Introduction to Accounting

Accounting aims to communicate financial information to investors only.

• True

• False

Accounting deals with quantifiable information.

• True

• False

Which is the last step of accounting as a process of information?

• Accountancy refers to the art of classifying the recorded transactions under their respective accounts

• Preparation of financial statement

• Interpret financial data

• All of the choices

The earliest accounting was founded by?

• Egyptian

• Eastern

• Roman

• Greek

All of the following are functions of Accounting, except:

• shorting

• summarizing

• recording

• interpreting

Which of the following is not true?

• Accounting is a communication tool that is useful to both internal and external decision-makers.

• Accounting is useful only to profit-oriented organizations.

• Accounting is the language of business.

• Accounting is not an exact science.

Which is the last step of accounting as a process of information?

• Communication of infromation

• Recording the transaction

• Analysis and interpretation of information

• Preparation of financial statement

Accounting functions which referred to collecting and communicating economic information about the business enterprise.

• Financial Position

• Interpreting Recording

• Decision Making

• Information System

Which of the following is the most appropriate definition for Accountancy?

• Accountancy refers to the art of classifying the recorded transactions under their respective accounts.

• Accountancy refers to the systematic knowledge of accounting.

• Accountancy refers to the art of communicating the financial transactions to accounting users.

• Accountancy refers to the process of recording financial transactions in the order of their occurrence.

The basic function of financial accounting is to

• Assist the management in performing functions effectively

• Record all business transaction

• Interpret financial data

• No correct answer