Finance for Non Finance Final Test

 __________ is a specialized branch of accounting that keeps track of a company’s financial transactions.

• Cost accounting

• Management accounting

• Financial Accounting

• Corporate accounting

Financial accountancy is governed by?

• local standards only

• international standards

• local as well as international accounting standards

• company’s internal top management only

_____ is the scope of financial accounting

• Collection and processing of data

• Verifying or auditing data

• Publishing data

• All of the above

Which is not a benefit of financial accounting?

• A. Maintaining systematic records

• Protecting and safeguarding business assets

• Historical in nature

• Facilitates rational decision making

Which is not a limitation of financial accounting?

• Inadequate information to fix up the price of products manufactured

• Lack of data for comparison of cost of operation of the firm with other firms in the industry

• The data available is historical in nature

• Complies with the various legal requirements

The overriding purpose of financial accounting is to summarize financial activity in business in the ______

• profit and loss statement

• balance sheet

• cash flow statement

• all of the above

_________ are the basis of the business’s financial accounting.

• Accounting records

• Bookkeeping

• Sales Volume

• Both A & B

Financial accounting provides accounting information to the ________ though the information is useful for internal purposes also.

• external users

• internal users

• company

• competitors

Financial accounting reports to the ________ after the completion of the accounting year.

• internal management

• external parties

• Media

• rivals

Financial accounting reports include .........................

• profit and loss account

• directors report

• balance sheet and auditors report

• all of the above