Question 1

Which of the following statements is true?

Accepted Answer

A)  Accounting information for decision making is concerned with past transactions. 
B)  Internal and external users of accounting information usually require similar information. 
C)  Non-accounting information is always more important in decision making than accounting information. 
D)  Many factors considered in the decision-making process are estimates of future events. 
A)  Accounting information for decision making is concerned with past transactions. 
B)  Internal and external users of accounting information usually require similar information. 
C)  Non-accounting information is always more important in decision making than accounting information. 
D)  Many factors considered in the decision-making process are estimates of future events. D

Question 2

How many of the following decisions would be made by external as opposed to internal decision makers: choosing which products to produce, determining how much is owing to creditors, assessing an application for a loan, and employing additional staff?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4 A

Question 3

Accounting can be divided into two broad branches. They are:

Accepted Answer

A)  public and private. 
B)  commercial and non-commercial. 
C)  management and financial. 
D)  taxation and management. 
A)  public and private. 
B)  commercial and non-commercial. 
C)  management and financial. 
D)  taxation and management. C

Question 4

The consideration of economic factors is very important in the decision-making process. Which of the following must also be considered?

Accepted Answer

A)  Environmental factors such as pollution. 
B)  All of these factors must be considered. 
C)  Government policy on trade. 
D)  Social factors such as the impact on unemployment. 
A)  Environmental factors such as pollution. 
B)  All of these factors must be considered. 
C)  Government policy on trade. 
D)  Social factors such as the impact on unemployment.

Question 5

The initials ICAA stand for:

Accepted Answer

A)  Institute of Chartered Accountants in Australia. 
B)  Institute of Commercial Accounting Associates. 
C)  International Committee of Advanced Accounting. 
D)  Institute of Commercial Accountants in Australia. 
A)  Institute of Chartered Accountants in Australia. 
B)  Institute of Commercial Accounting Associates. 
C)  International Committee of Advanced Accounting. 
D)  Institute of Commercial Accountants in Australia.

Question 6

The recording or recording-keeping process involves measuring and recording business __________

Accepted Answer

A)  contracts. 
B)  transactions. 
C)  deals. 
D)  agreements. 
A)  contracts. 
B)  transactions. 
C)  deals. 
D)  agreements.

Question 7

Organisations such as hospitals, clubs, charities, and local, state and federal governments employ accountants with specialised knowledge in the area of:

Accepted Answer

A)  cost accounting. 
B)  accounting information systems. 
C)  insolvency and administration. 
D)  non-for-profit accounting. 
A)  cost accounting. 
B)  accounting information systems. 
C)  insolvency and administration. 
D)  non-for-profit accounting.

Question 8

Assurance services which assess an entity's compliance with environmental requirements are an example of:

Accepted Answer

A)  Sustainability audits 
B)  Electronic commerce 
C)  Business performance management 
D)  Information systems reliability 
A)  Sustainability audits 
B)  Electronic commerce 
C)  Business performance management 
D)  Information systems reliability

Question 9

In the accounting profession the initials CPA stand for:

Accepted Answer

A)  Complying Private Accountant. 
B)  Company Professional Accountant. 
C)  Certified Professional Accountant. 
D)  Certified Practising Accountant. 
A)  Complying Private Accountant. 
B)  Company Professional Accountant. 
C)  Certified Professional Accountant. 
D)  Certified Practising Accountant.

Question 10

Accounting work that deals with the collection, allocation and control of costs of producing specific products and services is known as:

Accepted Answer

A)  general accounting. 
B)  budgeting. 
C)  cost accounting 
D)  administration accounting. 
A)  general accounting. 
B)  budgeting. 
C)  cost accounting 
D)  administration accounting.

Question 11

One of the major professional accounting bodies in Australia is:

Accepted Answer

A)  CIMA. 
B)  ACCA. 
C)  CPA Australia. 
D)  NZICA. 
A)  CIMA. 
B)  ACCA. 
C)  CPA Australia. 
D)  NZICA.

Question 12

How many of the following are differences between management and financial accounting?
$\bullet$External verification of reports
$\bullet$Frequency of reports
$\bullet$The content and format of reports
$\bullet$The users of reports

Accepted Answer

A)  One 
B)  Two 
C)  Three 
D)  Four 
A)  One 
B)  Two 
C)  Three 
D)  Four

Question 13

Communication is the final stage of the accounting process and is considered to require the most extensive:

Accepted Answer

A)  Measurement 
B)  Record-keeping 
C)  Training, business experience and professional judgement 
D)  Planning 
A)  Measurement 
B)  Record-keeping 
C)  Training, business experience and professional judgement 
D)  Planning

Question 14

Examples of assurance services provided by auditors include:

Accepted Answer

A)  Assessment of business risk 
B)  Security of electronic commerce systems 
C)  Comparisons of entity's performance to that of its competitors. 
D)  All of these options. 
A)  Assessment of business risk 
B)  Security of electronic commerce systems 
C)  Comparisons of entity's performance to that of its competitors. 
D)  All of these options.

Question 15

The depreciation of machinery used in the production of goods is which of the following?
$$\begin{array}{l}
&\text { Iratemal transaction } & \text { Extenpl trarisaction }\
 a.  & \text { Yes } & \text { Yes } \
 b.  & \text { No } & \text { No } \
 c.  & \text { No } &  \text { yes } \
d.  & \text { Yes } & \text { No }
\end{array}$$

Accepted Answer

The answer of The depreciation of machinery used in the...

Question 16

Which type of accounting is concerned with providing information to external decision makers of the organisation?

Accepted Answer

A)  financial 
B)  management 
C)  private 
D)  public 
A)  financial 
B)  management 
C)  private 
D)  public

Question 17

Which of the following is not a main area of practise for accountants?

Accepted Answer

A)  Public accounting. 
B)  Private accounting. 
C)  Commercial accounting. 
D)  Not-for-profit accounting. 
A)  Public accounting. 
B)  Private accounting. 
C)  Commercial accounting. 
D)  Not-for-profit accounting.

Question 18

How many of the following decisions would be made by internal as opposed to external decision makers: resource requirements for production, product pricing, cash management, and monitoring compliance with environmental regulators?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 19

Which of the following has been the most influential in redefining the role of accountants as analysts and decision makers rather than as mainly number-crunchers?

Accepted Answer

A)  The increasing demands of society for non-financial information. 
B)  The globalisation of business. 
C)  An increase in business regulations. 
D)  The development of information and communications technology. 
A)  The increasing demands of society for non-financial information. 
B)  The globalisation of business. 
C)  An increase in business regulations. 
D)  The development of information and communications technology.

Question 20

Which of the following statements about financial accounting is true?

Accepted Answer

A)  Information is prepared for external users. 
B)  Information is prepared for internal users. 
C)  Information is provided to assist management in their planning, controlling and decision-making responsibilities. 
D)  Includes activities such as budgeting. 
A)  Information is prepared for external users. 
B)  Information is prepared for internal users. 
C)  Information is provided to assist management in their planning, controlling and decision-making responsibilities. 
D)  Includes activities such as budgeting.

Exam 1: Decision Making and the Role of Accounting

Which of the following statements is true?

How many of the following decisions would be made by external as opposed to internal decision makers: choosing which products to produce, determining how much is owing to creditors, assessing an application for a loan, and employing additional staff?

Accounting can be divided into two broad branches. They are:

The consideration of economic factors is very important in the decision-making process. Which of the following must also be considered?

The initials ICAA stand for:

The recording or recording-keeping process involves measuring and recording business __________

Organisations such as hospitals, clubs, charities, and local, state and federal governments employ accountants with specialised knowledge in the area of:

Assurance services which assess an entity's compliance with environmental requirements are an example of:

In the accounting profession the initials CPA stand for:

Accounting work that deals with the collection, allocation and control of costs of producing specific products and services is known as:

One of the major professional accounting bodies in Australia is:

How many of the following are differences between management and financial accounting? ∙\bullet∙ External verification of reports ∙\bullet∙ Frequency of reports ∙\bullet∙ The content and format of reports ∙\bullet∙ The users of reports

Communication is the final stage of the accounting process and is considered to require the most extensive:

Examples of assurance services provided by auditors include:

The depreciation of machinery used in the production of goods is which of the following? Iratemal transaction Extenpl trarisaction a. Yes Yes b. No No c. No yes d. Yes No

Which type of accounting is concerned with providing information to external decision makers of the organisation?

Which of the following is not a main area of practise for accountants?

How many of the following decisions would be made by internal as opposed to external decision makers: resource requirements for production, product pricing, cash management, and monitoring compliance with environmental regulators?

Which of the following has been the most influential in redefining the role of accountants as analysts and decision makers rather than as mainly number-crunchers?

Which of the following statements about financial accounting is true?

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation, Operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation, Disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Accounting for Manufacturing

Cost Accounting Systems

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis, Profitability Analysis and Capital Budgeting

Filters

How many of the following are differences between management and financial accounting? $\bullet$ External verification of reports $\bullet$ Frequency of reports $\bullet$ The content and format of reports $\bullet$ The users of reports