Accounting

Which of the following user groups are most interested in the cash position of a business?

• Investors

• Government

• Suppliers

• Customers

Which of the following statements about qualities of good information is false?

• It should be relevant for its purposes

• It should be timely

• It should be communicated to the right person

• It should be completely accurate

Which of the following would be classed as indirect labour?

• Machine operators in a milk bottling plant

• coach driver in a transport company

• Plumbers in a construction company 

• maintenance assistant in a factory maintenance department

Which of the following statement about management accounts is true?

• There is a legal requirement to prepare management accounts.

• The format of management accounts is largely determined by law.

• They serve as a future planning tool.

• They serve as a future planning tool and are not used as a historical record

Which of the following is not an information need for the 'Investor' group?

• Taking decisions regarding holding investments

•  Assessment of repayment ability of an entity

• Taking buy/sell decisions

• Measuring performance, risk and return

What is an income statement?

•  An income statement is the value of the  best alternative course of action that was not chosen.

• An income statement shows all the  assets and liabilities of a business at a certain date.

• An income statement shows the  revenue and expenditure for a period.

• An income statement provides forward-looking information to management

What is a statement of financial position?

• statement of financial position shows all the assets and liabilities of a business at a certain date.

• statement of financial positionprovides forward-looking information to management.

•   statement of shows the revenue and expenditure for a period.

• statement of  the best alternative course of action that was not

How has the increasing complexity of modern business contributed to the development of accounting?

• Too many transactions, so investors need a means of summarising them

• Too many transactions, so managers need a means of summarising them

• Lenders need more information

• Government needs more information

In the context of overhead analysis, what is meant by reciprocal servicing?

• Where two or more service cost centres provide service to only some production departments and not for each other

• Where two service cost centres provide  service for all production departments but not for each other

• Where two or more service cost centres provide service for production departments and for each other

• Where only one service cost centre exists  which provides services to all production cost centres

Management accounting provides ..... information to management on which they can base decisions. Which word should be in the blank?

• historical

• Boutside

• financial

• forward-looking