Deck 1: Introduction to Accounting

Question 1

The government is always interested in:

A) Information about profits to assess tax due
B) Environmental information
C) Information about corporate social responsibility
D) All of the above

Answer 1

D

Question 2

Accounting is all about numbers and has no practical use.

Answer 2

False

Question 3

Accounting is useful for telling users what has happened.

Answer 3

True

Question 4

Human resources are:

A) Valuable to the business but not owned or fully controlled by the business and as such not reportable as part of the wealth of the business
B) Valuable to the business and recorded in the statement of financial position
C) Valuable to the business but not recorded because they are difficult to quantify

Question 5

Management are the only users of accounting information interested in the efficiency of the organisation.

Question 6

Accounting only applies to businesses.

Question 7

The statement of financial position records:

A) Cash flows for the period
B) Only cash flows relating to assets
C) Sales revenue for the period
D) Assets and liabilities
E) None of the above

Question 8

Accounting information should alway s be:

A) Precise and accurate
B) Free from bias
C) Free of subjective judgements
D) Future oriented

Question 9

All accounting information is numerical.

Question 10

Which of the following best describes accounting?

A) Financial arithmetic
B) A process for recording financial transactions
C) The summarising and recording of useful financial information

Question 11

The statement of financial position is the same as the balance sheet.

Question 12

The income statement records:

A) All cash transactions during the period
B) Only sales and expenses where money has been received or paid out during the period
C) Transactions relating to the operations (trading) of the business

Question 13

All users of accounts have the same needs and priorities.

Question 14

The income statement and the cash flow statement provide the same information.

Question 15

A company's annual report only contains the accounts.

Question 16

Bankers are concerned with:

A) The value of the assets
B) Profitability
C) Liquidity
D) All of the above

Question 17

Only managers use accounts.

Question 18

The cash flow statement records:

A) Only cash flows relating to sales and purchases
B) All cash flows in the period
C) Only cash flows relating to the statement of financial position

Question 19

The income statement records:

A) All cash flows
B) Only cash flows that relate to the operations of the business
C) All transactions
D) Only transactions that relate to the operations of the business