Introduction to Accounting Quiz

Maya is running her own online clothing store. What are the benefits of bookkeeping and accounting for her business?

• Restricted to monetary measurement only.

• Offer valuable insights for decision making.

• Do not take into account the business situation or employee attitudes.

• Capable of monitoring cashflow and budget.

Interpret, classify, analyze, report and summarize financial data.

• Bookkeeping

• Accounting

In a small business run by Ava, who are the users of bookkeeping and accounting, below?

1. 1. Managers

2. 2. Owners

3. 3. Employees

• External

• Internal

Nora is responsible for the recording of financial statements in her small business, and it is a part of the accounting process.

• Accounting

• Bookkeeping

In a company meeting, Aiden asked, "Which provides information to the external users?"

• Financial accounting

• Management accounting

Scarlett is running a small bakery and is trying to keep track of her finances. What is the downside of bookkeeping and accounting for her business?

• Limited to monetary measurement (focus on the money value)

• Able to monitor the cashflow/ budget.

• Ignore the situation of the business, employee's attitude.

• Provide useful information in decision making.

• Helps to complete record of business transactions.

Samuel runs a small bakery and needs to keep track of his finances. He understands that accounting methods and procedures should be applied on a uniform basis from period to period.

If he constantly changes the methods, it would lead to misleading profits being calculated from his accounting records.

• Prudence concept

• Going concern

  concept

• Consistency concept

• Accounting period concept

Which provides information to the internal users?

• Financial accounting

• Management accouting

Maria is managing her startup and wants to ensure that all financial activities are recorded accurately. She believes that only those events that can be quantified in monetary terms should be reflected in her financial statements.

• Accrual basis

• Money measurement

• Entity concept

• Matching principle

Which one below best describes the definition of cash transactions in the context of Aria buying a new laptop?

• Provides information to internal users

• Recording of financial statements and it's a part of the accounting process

• Payment is postponed to a future date. (Debt) 'Pay later'

• Immediate payment is made. 'Pay now'