs of assets that are consumed or services used in the ordinary business activities.

Question 4 : false : drawing account decrease owners equity but has debit balance.

Question 5 : false : A trial balance is prepared after all the journal entries for the period have been recorded.