Question

State whether the following statements are true or false :

Accounting is useful only to the owner.

Answer 1

False

Explanation:
Accounting is the process of identifying, measuring, recording, classifying, summarising and communicating the results of the business to users of financial information, i.e. management, owners, investors, creditors, lenders, employees, government etc. Thus, it is useful for all the users of financial information and not only the owner.