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Ch 01 Accounting and the Financial Statements Indicate whether the statement is true or false. 1. Internal users of accounting information include present creditors and management. a. True b. False 2. Creditors use accounting information to evaluate whether to loan money to a company. a. True b. False 3. The purpose of financial reporting is to provide economic information to investors, creditors, and other financial statement users. a. True b. False 4. Investing is the business activity that measures a company's ability to generate cash from its revenue and expense activities. a. True b. False 5. The three main business activities are financing, operating, and investing. a. True b. False 6. The owners of a sole proprietorship, a partnership, and corporations have limited liability. a. True b. False 7. There are more corporations than sole proprietorships and partnerships in the United States.
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