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Activity 3. True or False Instruction: Write TRUE if the statement is correct and FALSE if the statement is incorrect. 1. The ability to turn a need into an opportunity to undertake a business is consistent with the concept of environmental scanning. 2. The cash-in versus cash-out technique of measuring business performance will always result in a correct net profit. 3. A complete set of financial statements has five basic components. 4. The financial statement s are outputs of the accounting process. a 5. The objective of financial statement is to provide information about about the financial position, financial performance, and cash flows of a business that is useful to specific users so that they can make sound decisions. 6. Financial statements provide information about assets, liabilities, equity, income and expenses, cash flows, and contributions of a business with customers and suppliers. 7. Business transactions are limited to interactions of a business with customers and suppliers. 8. There is only one acceptable definition of accounting 9. Accounting is only applicable to business rendering service because accounting is a service activity. 10. Because accounting is systematic, definite techniques and their application require particular skill and expertise.
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