The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:
  • Financial Accounting
  • Managerial Accounting
  • Tax Accounting
  • Forensic Accounting
Which one of the following is not an external user of accounting information?
  • Investor
  • Creditor
  • Manager
  • Customer
Who is known as the father of accounting?
  • Leonardo da Vinci
  • Fra Luca Pacioli
  • Al Khawarizmy
  • Al Mazendarany
The definition "Accounting is the process of identifying, measuring, and communicating economic information." came from which organization?
  • AAA
  • ACPA
  • AICPA
  • PICPA
What is the starting point of the accounting process?
  • Classifying
  • Recording
  • Identifying
  • Communicating
Transactions and events that cannot be measured in money terms are not recorded in the books of accounts.
  • True
  • False
This user of the financial statements is concerned mostly with the liquidity of business.
  • Customers
  • Investors
  • Management
  • Trade Creditors
Who among the following users of financial statements is concerned with the solvency of the business?
  • Customers
  • Lenders
  • Employees
  • Suppliers
A user of financial statement who is concerned with the performance of the business and its ability to give returns.
  • Investor
  • Lender
  • Trade Creditor
  • Customer
if the firm has received a order to sale of goods , it will not be recorded in the books of accounts.
  • True
  • False
last step of accounting process is-
  • classifying
  • summarising
  • recording
  • communicating
how many qualitative characteristics of Accounting Information are there?
  • 3
  • 4
  • 5
  • 6
Which of the following statement is true?
  • Bookkeeping is recording all the business transaction and owner's own transaction
  • Bookkeeping deals with record-keeping and is one only aspect of accounting
  • Bookkeeping and accounting are one and the same since the bookkeeping function is includes in accounting process
  • None of the above
Which of the following business has unlimited liability
  • Sole trader
  • Limited Liability Partnership
  • Private Limited Company
  • Public Limited Company
Who is Luca Pacioli
  • The Father of Accounting
  • The Mother of Accounting
  • Accountant
  • The Brother of Accounting
Which type of business organisation has the following characteristics?- conducts business separate from its owners- the owners have limited liability- the organisation is a taxable entity
  • Sole trader
  • Partnership
  • Company/corporation
  • None of the above
Which of the following would NOT be considered as internal users of accounting data for a company?
  • External auditor
  • CEO of the company
  • President of the company
  • Salesman of the company
What is the system introduced by by Luca Pacioli?
  • Book Keeping
  • Accounting
  • Double Enter
  • Double Entry
Accounting graduates can works as1.External Auditors 2.Lawyers3.Accountants4.Tax Officers
  • 1,3 and 4
  • 1 and 3
  • 1, 2 and 3
  • 3 and 4
Which type of business organization has the following characteristics?is owned by 2 to 20 personhas unlimited liabilityhas no legal obligation to audit the accounts
  • sole trader
  • partnership
  • company
  • none of above
In a partnership, all the partners can involve themselves in the management and decision making process.
  • True
  • False
The process of identify, classify, recording and communicating business transaction is called as book-keeping.
  • True
  • False
Proton Berhad is example of public limited company.
  • True
  • False
A partnership business normally owned by 2 to 50 partners
  • True
  • False
The purpose of accounting is to....
  • communicate information to interested users so that they can make informed decisions
  • communicate financial and non-financial information to interested users so that they can make informed decisions
  • communicate non-financial information to interested users so that they can make informed decisions
Book keeping is mainly concerned with
  • Recording of financial data
  • Designing the systems in recording, classifying, and summarizing the recorded data
  • Interpreting the data for internal and external users
  • None of the above
Which of the following is definition of accounting?
  • It's a process of classifying, recording, and summarizing the business transaction in monetary unit, interpretating the data in assist stakeholders in making decision.
  • It's a process of recording, classifying, and summarizing the business transaction in monetary unit, interpretating the data in assist stakeholders in making decision.
  • It's a process of classifying, recording, and summarizing the business transaction interpreting the data in assist stakeholders in making decision.
The starting point of the accounting process is
  • communicating information to users.
  • identifying economic events.
  • recording economic events.
  • None of these answers are correct.
Users of accounting information include
  • Creditors
  • Lenders
  • Customers
  • All of the above
All of these are type of accounting except?
  • Cost Accounting
  • Auditing
  • Tax Accounting
  • Liability Accounting
Choose the correct match of external users
  • Employees and customer
  • Customer and Management
  • Customer and Creditors
  • Employess and creditors
Why the employees need the accounting information?
  • To lend money
  • To request wage increase and other benefits
  • To make sure the company can setle debts
What is the accounting process no 3?
ca-2 sb-1-Introduction to Accountingimg_no 10.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
What is the accounting process no 5?
ca-2 sb-1-Introduction to Accountingimg_no 11.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
What is the accounting process no 7?
ca-2 sb-1-Introduction to Accountingimg_no 12.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
Which of the following are not the internal user of accounting information?
  • Manager
  • Financial institutions
  • Business owners
  • Current investor
Which of the following is the external user of accounting information?
  • Manager
  • Financial institutions
  • Business owners
  • Current investor
Planning, recording, analyzing, and interpreting financial information
  • accounting
  • ethics
  • transaction
  • revenue
All of the following are functions of Accounting except
  • Decision making
  • Measurement
  • Forecasting
  • Ledger posting
Which of the following is the example of internal users
  • Government
  • Investors
  • Creditors
  • Employees
The accounting process is correctly sequenced as
  • identification, communication, recording.
  • recording, communication, identification.
  • identification, recording, communication.
  • communication, recording, identification.
What is the accounting process no 3?
ca-2 sb-1-Introduction to Accountingimg_no 13.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
What is the accounting process no 5?
ca-2 sb-1-Introduction to Accountingimg_no 14.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
What is the accounting process no 7?
ca-2 sb-1-Introduction to Accountingimg_no 15.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
What is the accounting process no 3?
ca-2 sb-1-Introduction to Accountingimg_no 16.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
What is the accounting process no 5?
ca-2 sb-1-Introduction to Accountingimg_no 17.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
What is the accounting process no 7?
ca-2 sb-1-Introduction to Accountingimg_no 18.jpg
  • Adjustment
  • Ledgers
  • Financial Statement
An Asset is...
  • An asset is a resource currently owned and controlled by a business as a result of a past transaction
  • An asset is a resource owned by a business as a result of a past transaction
  • An asset is something that costs money
Which of the following is an example of an asset?
  • Vehicle
  • Electricity
  • Mortgage
A liability is...
  • obligation of a business as a result of a past transaction
  • Something a business has to pay because of a past event
  • current obligation of a business as a result of a past transaction
Which of the following is an example of a liability?
  • Loan
  • Building
  • Sales
  • Accounts receivable
An Expense is...
  • An expense is defined as a decrease in assets which can be a distribution to the owner
  • An expense is defined as an increase in assets which can be a distribution to the owner
  • An expense is defined as a decrease in assets which is not a distribution to the owner
Which of the following is an example of an expense?
  • Machinery
  • Bank
  • Petrol
Monetary measurement can be described as
  • items that can be given a money value are to be recorded in New Zealand Dollars
  • items that can be given a money value are to be recorded in the currency of the country they have been bought from
The Accounting Entity means...
  • the business is a separate accounting entity from its owner.
  • the business is not a separate accounting entity from its owner.
  • the owner has permission to takes finance from the business and spend it on personal expenses
Which of the following is an example of Income
  • Sales
  • Mortgage
  • Equipment
Who is considered as the father of modern accounting?
  • Augustus
  • Suetonius
  • Queen Victoria
  • Luca Pacioli
It is the preparation and presentation of financial information for internal users in order to have a sound decision-making.
  • Tax Accounting
  • Financial Accounting
  • Cost Accounting
  • Management Accounting
We record ___________in the books of accounts.
  • Financial Transactions
  • Non-financial Transactions
  • Both financial and non-financial transactions
  • Neither financial nor non-financial transactions
Which of the following is not a branch of accounting?
  • Cost Accounting
  • Accounting Education
  • Management Accounting
  • Bookkeeping
Sammy a buys and sells delivery vans. He is operating a...
  • Service business
  • Trading business
A business owned by two or more shareholders, and they are not personally liable for the debts of the business. This is a ...
  • Sole Proprietorship
  • Partnership
  • Limited Liability Partnership
  • Private Limited Company
What is monetary theory?
  • assumes that the business will continue indefinitely.
  • only business transactions that have monetary values are recorded.
  • transactions are recorded only when reliable and verifiable information. (i.e. supported by source document)
  • the life of a business is divided into regular intervals so that financial statements can be prepared.
What is accounting entity theory?
  • assumes that the business will continue indefinitely.
  • transactions should be recorded at their original cost, at the time of the transaction.
  • assumes that the business will continue indefinitely.
  • only transactions that affect the business are recorded, while transactions relating to the owner(s) that do not affect the business are not recorded.
What is objectivity theory?
  • transactions are recorded only when reliable and verifiable information. (i.e. supported by source document)
  • only business transactions that have monetary values are recorded.
  • the life of a business is divided into regular intervals so that financial statements can be prepared.
  • assumes that the business will continue indefinitely.
What type of transaction is the following: where cash is paid or received only at a later date from the time of the transaction?
  • Cash transaction
  • Credit transaction
  • Sales transaction
  • Purchase transaction
This source document serves to acknowledges payment has been received from customers immediately after goods sold or services provided.
  • Remittance advice
  • Receipt
  • Invoice
  • Credit note
This source document informs credit customer of the amount payable for goods sold or services provided.
  • Credit note
  • Debit note
  • Invoice
  • Bank statement
In an invoice, a credit term of 2/10 net 30 was given. What does this credit term mean?
  • cash discount of 10% if paid within 2 days, else pay full invoiced amount after 30 days.
  • cash discount 2% if paid within 30 days, else pay full invoiced amount within 2 days.
  • cash discount 2% if paid within 10 days, else pay full invoiced amount after 30 days.
  • cash discount 2% if paid within 10 days, else pay full invoiced amount before 30 days.
This stakeholder uses business information to decide on the terms of any loans to be given to the business.
  • Owner
  • Lender
  • Government
  • Competitors
What is going concern theory?
  • the life of a business is divided into regular intervals so that financial statements can be prepared.
  • transactions should be recorded at their original cost, at the time of the transaction.
  • assumes that the business will continue indefinitely.
  • only business transactions that have monetary values are recorded.
What is the accounting period theory?
  • the life of a business is divided into regular intervals so that financial statements can be prepared.
  • transactions should be recorded at their original cost, at the time of the transaction.
  • only business transactions that have monetary values are recorded.
  • failure to fulfil an obligation, especially to repay a loan.
Explain the professional ethics of being objective.
  • Is the principle of being honest in all professional relationships.
  • Will let the employees of the business decide on accounting treatment.
  • Will make accounting decision based on the monetary value of the business.
  • Will not let bias or undue influence of others affect his or her professional judgement.
Accounting is important to every business......
  • True
  • False
In accounting, each transaction carries how many entries......
  • One
  • Two
  • Three
  • Four
Which of the following statement is incorrect?
  • Assets - Capital = Liabilities
  • Liabilities + Capital= Assets
  • Liabilities + Assets = Capital
  • Assets - Liabilities = Capital
Which of the following is not an asset?
  • Buildings
  • Cash Balance
  • Debtors
  • Loan from K. Abdul
Which of the following is a liability?
  • Machinery
  • Creditors for goods
  • Motor vehicles
  • cash at bank
Which of the following statements is correct?
  • We paid a creditor by cheque ( - Bank - Accounts payable)
  • A debtor paid us £90 in cash (+ Cash + Accounts receivable)
  • J. Hall lends us £500 by cheque (+ Bank - Loan from Hall)
  • Bought goods on time (+ Inventory + Capital)
Given the following, what is the amount of Capital? Assets: Premises £20,000; Inventory £8,500; Cash £Liabilities: Accounts payable £3,000; Loan from A. Adams £4,000.
  • £21,100
  • £21,600
  • £32,400
  • £21,400
Which of the following is correct?
ca-2 sb-1-Introduction to Accountingimg_no 83.jpg
  • (I) and (II) only
  • (I), (II) and (III) only
  • (II), (III) and (IV) only
  • (I), (II) and (IV) only
What is the balance on the following account on 31 May 2017?
ca-2 sb-1-Introduction to Accountingimg_no 84.jpg
  • A credit balance of £395
  • A debit balance of £380
  • A debit balance of £395
  • There is a nil balance on the account
What would have been the balance on the account of C. De Freitas in MC17 on 19 May 2017?
  • A debit balance of £265
  • A credit balance of £95
  • A credit balance of £445
  • A credit balance of £265
Which of the following best describes a trial balance?
  • It shows the financial position of a business
  • It is a special account
  • It shows all the entries in the books
  • It is a list of balances on the books
Is it true that the trial balance totals should agree?
  • No, there are sometimes good reasons why they differ
  • Yes, except where the trial balance is extracted at the year end
  • Yes, always
  • No, because it is not a statement of financial position
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