Users of Accounting

Users of Accounting

By: Mrs. Cousins

Multiple Choice

Which of the following equation is true?

• Total Asset = Current Asset + Current Liabilities

• Asset = Liabilities + Stakeholder's Equity

• Total Liabilities = Current Liabilities + Non Curent Liabilities + Equity

• Equity = Current Liabilities + Non Current Liabilities

Multiple Choice

Which of these is a liability?

• Cash in bank

• Stock

• Money owed to other business (creditors)

• Machinery

Multiple Choice

Which of these is an asset?

• Any stock (Inventory) that you have

• A loan to buy a van

• A satisfied customer

• Reduced rent

Multiple Choice

A company's senior and middle management use accounting information to:

• make buy, sell or keep decisions related to shares.

• determine a company's profitability and profit sharing

• run the business

• utilize accounting information to make lending decisions

Multiple Choice

Data are checked by

• External users

• Internal users

• External users + Internal users

• None of the answers

Multiple Choice

Did the company earn a satisfactory income?

• Creditors

• Finance

• Management

• Investors

Multiple Choice

Do we need to borrow in the near future?

• Creditors

• Management

• Finance

• Investors

Multiple Choice

Will the company be able to pay its short-term debts?

• Customers

• Creditors

• Debtors

• Managers