Test (20%)

Name

Student ID

1. Accounting provides information on _________.

• A. Cost and income for managers
• B. Company’s tax liability for a particular year
• C. Financial conditions of an institution
• D. All of the above

2. Why is accounting important to business?

• A. It provides the information that a business needs to file taxes
• B. It lets a business owner know how much money he is spending
• C. It lets a business owner know what his assets are worth
• D. All of the above

3. The main purpose of accounting is _________

• A. to account for money so it will not be lost.
• B. to provide information that is useful in making economic decisions.
• C. to safeguard the assets of a company.
• D. to provide a clear view of the state of the industry’s economy

4. Which of the following describes the practical framework of bookkeeping?

• A. Classifying, recording and summarizing
• B. Reporting, analyzing and interpreting
• C. Classifying, analyzing and interpreting
• D. Recording, summarizing and reporting

5. Which of the following would not be considered an internal user of accounting data for Megah Berhad?

• A. President
• B. Production manager
• C. Merchandise inventory clerk
• D. President of the employees' labor union

6. The art of recording all business transactions in a systematic manner in a set of books is called _______

• A. Accounting
• B. Bookkeeping
• C. Ledger
• D. None of the above

7. Who may need accounting information to decide which products to buy from which companies?

• A. Investors
• B. Creditors
• C. Customers
• D. Company’s owner

8. A company's senior and middle management use accounting information to _______

• A. make buy, sell or keep decisions related to shares.
• B. run the business
• C. determine a company's profitability and profit sharing
• D. utilize accounting information to make lending decisions