Question 1

External users of accounting information do not include:

Accepted Answer

A) Employees 
B) Government 
C) Potential Investors 
D) Financial Institutions 
A) Employees 
B) Government 
C) Potential Investors 
D) Financial Institutions

Question 2

Which accounting concept specifies the practice of crediting closing stock to the trading account?

Accepted Answer

A) Cost 
B) Realization 
C) Going concern 
D) Matching 
A) Cost 
B) Realization 
C) Going concern 
D) Matching

Question 3

Financial accounting is primarily concerned with:

Accepted Answer

A) Recording of financial information relating to activities of the owners of the business enterprise 
B) Providing financial information to assist the management in decision making. 
C) Reporting financial information for external users of accounting reports 
D) Interpretation of financial statements 
A) Recording of financial information relating to activities of the owners of the business enterprise 
B) Providing financial information to assist the management in decision making. 
C) Reporting financial information for external users of accounting reports 
D) Interpretation of financial statements

Question 4

Which of the following statements about differences between financial and management accounting is incorrect?

Accepted Answer

A) Management accounting information is prepared primarily for external parties such as stockholders and creditors. financial accounting is directed at internal users. 
B) Financial accounting is aggregated. management accounting is focused on products and departments. 
C) Management accounting pertains to both past and future items. financial accounting focuses primarily on past transactions and events. 
D) Financial accounting is based on generally accepted accounting practices. management accounting faces no similar constraining factors. 
A) Management accounting information is prepared primarily for external parties such as stockholders and creditors. financial accounting is directed at internal users. 
B) Financial accounting is aggregated. management accounting is focused on products and departments. 
C) Management accounting pertains to both past and future items. financial accounting focuses primarily on past transactions and events. 
D) Financial accounting is based on generally accepted accounting practices. management accounting faces no similar constraining factors.

Question 5

The income earned but not yet received:

Accepted Answer

A) Accrued income 
B) Outstanding Income 
C) Unearned Income 
D) none 
A) Accrued income 
B) Outstanding Income 
C) Unearned Income 
D) none

Question 6

The Convention of Conservatism takes into account

Accepted Answer

A) All prospective profits and prospective losses. 
B) All prospective profits and leaves out prospective losses. 
C) All prospective losses but leaves out prospective profit. 
D) None of these. 
A) All prospective profits and prospective losses. 
B) All prospective profits and leaves out prospective losses. 
C) All prospective losses but leaves out prospective profit. 
D) None of these.

Exam 43: Fundamentals of Accounting: Objectives, Concepts, and Principles

External users of accounting information do not include:

Which accounting concept specifies the practice of crediting closing stock to the trading account?

Financial accounting is primarily concerned with:

Which of the following statements about differences between financial and management accounting is incorrect?

The income earned but not yet received:

The Convention of Conservatism takes into account

Exploring Features and Advantages of Computerized Accounting Systems

Exploring Computerized Accounting Systems and Software

Non-Profit Organizations and Financial Statements

Not-For-Profit Organizations and Financial Accounts

Goodwill and Intangible Assets

Valuation and Calculation of Goodwill

Understanding the Concepts of Lessor, Lessee, and Minimum Rent

Royalty Accounting and Partnership Firms

Accounting

Accounting and Corporate Finance

Accounting and Finance

Depreciation, Share Capital, and Forfeiture of Shares

Financial Statements and Accounting Principles

Insurance Provision and Accounting Standards

Formation and Capital Structure of Public Companies

Share Forfeiture, Debentures, and Sinking Fund

Financial Accounting and Banking

Insurance and General Insurance Companies: Understanding Terms and Concepts

Single Entry System and Company Ownership

Share Capital and Shareholders in a Company

Debentures, Bonds, and Shares

Accounting Concepts and Principles

Accounting Concepts and Practices

Financial Statements and Accounting for Nonprofit Organizations

Hire Purchase, Sale of Goods, and Bookkeeping

Accounting and Bookkeeping

Allocation of Selling Expenses Among Departments Based on Sales

Accounting Concepts and Systems

Accounting and Financial Transactions

Ac Types, Balances, and Entries

Errors, Adjustments, and Expenditures in Accounting

Capitalization, Errors, Cash Book, and Types of Accounts

Revenue Recognition and Expenditure Classification

Depreciation and Asset Provision

Accounting Adjustments and Financial Statement Treatment

Balance Sheet and Profit Loss Account

Accounting and Financial Management

Bills of Exchange, Consignment, and Partnership

Accounting Standards and Joint Ventures

Accounting and Financial Management : Part A

Accounting and Financial Management : Part B

Accounting: Interest, Bill, Partnership Agreement,insurance, Contingent Liability, and Business Resources

Depreciation and Reserves: Understanding the Accounting Concepts

Underwriting and Creditor Questions in Company Affairs

Amalgamation, Llp, and Single Entry System

Single Entry System and Profit Calculation

Accounting for Receipts, Payments, Income, and Expenditure in Consignment and Joint Venture Businesses

Accounting for Co-Venturers, Consignments, and Branches

Accounting Arrangements and Operations for Branches

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