Question 1

The term that describes differences between actual and budgeted results is:

Accepted Answer

A) divergence. 
B) discrepancy. 
C) mistake. 
D) variance. 
A) divergence. 
B) discrepancy. 
C) mistake. 
D) variance.

Question 2

A business that is not a legal entity, where there is one owner who is fully liable for all debts, is:

Accepted Answer

A) a proprietary company. 
B) a partnership. 
C) a sole proprietorship. 
D) none of the above. 
A) a proprietary company. 
B) a partnership. 
C) a sole proprietorship. 
D) none of the above.

Question 3

The most complete description of the planning process for a business is:

Accepted Answer

A) setting objectives and short-term plans. 
B) setting objectives, long-term plans, and short-term plans. 
C) setting objectives and detailed budgets. 
D) setting long-term objectives and long-term plans. 
A) setting objectives and short-term plans. 
B) setting objectives, long-term plans, and short-term plans. 
C) setting objectives and detailed budgets. 
D) setting long-term objectives and long-term plans.

Question 4

The goal of business in relation to profit is generally taken as:

Accepted Answer

A) profit maximisation. 
B) profit planning. 
C) profit generation. 
D) profit stabilisation. 
A) profit maximisation. 
B) profit planning. 
C) profit generation. 
D) profit stabilisation.

Question 5

The financial statement which shows all the changes in the owners' interest in the net assets of the business is:

Accepted Answer

A) statement of changes in owners' equity. 
B) statement of cash flows. 
C) statement of comprehensive income. 
D) none of the above. 
A) statement of changes in owners' equity. 
B) statement of cash flows. 
C) statement of comprehensive income. 
D) none of the above.

Question 6

Which of the following is not a use of accounting information?

Accepted Answer

A) It helps uses make decisions relating to the business. 
B) It reduces uncertainty about the business's financial position. 
C) It helps answer questions about availability of funds to meet the business's obligations. 
D) It can accurately predict future profits. 
A) It helps uses make decisions relating to the business. 
B) It reduces uncertainty about the business's financial position. 
C) It helps answer questions about availability of funds to meet the business's obligations. 
D) It can accurately predict future profits.

Question 7

The stages of an accounting system are:

Accepted Answer

A) evaluation, processing, output. 
B) identification, recording, analysis, reporting. 
C) setting objectives, planning, analysis. 
D) none of the above. 
A) evaluation, processing, output. 
B) identification, recording, analysis, reporting. 
C) setting objectives, planning, analysis. 
D) none of the above.

Question 8

The statement concerning differences between financial and management accounting which is false is:

Accepted Answer

A) management accounting is less constrained than financial accounting. 
B) managers have much more control over the form and content of their reports. 
C) there is no overlap between management accounting and financial accounting. 
D) the distinction between the two areas, to some extent, reflects differences in access to financial information. 
A) management accounting is less constrained than financial accounting. 
B) managers have much more control over the form and content of their reports. 
C) there is no overlap between management accounting and financial accounting. 
D) the distinction between the two areas, to some extent, reflects differences in access to financial information.

Question 9

Which statement is true?

Accepted Answer

A) The statement of cash flows explains the changes between the statement of comprehensive income and the statement of financial position. 
B) The statement of financial position links two statements of comprehensive income. 
C) The statement of cash flows summarises the movements in the bank account over an accounting period. 
D) None of the statements is true. 
A) The statement of cash flows explains the changes between the statement of comprehensive income and the statement of financial position. 
B) The statement of financial position links two statements of comprehensive income. 
C) The statement of cash flows summarises the movements in the bank account over an accounting period. 
D) None of the statements is true.

Question 10

Management reports, compared to financial reports, are:

Accepted Answer

A) summarised. 
B) aggregated. 
C) standardised. 
D) detailed. 
A) summarised. 
B) aggregated. 
C) standardised. 
D) detailed.

Question 11

The planning and control process within an entity means that:

Accepted Answer

A) business can respond to variances between plans and actual performance. 
B) business is only concerned with actual performance. 
C) plans are followed rigidly at all times. 
D) plans and actual performance do not vary. 
A) business can respond to variances between plans and actual performance. 
B) business is only concerned with actual performance. 
C) plans are followed rigidly at all times. 
D) plans and actual performance do not vary.

Question 12

Which of these is not one of the key qualities of accounting information?

Accepted Answer

A) Timeliness. 
B) Reliability. 
C) Control. 
D) Relevance. 
A) Timeliness. 
B) Reliability. 
C) Control. 
D) Relevance.

Question 13

Another name for the statement of comprehensive income is:

Accepted Answer

A) statement of financial position. 
B) balance sheet. 
C) statement of change in owners' equity. 
D) statement of financial performance. 
A) statement of financial position. 
B) balance sheet. 
C) statement of change in owners' equity. 
D) statement of financial performance.

Question 14

Why do businesses tend to resist providing forecast data to those outside the organisation?

Accepted Answer

A) because it is too costly 
B) because it is too difficult 
C) because the data is inaccurate 
D) because of the fear of the loss of competitive advantage 
A) because it is too costly 
B) because it is too difficult 
C) because the data is inaccurate 
D) because of the fear of the loss of competitive advantage

Question 15

Financial accounting reports concentrate on:

Accepted Answer

A) current events. 
B) current and future events. 
C) past events. 
D) future events. 
A) current events. 
B) current and future events. 
C) past events. 
D) future events.

Question 16

Business managers, even if not accountants, need familiarity with basic accounting information to help with decisions about

Accepted Answer

A) what products to sell. 
B) whether or not to invest in certain projects. 
C) whether to expand or cease operations. 
D) All of the above are correct. 
A) what products to sell. 
B) whether or not to invest in certain projects. 
C) whether to expand or cease operations. 
D) All of the above are correct.

Question 17

What is the primary goal of management accounting?

Accepted Answer

A) provide information that can be quantified in monetary terms. 
B) provide information that improves the quality of managers' decisions. 
C) provide information that conforms to the accounting regulations. 
D) provide information to shareholders. 
A) provide information that can be quantified in monetary terms. 
B) provide information that improves the quality of managers' decisions. 
C) provide information that conforms to the accounting regulations. 
D) provide information to shareholders.

Question 18

What are the four key qualities of accounting information?

Accepted Answer

A) relevance, reliability, comparability, and understandability. 
B) identification, analysis, reliability, and timeliness. 
C) planning, control, comparability and analysis 
D) understandability, identification, analysis, and relevance. 
A) relevance, reliability, comparability, and understandability. 
B) identification, analysis, reliability, and timeliness. 
C) planning, control, comparability and analysis 
D) understandability, identification, analysis, and relevance.

Question 19

Control is best defined as:

Accepted Answer

A) making events conform to plan. 
B) making the directors perform according to plan. 
C) making the employees work harder. 
D) giving orders. 
A) making events conform to plan. 
B) making the directors perform according to plan. 
C) making the employees work harder. 
D) giving orders.

Question 20

The statement concerning the key qualities of accounting information that is untrue is:

Accepted Answer

A) the qualities are frequently in conflict. 
B) relevant information may help to predict future events or confirm past events. 
C) relevant information often contains a degree of subjectivity. 
D) None of the statements is untrue, i.e., all are true statements. 
A) the qualities are frequently in conflict. 
B) relevant information may help to predict future events or confirm past events. 
C) relevant information often contains a degree of subjectivity. 
D) None of the statements is untrue, i.e., all are true statements.

The term that describes differences between actual and budgeted results is:

A business that is not a legal entity, where there is one owner who is fully liable for all debts, is:

The most complete description of the planning process for a business is:

The goal of business in relation to profit is generally taken as:

The financial statement which shows all the changes in the owners' interest in the net assets of the business is:

Which of the following is not a use of accounting information?

The stages of an accounting system are:

The statement concerning differences between financial and management accounting which is false is:

Which statement is true?

Management reports, compared to financial reports, are:

The planning and control process within an entity means that:

Which of these is not one of the key qualities of accounting information?

Another name for the statement of comprehensive income is:

Why do businesses tend to resist providing forecast data to those outside the organisation?

Financial accounting reports concentrate on:

Business managers, even if not accountants, need familiarity with basic accounting information to help with decisions about

What is the primary goal of management accounting?

What are the four key qualities of accounting information?

Control is best defined as:

The statement concerning the key qualities of accounting information that is untrue is:

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

The term that describes differences between actual and budgeted results is:

A business that is not a legal entity, where there is one owner who is fully liable for all debts, is:

The most complete description of the planning process for a business is:

The goal of business in relation to profit is generally taken as:

The financial statement which shows all the changes in the owners' interest in the net assets of the business is:

Which of the following is not a use of accounting information?

The stages of an accounting system are:

The statement concerning differences between financial and management accounting which is false is:

Which statement is true?

Management reports, compared to financial reports, are:

The planning and control process within an entity means that:

Which of these is not one of the key qualities of accounting information?

Another name for the statement of comprehensive income is:

Why do businesses tend to resist providing forecast data to those outside the organisation?

Financial accounting reports concentrate on:

Business managers, even if not accountants, need familiarity with basic accounting information to help with decisions about

What is the primary goal of management accounting?

What are the four key qualities of accounting information?

Control is best defined as:

The statement concerning the key qualities of accounting information that is untrue is:

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