TOPIC 1 INTRODUCTION TO ACCOUNTING

The following users are the internal users of accounting except

• Creditors

• Managers

• Employees

Which types of business organisation has a separate legal entity from its owners and the owners are not liable for the debts of the business?

• Sole proprietorship

• Partnership

• Limited company

Bookkeeping is different from accounting. Which part of the accounting process does bookkeeping primarily involve?

• Classifying

• Recording

• Interpreting

Which type of business organisation has the following characteristics?

Conduct business separately from its owners

is a taxable entity

the owners have limited liability

• Sole proprietorship

• Partnership

• Company

A supplier can be a company or an individual that

• provides goods and services used by the business

• owns shares of the business

• gives loans to the business to help finance its activities

Which below is correct accounting cycle?

• Journal, financial statements, posting to ledgers and trial balance

• posting to ledgers, trial balance, financial statements and journal.

• journal, posting to ledgers, trial balance and financial statements.

What is the main role of an accountant?

• Ensuring the business is making profit

• Recording, summarizing and presenting financial information.

• Preparing budgets and business plans

Which the following activities is NOT an accounting function?

• Management consultation

• Costing advice

• Auditing services

Which branch accounting suitable for this statement?

Used collection of financial data to plan and control activities and productions

• Auditing

• Taxation

• Management accounting

Which of the following purposes is NOT the purpose of accounting?

• Determining the best alternative staff to do the job.

• Identifying which business activities that increase expenses.

• Determining whether a business is doing well or badly.