Introduction to Accounts Form 4 Pt 1

The term 'Accounting' refers to the

• use of information in making business decisions

• use of special ways of recording business information

• recording, analysing and interpreting of business information

• journalising, posting and balancing of accounts in special books

Which of the following states the correct order of the stages in the accounting cycle?

• Journalising, posting to the ledgers, Trial Balance, Final Accounts

• Journalizing, Trial Balance, Posting to Ledger, Final Accounts

• Posting to Ledger, Journalizing, Trial Balance, Final Accounts

• Posting to Ledger, Trial Balance, Journalizing, Final Accounts

Which of the following is NOT an accounting transaction?

• Payment of taxes

• Day to day accumulation of interest

• Physical wear and tear on machinery and equipment

• Corresponding with customers and creditors

The term 'book-keeping' can be defined as the recording of a business's

• Profits

• Transactions

• Closing stock

• Assets and liabilities

The MAIN internal users of accounting information are

• managers

• competitors

• governments

• local communities

Which of the following BEST describes the 'Double entry' system of accounting?

• A ledger account must have two sides

• An account must be written twice in the ledger

• Each transaction must be written in tow subsidiary books

• Each transaction must have a debit entry and a credit entry

Which of the following groups of persons may be LEAST interested in using accounting information to determine how well businesses are managed?

• Owners

• Investors

• Employees

• Customers

Accounting is the process of the :

I. gathering and recording information

II. raising of funds for a business

III. providing information which influences decisions

• I and II only

• I and III only

• II and III only

• I, II and III

Which of the following groups of persons monitors a company's financial statements to discover a desirable rate of return on capital

• Investors

• Suppliers

• Customers

• Employees