Accounting theory

TRUE of FALSE

Most people need some simple form of accounting to deal with their personal financial matters.

• TRUE

• FALSE

Accounting is a discipline that:

(select all that apply)

• measures

• processes

• reports information

• decides

• records

_______________ means that the owner of a business is personally responsible for meeting any debts incurred by the business.

• limited liability

• unlimited liability

A company with 'Ltd' in its registered name has which type of liability?

• limited

• unlimited

Select all that are examples of trading businesses

• Woolworths

• Bunnings

• McDonalds

• Kmart Tyre and Auto

• Centenary Heights State High School

Select all that are examples of service enterprises

• McDonalds

• Just Cuts

• University of Southern Queensland

• Jim's Lawn Mowing

• Harvey Norman

Select all that might be interested in using/accessing accounting information

• management

• board of directors

• investors

• Taxation office

• shareholders

Which of the following is not an objective of accounting?

• Discharging accountability

• Analyse financial position

• Information for decision making

• Evaluating Performance

Accounting standards in Australia make sure that financial information presented by companies is ________ , ________ and easy to understand.

• trustworthy, distinguishable

• reliable, consistent

• timely, professional

• accurate, reportable

Why do we have accounting standards? (select all answers that are correct)

• to ensure a standard set of rules, practices and procedures

• to ensure accuracy across businesses

• there are no such thing as accounting standards

• to ensure that taxes are properly paid and business avoid fraud