1) Accounting: A) measures business activities. B) processes data into reports and communicates the data to decision makers. C) is often called the language of business. D) is all of the above. 2) Users of accounting information include investors, creditors, and regulatory bodies. True / False 3) Managerial accounting information is used mainly by external users. True / False 4) An office building is appraised for $250,000 and offered for sale at $260,000. The buyer pays $245,000 for the building. The building should be recorded on the books of the buyer at: A) $250,000 B) $260,000 C) $245,000 D) some other amount 5) Expenses are: A) increases in liabilities resulting from purchasing assets. B) increases in assets resulting from operations. C) increases in retained earnings resulting from operations. D) decreases in retained earnings resulting from operations 6) The word "payable" always signifies a liability. True / False 7) Able Co. has $500,000 in assets and $400,000 in liabilities. Therefore, the equity is $900,000 True / False 8) A journal entry is a record of an event that has a financial impact on the business that can be reliably measured. True / False 9) All but the smallest businesses use the accrual basis of accounting. True / False