Accounts Chapter 1

 Which of the following represent a business transaction? (Click 2)

• Bought 2 Vans for delivery purposes costing 5000euro each.

• The employees go for monthly training 

• The business receives good feedback on TripAdvisor

• An investor invests 850euro into the business

Which are the processes of accounting?

• Gathering and recording accounting data

• Classifying and summarising accounting data

• Working with numbers and people

• Communicating accounting information

What are the steps of bookkeeping

• Making sure to have all the books in order

• Gathering and recording accounting data

• Classifying and summarising accounting data

• Communicating accounting information

Potential investors want to know ________________________

• whether or not the business is popular

• whether or not the business is legal

• whether or not the business is

• whether or not to invest their money in the business

Lenders and other creditors want to _____________________

• ignore the business not to spend money

• know information about the business if the owner wants to borrow money from them.

• try the services of the business before investing

Managers need to know how the business is doing ______________

• in order to be able to take the day-to-day decisions

• so that he can trade some work

• to be able to burrow more money from the bank

• to invest with the owners

The owner of the business needs to know the accounting information _______________

• to see if the trading is financially stable or not

• to see if he will invest more

• to see if the business is making profit and to know what financial resources the business has.

• to lend more money

Suppliers and customers may need to know accounting information of a business to see if ______________________

• they have insurance needs

• there money will be invested well

• they can borrow money from the business

• the business is financially stable or not

Government needs to know accounting information of a business to be able to ____________________________

• give cash gifts

• vouchers

• calculate taxes that have to be paid

• calculate losses

From the following which are examples of internal users?

• Potential investors

• Lenders and other creditors

• Managers and owner

• Manager and government