POA

Accounting is

• A. recording anything that happens in a business

• B. recording the transaction of a business

• C. recording, analysing and interpreting the business'

  transactions

• D. recording, summarising, analysing and interpreting the

  business' transactions

The recording of the transactions in the accounting of books of a business is called

• A. accounting

• B. book-keeping

• C. liabilities

• D. resources

The purposes of preparing accounting documents and financial statements are to

i show information of the resources of a business

ii show who has claims on the business' resources

iii help users of financial information make decisions about

the business

• A i and ii only

• B. i and iii only

• C. ii and iii only

• D. i, ii and iii

Which lists represents both internal and external users of financial statements?

• A. Banks, government and investors

• B. Creditors, government and managers

• C. Creditors, banks and investors

• D. Suppliers, investors and banks

Which accounting user is correctly matched with its need?

• A. Banker - to determine taxes to charge the business.

• B. Government - to find out if the business can repay a loan.

• C. Supplier - to find out if he should invest capital in the

  business.

• D. Owner - to determine the profit of the business over the

  financial period.

Marlon Ettienne prepared the financial statements for Brown Town Hardware. He is of the view that the statements should show more information about the transactions that are important to the owners than simply following accounting principles. His view is against the principle of

• A. integrity

• B. objectivity

• C. confidentiality

• D. professional competence

Gordon Corbin, the manager of Sea Sea Hotel, fired his accountant. He then promoted his niece, Janet Cain, the bartender, who has no accounting training or experience, as the accountant. Which of the following does Janet lack?

• A. Integrity

• B. Objectivity

• C. Confidentiality

• D. Professional competence

Salina is newly employed as a clerk in the accounts department of Zanny Stores. She shared with her friend, the messenger, the balance in the three bank accounts of the business. Which ethical principle in accounting has she breached?

• A. Integrity

• B. Objectivity

• C. Confidentiality

• D. Professional competence

Allan Piper prepared a cheque for $100 000 in his name and forged signatures on the cheque. Which of the following has Allan displayed a lack of?

• A. Integrity

• B. Objectivity

• C. Confidentiality

• D. Professional competence

John Dough, the accountant, does not lock unused cheques away securely, leaves cheques on his desk incomplete and accessible by other employees and prepares reports two months after the month has passed. Which of the following describes John's behaviour?

• A. Lack of objectivity

• B. Lack of confidentiality

• C. Unprofessional behaviour

• D. Unprofessional competence