Introduction to Accounting (IGCSE)

Which task is performed by a book keeper ?

• analysing the trading results

• entering the transactions in the ledger

• preparing year end financial statements

• providing information for decision - making

Who is not an external user of accounting information

• legal bodies

• general public

• government

• employees

• 1 and 2

• 1 and 3

• 2 and 4

• 3 and 4

Who would probably use accounting information to set tax rules for businesses ?

• government

• proprietor

• employees

• suppliers

Accounting records can ascertain profit or loss of a business

• true

• false

which is not a financial/business transaction

• borrowing cash

• sale of goods on cash

• buying on credit

• volunteer services

which of the following would not fall under the defenition of an asset ?

• land

• machinery

• cash

• creditors

which one of the following would fall under the definition of a liability ?

• cash

• debtors

• tax owed

• all of these

which of the following statements are false ?

• a liability is a debt for the business

• debtors are a debt for your business

• The accounting equation shows how much of your assets belong to the owner, and how much ‘belong’ to people outside the business

• assets = capital + liabilities

which of the following statements are false ?

• A business whose liabilities are greater than its assets has a bad financial position.

• A business whose liabilities are greater than its owner’s equity has a bad financial position.

• A business whose assets are greater than its owner’s equity has a bad financial position.

• a) and b)

• all the above