Answer to Question #180140 in Accounting for Tshepiso

Question

Q.1.3 for each of the following statements indicate if the statement is true or false.

Q.1.3.1. management accountants use IFRS to prepare financial statements

Q.1.3.2. one of the essential functions of management is controlling

Q.1.3.3. the general ledger is a table used to summarise similar transactions so as to facilitate fewer postings into the bookkeeping system

Q.1.3.4. according to the business entity rule, the books of account of a business may reflect the personal affairs or wealth of the owner outside of the business

Q.1.3.5. the formal bookkeeping system is always done manually by the owner of the business

Answer 1

Solution:

Q.1.3.1. management accountants use IFRS to prepare financial statements – False.

Q.1.3.2. one of the essential functions of management is controlling – True.

Q.1.3.3. the general ledger is a table used to summarise similar transactions so as to facilitate fewer postings into the bookkeeping system – True.

Q.1.3.4. according to the business entity rule, the books of account of a business may reflect the personal affairs or wealth of the owner outside of the business – False.

Q.1.3.5. the formal bookkeeping system is always done manually by the owner of the business – False.