CHAPTER 1 INTRODUCTION TO ACCOUNTING

CHAPTER 1: INTRODUCTION TO ACCOUNTING

Multiple Choice

Definition of Accounting

• Accounting is a process of identifying, recording, classifying, summarizing, communicating and interpreting the results of business or economic transactions to users in order for them to make better decisions.

• Accounting is a process of identifying, recording and classifying economic transactions to users.

• Accounting is a process of preparing Income Statement and Financial Position Statement.

Multiple Choice

The users of accounting information are...

• Internal users

• External users

• Internal & External users

Multiple Choice

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

• Financial Accounting

• Managerial Accounting

• Tax Accounting

• Forensic Accounting

Multiple Choice

What is proprietorship business?

• Business own by two or more person

• Business ownership divided by share

• Business own by one person

Multiple Choice

Types of business activities are...

• Services and merchandising

• Services and manufacturing

• Services, manufacturing and merchandising

Multiple Choice

Types of Financial Statements are..

• Statement of Comprehensive Income, Statement of Owner’s Equity and Statement of Financial Position

• Statement of Comprehensive Income, Statement of Owner’s Equity, Statement of Financial Position and Statement of Cash Flows

• Statement of Comprehensive Income, Statement of Owner’s Equity, Statement of Financial Position and Budget