Pre-Test - LAS 1 - FABM1

Which of the following statements regarding recording of events is valid.

• Both non-accountable and accountable events are recorded in the accounting books

• Only accountable events are recorded in the accounting books

• Only non-accountable event is recorded in the accounting books

• Neither non-accountable nor accountable events are recorded in the accounting books

Which of the following is not an appropriate description of accounting?

• Accounting is an information system.

• Accounting is an exact science rather that an art.

• Accounting is the language of business

• Accounting is a service activity

The types of information provided by accounting is/are.

• Financial Information

• Qualitative information

• Qualitative information

• All the above

This is a process of identifying, recording and communicating economic information that is useful in making economic decisions.

• Accounting

• Auditing

• Bookkeeping

• Marketing

In accounting, the term “recording” is also called?

• Communicating

• Debiting

• Journalizing

• Videoing

Which of the following accounting processes comes first ahead of the others?

• Communicating

• Identifying

• Interpreting

• Recording

The events that affect the entity and in which other entities participate are known as:

• Current events

• External events

• Internal events

• Obligating events

This essential element of the definition of accounting is the

recognition of business activities as accountable events.

• Communicating

• Identifying

• Measuring

• Reporting

Statement I: Financial information is expressed in terms of Money

Statement II: Financial information is qualitative information.

• False; False

• False; True

• True; True

• True; False

He is considered as the father of modern accounting.

• Amatino Manucci

• Devin Pascoli

• Fra Luca Pacioli

• Jacques Savary