Question 1

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 D

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

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 B

Question 4

The characteristic of accounting information that requires financial reports to be expressed as clearly as possible and to be capable of being understood by those they are addressed to, is known as:

Accepted Answer

A) understandability. 
B) reliability. 
C) cost versus benefit test. 
D) relevance. 
A) understandability. 
B) reliability. 
C) cost versus benefit test. 
D) relevance.

Question 5

The best explanation of relevance is:

Accepted Answer

A) ensuring the benefit of the information is greater than the cost of providing it. 
B) ensuring that information is expressed as clearly as possible. 
C) ensuring that information is useful for decision-making. 
D) ensuring that information is free from bias. 
A) ensuring the benefit of the information is greater than the cost of providing it. 
B) ensuring that information is expressed as clearly as possible. 
C) ensuring that information is useful for decision-making. 
D) ensuring that information is free from bias.

Question 6

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 7

The ALTC's Learning and Teaching Academic Standards Statement for Accounting does NOT include which of the following threshold learning outcomes?

Accepted Answer

A) Independence 
B) Judgement 
C) Knowledge 
D) Application skills 
A) Independence 
B) Judgement 
C) Knowledge 
D) Application skills

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

Management accounting reports tend to contain:

Accepted Answer

A) both financial and non-financial information. 
B) financial information only. 
C) information that complies with the accounting standards. 
D) non-financial information only. 
A) both financial and non-financial information. 
B) financial information only. 
C) information that complies with the accounting standards. 
D) non-financial information only.

Question 10

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 11

Which of the following is false?

Accepted Answer

A) Accounting is conducted in isolation from other disciplines. 
B) Accounting can be applied at different levels. 
C) Accounting is concerned with the provision of information. 
D) Topics included in the body of accounting knowledge include auditing and assurance, taxation law and economics. 
A) Accounting is conducted in isolation from other disciplines. 
B) Accounting can be applied at different levels. 
C) Accounting is concerned with the provision of information. 
D) Topics included in the body of accounting knowledge include auditing and assurance, taxation law and economics.

Question 12

Financial accounting reports, compared to management reports, tend to be:

Accepted Answer

A) general purpose. 
B) qualitative. 
C) unstructured. 
D) detailed. 
A) general purpose. 
B) qualitative. 
C) unstructured. 
D) detailed.

Question 13

Which of the following is the most important function of an accounting system?

Accepted Answer

A) Provide information for decision-making, planning and control 
B) Keep employees from embezzling funds 
C) Prepare accounting reports 
D) Collect and record data 
A) Provide information for decision-making, planning and control 
B) Keep employees from embezzling funds 
C) Prepare accounting reports 
D) Collect and record data

Question 14

The three most common types of structures used by businesses in Australia are:

Accepted Answer

A) partnership, limited company, association. 
B) sole proprietor, partnership, limited company. 
C) partnership, private company, trust. 
D) sole proprietor, limited company, co-operative. 
A) partnership, limited company, association. 
B) sole proprietor, partnership, limited company. 
C) partnership, private company, trust. 
D) sole proprietor, limited company, co-operative.

Question 15

Which statement is incorrect?

Accepted Answer

A) A budget defines precise targets, e.g., level of sales, levels of inventory. 
B) A budget is expressed in monetary terms. 
C) A budget is a short-term plan. 
D) A budget summarises past information. 
A) A budget defines precise targets, e.g., level of sales, levels of inventory. 
B) A budget is expressed in monetary terms. 
C) A budget is a short-term plan. 
D) A budget summarises past information.

Question 16

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 17

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.

Question 18

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 19

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 20

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

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.

The planning role within a company is principally undertaken by:

What is the primary goal of management accounting?

The characteristic of accounting information that requires financial reports to be expressed as clearly as possible and to be capable of being understood by those they are addressed to, is known as:

The best explanation of relevance is:

Another name for the statement of comprehensive income is:

The ALTC's Learning and Teaching Academic Standards Statement for Accounting does NOT include which of the following threshold learning outcomes?

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

Management accounting reports tend to contain:

An objective of a business could be:

Which of the following is false?

Financial accounting reports, compared to management reports, tend to be:

Which of the following is the most important function of an accounting system?

The three most common types of structures used by businesses in Australia are:

Which statement is incorrect?

The stages of an accounting system are:

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

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

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

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

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Recording Transactionsthe Journal and Ledger Accounts

Accounting Systems and Internal Control

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

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Planning and Budgeting

Capital Investment Decisions

Filters

Exam 1: Introduction to Accounting

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.

The planning role within a company is principally undertaken by:

What is the primary goal of management accounting?

The characteristic of accounting information that requires financial reports to be expressed as clearly as possible and to be capable of being understood by those they are addressed to, is known as:

The best explanation of relevance is:

Another name for the statement of comprehensive income is:

The ALTC's Learning and Teaching Academic Standards Statement for Accounting does NOT include which of the following threshold learning outcomes?

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

Management accounting reports tend to contain:

An objective of a business could be:

Which of the following is false?

Financial accounting reports, compared to management reports, tend to be:

Which of the following is the most important function of an accounting system?

The three most common types of structures used by businesses in Australia are:

Which statement is incorrect?

The stages of an accounting system are:

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

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

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

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

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Recording Transactionsthe Journal and Ledger Accounts

Accounting Systems and Internal Control

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

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Planning and Budgeting

Capital Investment Decisions

Filters