Question 1

Sustainability reporting focuses on:

Accepted Answer

A) financial aspects. 
B) environmental and social factors. 
C) customer satisfaction. 
D) Both A and C. 
A) financial aspects. 
B) environmental and social factors. 
C) customer satisfaction. 
D) Both A and C. B

Question 2

The planning role within a company is principally undertaken by:

Accepted Answer

A) consultants. 
B) managers. 
C) shareholders. 
D) lenders. 
A) consultants. 
B) managers. 
C) shareholders. 
D) lenders. B

Question 3

The principle whereby each partner is responsible for the business actions of all other partners when the actions are carried out in the normal course of business, is known as:

Accepted Answer

A) the rule in Garner versus Murray. 
B) unlimited liability. 
C) mutual agency. 
D) perpetual life. 
A) the rule in Garner versus Murray. 
B) unlimited liability. 
C) mutual agency. 
D) perpetual life. C

Question 4

The best description of the primary purpose of providing accounting information is:

Accepted Answer

A) to allow the preparation of a taxation return. 
B) to assist users in making informed decisions. 
C) to calculate the bank account balance. 
D) to enable the financial statements to be prepared. 
A) to allow the preparation of a taxation return. 
B) to assist users in making informed decisions. 
C) to calculate the bank account balance. 
D) to enable the financial statements to be prepared.

Question 5

Calculate the cash available at the beginning of the day if cash at the end is $950, receipts from customers are $360 and payments to suppliers are $425.

Accepted Answer

A) $150. 
B) $160. 
C) $340. 
D) $885. 
A) $150. 
B) $160. 
C) $340. 
D) $885.

Question 6

Which accounting report is specifically designed to answer the question, 'What profit was earned in a particular period?'

Accepted Answer

A) Statement of comprehensive income. 
B) Statement of financial position. 
C) Statement of cash flows. 
D) All of the above. 
A) Statement of comprehensive income. 
B) Statement of financial position. 
C) Statement of cash flows. 
D) All of the above.

Question 7

How frequently is the set of financial reports made available for external publication by an entity typically produced?

Accepted Answer

A) fortnightly 
B) yearly 
C) weekly 
D) daily 
A) fortnightly 
B) yearly 
C) weekly 
D) daily

Question 8

Advantages of operating as a sole proprietor are:

Accepted Answer

A) total control by the owner over all decisions. 
B) low start-up costs. 
C) limited liability. 
D) Both A and B. 
A) total control by the owner over all decisions. 
B) low start-up costs. 
C) limited liability. 
D) Both A and B.

Question 9

The business most likely to operate as a sole proprietorship is:

Accepted Answer

A) private hospital. 
B) medical specialist. 
C) bank. 
D) airline. 
A) private hospital. 
B) medical specialist. 
C) bank. 
D) airline.

Question 10

Which financial reports comprise the 'final accounts'?

Accepted Answer

A) statement of cash flows and statement of comprehensive income. 
B) statement of comprehensive income and statement of financial position. 
C) statement of comprehensive income, statement of financial position, statement of cash flows and statement of change in owners' equity. 
D) statement of financial position, statement of cash flows and statement of comprehensive income. 
A) statement of cash flows and statement of comprehensive income. 
B) statement of comprehensive income and statement of financial position. 
C) statement of comprehensive income, statement of financial position, statement of cash flows and statement of change in owners' equity. 
D) statement of financial position, statement of cash flows and statement of comprehensive income.

Question 11

An objective of a business could be:

Accepted Answer

A) financial survival. 
B) maximise profit. 
C) maximise sales. 
D) all of the above. 
A) financial survival. 
B) maximise profit. 
C) maximise sales. 
D) all of the above.

Question 12

Which of these is not generally regarded as a reason for the spate of dubious accounting practices by public companies which led to the enactment of the Sarbanes-Oxley Act in the USA and similar legislation in other jurisdictions?

Accepted Answer

A) Pressure on managers to meet investors' unrealistic expectations for continually rising profits. 
B) Greed by executives. 
C) Lack of accounting standards. 
D) Too rapid growth financed by borrowing, which leads to a liquidity crisis. 
A) Pressure on managers to meet investors' unrealistic expectations for continually rising profits. 
B) Greed by executives. 
C) Lack of accounting standards. 
D) Too rapid growth financed by borrowing, which leads to a liquidity crisis.

Question 13

Calculate the cash available at the end of the day if cash at the beginning is $650, receipts from customers are $400 and payments to suppliers are $300.

Accepted Answer

A) $750 
B) $200. 
C) $750. 
D) $1,400. 
A) $750 
B) $200. 
C) $750. 
D) $1,400.

Question 14

Briefly explain the meaning of each of the four key qualitative characteristics of accounting information: relevance, reliability, comparability and understandability. Also explain how the cost/benefit test acts as a limit on the application of these characteristics.

Accepted Answer

Relevance means that accounting informat

Question 15

As a result of increased globalisation

Accepted Answer

A) there has been less harmonization of accounting rules across countries 
B) accounting rules have a more international reach 
C) users of accounting information are more likely to be based in the same county as the business has its base 
D) accountants need less familiarity with accounting rules of other countries 
A) there has been less harmonization of accounting rules across countries 
B) accounting rules have a more international reach 
C) users of accounting information are more likely to be based in the same county as the business has its base 
D) accountants need less familiarity with accounting rules of other countries

Question 16

The commonly accepted overall financial objective of business can best be summed up as:

Accepted Answer

A) satisfying everyone within the organisation. 
B) promoting good corporate relations. 
C) enhancing wealth. 
D) stabilising profit. 
A) satisfying everyone within the organisation. 
B) promoting good corporate relations. 
C) enhancing wealth. 
D) stabilising profit.

Question 17

Paul commenced business with $150 cash. He purchased goods for $75 that were later sold for $125. The statement of financial position, after the sale, would show a total business wealth of:

Accepted Answer

A) $150. 
B) $50. 
C) $200. 
D) $100. 
A) $150. 
B) $50. 
C) $200. 
D) $100.

Question 18

What does a statement of financial position show?

Accepted Answer

A) the details of how much profit was earned in the period 
B) the cash movements that took place over a particular period 
C) the financial position at the end of the period 
D) the change in financial position over a particular period 
A) the details of how much profit was earned in the period 
B) the cash movements that took place over a particular period 
C) the financial position at the end of the period 
D) the change in financial position over a particular period

Question 19

Knowledge of the objectives or mission of a business will be most useful in assisting users of financial reports in understanding:

Accepted Answer

A) the liquidity position of the business. 
B) why it is taking longer than it should to collect money from accounts receivable. 
C) the financial reporting cycle. 
D) what the business is trying to achieve. 
A) the liquidity position of the business. 
B) why it is taking longer than it should to collect money from accounts receivable. 
C) the financial reporting cycle. 
D) what the business is trying to achieve.

Question 20

What is another name commonly used for the balance sheet?

Accepted Answer

A) profit and loss statemen 
B) statement of financial performance 
C) statement of financial position 
D) statement of change in owners' equity. 
A) profit and loss statemen 
B) statement of financial performance 
C) statement of financial position 
D) statement of change in owners' equity.

Sustainability reporting focuses on:

The planning role within a company is principally undertaken by:

The principle whereby each partner is responsible for the business actions of all other partners when the actions are carried out in the normal course of business, is known as:

The best description of the primary purpose of providing accounting information is:

Calculate the cash available at the beginning of the day if cash at the end is $950, receipts from customers are $360 and payments to suppliers are $425.

Which accounting report is specifically designed to answer the question, 'What profit was earned in a particular period?'

How frequently is the set of financial reports made available for external publication by an entity typically produced?

Advantages of operating as a sole proprietor are:

The business most likely to operate as a sole proprietorship is:

Which financial reports comprise the 'final accounts'?

An objective of a business could be:

Which of these is not generally regarded as a reason for the spate of dubious accounting practices by public companies which led to the enactment of the Sarbanes-Oxley Act in the USA and similar legislation in other jurisdictions?

Calculate the cash available at the end of the day if cash at the beginning is $650, receipts from customers are $400 and payments to suppliers are $300.

Briefly explain the meaning of each of the four key qualitative characteristics of accounting information: relevance, reliability, comparability and understandability. Also explain how the cost/benefit test acts as a limit on the application of these characteristics.

As a result of increased globalisation

The commonly accepted overall financial objective of business can best be summed up as:

Paul commenced business with $150 cash. He purchased goods for $75 that were later sold for $125. The statement of financial position, after the sale, would show a total business wealth of:

What does a statement of financial position show?

Knowledge of the objectives or mission of a business will be most useful in assisting users of financial reports in understanding:

What is another name commonly used for the balance sheet?

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters

Exam 1: Introduction to Accounting

Sustainability reporting focuses on:

The planning role within a company is principally undertaken by:

The principle whereby each partner is responsible for the business actions of all other partners when the actions are carried out in the normal course of business, is known as:

The best description of the primary purpose of providing accounting information is:

Calculate the cash available at the beginning of the day if cash at the end is $950, receipts from customers are $360 and payments to suppliers are $425.

Which accounting report is specifically designed to answer the question, 'What profit was earned in a particular period?'

How frequently is the set of financial reports made available for external publication by an entity typically produced?

Advantages of operating as a sole proprietor are:

The business most likely to operate as a sole proprietorship is:

Which financial reports comprise the 'final accounts'?

An objective of a business could be:

Which of these is not generally regarded as a reason for the spate of dubious accounting practices by public companies which led to the enactment of the Sarbanes-Oxley Act in the USA and similar legislation in other jurisdictions?

Calculate the cash available at the end of the day if cash at the beginning is $650, receipts from customers are $400 and payments to suppliers are $300.

Briefly explain the meaning of each of the four key qualitative characteristics of accounting information: relevance, reliability, comparability and understandability. Also explain how the cost/benefit test acts as a limit on the application of these characteristics.

As a result of increased globalisation

The commonly accepted overall financial objective of business can best be summed up as:

Paul commenced business with $150 cash. He purchased goods for $75 that were later sold for $125. The statement of financial position, after the sale, would show a total business wealth of:

What does a statement of financial position show?

Knowledge of the objectives or mission of a business will be most useful in assisting users of financial reports in understanding:

What is another name commonly used for the balance sheet?

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters