Accounting Unit 1 & 2

A good accounting system should provide adequate information for the use of:

• the management of the firm.

• the owner of the firm

• the government

• lenders

• all of the other answers

Auditing may be described as:

• serving the general public.

• the accounting procedures of a large company..

• testing a firm’s records and procedures for accuracy.

• keeping accounting records for the government.

Accounting controls serve to promote employee:

• happiness

• loyalty

• health

• honesty

Which of the following is not a merchandising firm:

• a grocery store

• Canadian Tire

• a hairdresser

• The Bay

A business with more than one owner is called:

• sole proprietorship

• partnership

• limited proprietorship

• franchise

A fiscal period may be described as:

• the time period required to complete the accounting cycle.

• the time period required to collect all debts.

• the time needed to pay all debts.

• the amount of time needed to earn a profit.

A business called “Holiday Homes Ltd.” is organized as:

• sole proprieterhip

• partnership

• corporation

• government agency

Computers are important in accounting, but they cannot perform the task of:

• sorting

• calculating

• storing

• decision making

Public accountants are different from professional accountants because they:

• have greater accounting knowledge.

• serve the public for a fee.

• perform more industrial work.

• work for the government.

Preparing your income

tax return is made easier by a knowledge of accounting.

• true

• false