Accounting Assessment 1

Front

The process of keeping the financial records of a business is known as:

Back

accounting

Front

The overall purpose of accounting is to: maintain accurate reports, compile the business's expenses, keep track of sales, control the finances of the business

Back

control the finances of the business

Front

Why are accurate accounting records important to a business?

Back

They show how the business is doing.

Front

Which of the following groups makes regular use of a business's managerial accounting information: Supervisors, Customers, Creditors, Investors?

Back

Supervisors

Front

A creditor is most likely to examine a business's financial accounting records if the business is applying for a bank loan.

Back

applying for a bank loan.

Front

Riley is an employee of the federal government who studies the financial reports of major businesses in a specific industry. The government's purpose in assigning this task to Riley is to

Back

identify trends in the industry.

Front

For an accounting system to be useful to the business, the accounting information it contains must be

Back

accurate and up to date.

Front

Which of the following is a requirement for a good accounting system:
It should be updated annually.
It should provide needed information quickly.
It should eliminate the need for an accountant.
It should be replaced every two or three years.

Back

It should provide needed information quickly.

Front

Two employees used a business's computerized accounting system to change some records. They were able to steal $50,000 from the business because the accounting system lacked which of the following: protection from theft and fraud, an affordable price, a manual system as backup, printed financial statements?

Back

protection from theft and fraud

Front

Check, receipts, invoices, and purchase orders are examples of

Back

source documents.