Accounting as a System and A Profession

What is the purpose of accounting?

• to give people work to do

• to allow users to make informed decisions

• to know how much money the business owner has

• to ascertain the amount of money the business has at the bank

What is book-keeping?

• recording financial information

• preparing source documents

• the work of a librarian

• ensuring that the books balance

All of the following are internal users of accounting information except ____

• trade unions

• investors

• managers

• employees

All of the following are external users of accounting information except _____

• investors

• banks

• government

• customers

Which of the following is not a career in the accounting field?

• Book - Keeper

• budget Analyst

• Actuarial

• Insurance Agent

Ethical principles in accounting are the fundamental principles accountant choose to abide by in order to carry out their duties professionally.

• True

• False

Which of the following is not a fundamental principle of accounting?

• Integrity

• Objectivity

• Professional competence and due care

• Social Responsibility

When making professional judgements, accountants should do all of the following except ______

• ensure the business' performance looks better than it is

• avoid bias

• avoid conflict of interest

• avoid undue influence of others

The following hold true for accountants who act inappropriately, EXCEPT _____

• Missing deadlines for filing tax can lead to fines.

• Being found guilty of fraud can lead to imprisonment.

• Maligning a colleague could lead to dismissal.

• A client being dissatisfied with work carried out can lead to a law suite.

The accounting cycle is____________

(i) the method of transport used for staff to come to work

(ii) the steps taken to produce a set of accounts

(iii) the period for which the business produces its accounts

(iv) the organisation’s tax year

• (i) and (ii) only

• (iii) and (iv) only

• (ii) and (iii) only

• (i) and (iv) only