TOPIC 1-INTRODUCTION TO ACCOUNTING

Book keeping is mainly concerned with

• Recording of financial data

• Designing the systems in recording, classifying, and summarizing the recorded data

• Interpreting the data for internal and external users

• None of the above

The process of identify, classify, recording and communicating business transaction is called as book-keeping.

• True

• False

Which of the following is definition of accounting?

• It's a process of classifying, recording, and summarizing the business transaction in monetary unit.

• It's a process of recording, classifying, and summarizing the business transaction in monetary unit.

• It's a process of classifying, recording and summarizing the business transaction interpreting the data in assist stakeholders in making decision.

Accounting is referred to as the "language of ___________________."

• Profit

• Life

• Accounting

• Business

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

Which of the following statement is true?

• Bookkeeping is recording all the business transaction and owner's own transaction

• Bookkeeping deals with record-keeping and is one only aspect of accounting

• Bookkeeping and accounting are one and the same since the bookkeeping function is includes in accounting process

• None of the above

Define the bookkeeping

• It's a process of classifying, recording and summarizing the business transaction.

• Its a process of recording, summarizing and classifying the business transactions.

• It's a process of classifying, summarizing and recording the business transactions.

Which one of the following is not an external user of accounting information?

• Investor

• Creditor

• Manager

• Customer

Types of business activities are...

• Services and merchandising

• Services and manufacturing

• Services, manufacturing and merchandising

Types of business ownerships are...

• Sole Proprietorship, Partnership and Company

• Sole Proprietorship and Partnership

• Partnership and Company