QUIZ 1: AM111

Accounting provides management with information which are of financial in character and identifies which data is relevant for decision making.

The primary role of an accountant in business is to prepare financial statements.

Decision- makers of the business are relying on financial accounting data to be able to make decisions.

The primary motive of a person engaged in business is profit.

The accountancy profession is continually evolving and developing to meet the changing needs of time.

he preparation of financial statements is governed and guided by concepts or assumptions which are the very foundations of GAAP.

The length of accounting period chosen depends on the need of the owner for financial information about his business.

The excess of revenue over expenses is called operating loss.

It becomes compulsory to all business establishments to maintain and keep business records as required by law.

Accounting is considered the “language of business” because it is used as medium of communication in the world of business.