Question 1

The income statement records:

Accepted Answer

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 
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 D

Question 2

Accounting is all about numbers and has no practical use.

Accepted Answer

A) True 
 B)False  False

Question 3

The government is always interested in:

Accepted Answer

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

Question 4

The cash flow statement records:

Accepted Answer

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 
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 5

Bankers are concerned with:

Accepted Answer

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

Question 6

Accounting is useful for telling users what has happened.

Accepted Answer

A) True 
 B)False

Question 7

All accounting information is numerical.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

All users of accounts have the same needs and priorities.

Accepted Answer

A) True 
 B)False

Question 10

The income statement records:

Accepted Answer

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 
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 11

Only managers use accounts.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Accounting information should alway s be:

Accepted Answer

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

Question 14

A company's annual report only contains the accounts.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best describes accounting?

Accepted Answer

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

Question 16

The statement of financial position records:

Accepted Answer

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 
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 17

Accounting only applies to businesses.

Accepted Answer

A) True 
 B)False

Question 18

Human resources are:

Accepted Answer

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 
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 19

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

Accepted Answer

A) True 
 B)False

The income statement records:

Accounting is all about numbers and has no practical use.

The government is always interested in:

The cash flow statement records:

Bankers are concerned with:

Accounting is useful for telling users what has happened.

All accounting information is numerical.

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

All users of accounts have the same needs and priorities.

The income statement records:

Only managers use accounts.

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

Accounting information should alway s be:

A company's annual report only contains the accounts.

Which of the following best describes accounting?

The statement of financial position records:

Accounting only applies to businesses.

Human resources are:

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

Wealth and the Measurement of Profit

The Measurement of Wealth

The Income Statement and the Cash Flow Statement

Introduction to the Worksheet

Inventory

Amounts Receivable and Amounts Payable

Non-Current Assets, Fixed Assets, and Depreciation

Financing and Business Structures

Cash Flow Statements

Final Accounts and Company Accounts

Financial Statement Analysis

Internal Users and Internal Information

Planning and Control

Cost Behaviour and Cost-Volume-Profit Analysis

Accounting for Overheads and Product Costs

Accounting for Decision-Making: When There Are No Resource Constraints

Accounting for Decision-Making: Resource Constraints and Decisions Which Are Mutually Exclusive

Budgets

Investment Decisions

Management of Working Capital

Filters

Exam 1: Introduction to Accounting

The income statement records:

Accounting is all about numbers and has no practical use.

The government is always interested in:

The cash flow statement records:

Bankers are concerned with:

Accounting is useful for telling users what has happened.

All accounting information is numerical.

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

All users of accounts have the same needs and priorities.

The income statement records:

Only managers use accounts.

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

Accounting information should alway s be:

A company's annual report only contains the accounts.

Which of the following best describes accounting?

The statement of financial position records:

Accounting only applies to businesses.

Human resources are:

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

Wealth and the Measurement of Profit

The Measurement of Wealth

The Income Statement and the Cash Flow Statement

Introduction to the Worksheet

Inventory

Amounts Receivable and Amounts Payable

Non-Current Assets, Fixed Assets, and Depreciation

Financing and Business Structures

Cash Flow Statements

Final Accounts and Company Accounts

Financial Statement Analysis

Internal Users and Internal Information

Planning and Control

Cost Behaviour and Cost-Volume-Profit Analysis

Accounting for Overheads and Product Costs

Accounting for Decision-Making: When There Are No Resource Constraints

Accounting for Decision-Making: Resource Constraints and Decisions Which Are Mutually Exclusive

Budgets

Investment Decisions

Management of Working Capital

Filters