Exam 1: Introduction to Accounting

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?

Management reports, compared to financial reports, are:

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

Which statement concerned with establishing the costs and benefits of accounting information is true?

Set out the main purpose of each of the three main financial reports - the statement of comprehensive income, the statement of financial position and the statement of cash flows - and briefly explain how each achieves its purpose.

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

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:

Which of the following are differences between management and financial accounting?

Standards are written from the perspective of:

Which of these is an accounting entity?

Which financial reports comprise the 'final accounts'?

When accounting information has the potential to change decision-making it is said to be:

Which of the following is not an aspect of accounting and finance potential managers need to understand?

What are the four key qualities of accounting information?

Which of the following in not one of the reasons for the increasing turbulence in the business environment?

Budgets are typically set for:

Which group of users is most likely to require accounting information to assess the ability of a business to pay interest and repay a loan?

Sustainability reporting focuses on:

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

Management reports, compared to financial reports, are: