Computerized Accounting Unit 1

What is the primary focus of relevance in accounting?

• Consistency of measurement methods

• Being free from errors and bias

• Aiding in prediction and decision-making

• Comparable information intelligibility

Which internal user primarily relies on accounting information for planning, controlling, and decision-making?

• Owners

• Investors

• Unions

• Management

What does reliability in accounting information mean?

• How well information reflects transactions or events

• Timeliness of information

• Decision-makers' interpretation

• Predicting future outcomes

What is the key aspect of understandability in accounting information?

• Using consistent measurement methods

• Being timely and aiding prediction

• Presenting information in a clear and comprehensible manner

• Ensuring information is credible and verifiable

What does comparability in accounting information allow users to do?

• Predict future outcomes

• Make meaningful comparisons over different time periods and entities

• Ensure information is free from bias

• Follow a common format of reporting

What is the primary purpose of accounting in business?

• Providing financial information for decision-making

• Facilitating the sale of the business

• Eliminating the memory burden

• Maintaining systematic records of financial transactions

What is the primary concern of investors and potential investors when using accounting information?

• Environmental impact

• Risks and return on investment

• Resource allocation

• Stability and profitability

Why are accounting records considered reliable evidence in legal matters?

• They facilitate tax settlement

• Courts trust the interpretation of financial information

• They help identify reasons for changes in financial results

• Proper accounting involves a structured approach to financial management

Which of the following is essential for information to be comparable in accounting?

• Being timely

• Using consistent units of measurement

• Reflecting transactions accurately

• Presenting information in a concise manner

Which external user is primarily concerned with the impact on the environment and its protection?

• Investors

• Competitors

• Social responsibility groups

• Researchers