FABM 1 Review 1

Planning, recording, analyzing, and interpreting financial information

• accounting
• ethics
• transaction
• revenue

Double entry in accounting means there must be________ entries for every transaction

• two

• Three

• six

• one

Which of the following is not a business transaction?

• Bought furniture of ₹10,000 for business

• Paid for salaries of employees ₹5,000

• Paid son's fees from her personal bank account ₹20,000

• Paid son's fees from the business ₹2,000

All of the following are functions of accounting except

• Decision making

• Measurement

• Forecasting

• Ledger posting

Users of accounting information include

• Creditors

• Lenders

• Customers

• All of the above

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

Which of the following is the example of internal users?

• Government

• Investors

• Creditors

• Employees

Which of the following is the most relevant accounting information for taxation authorities?

• Cash balance of the firm

• Book value of the fixed assets

• Credit sales of the year

• Profit generated during the year

Which of the following would not be considered as internal users of accounting data for a company?

• External auditor

• CEO of the company

• President of the company

• Salesman of the company

The process of identifying, classifying, recording and communicating business transaction is called as bookkeeping.

• True

• False