What is the purpose of accounting?

• To provide quantitative financial information to help make decisions

• To communicate with internal and external users

• To record and classify transactions

• To maintain accounting records

Who is responsible for developing and maintaining accounting records?

• Bookkeeper

• Manager

• Auditor

• Financial analyst

What is the nature of accounting?

• Manufacturing activity

• Service activity

• Construction activity

• Retail activity

What is the function of auditing in accounting?

• To communicate the financial health and performance of a company effectively

• To ensure that the company meets all the legal requirements and regulations set forth by the government

• To keep systematic records of the business's economic standing

• To evaluate whether the information from a completed accounting process abides with established accounting standards

During which era was the informal recording of money and trade-related information observed?

• Industrial Revolution

• Renaissance Era

• Mesopotamian Era

• Victorian Era

Who is known as the father of accounting?

• American Accounting Association

• Queen Victoria

• Hammurabi

• Luca Pacioli

What is the business entity concept in accounting?

• Recognizing the business as a government entity

• Recognizing the business as a subsidiary entity

• Recognizing the business as part of a larger entity

• Recognizing the business as a separate entity

What is the time period principle in accounting?

• Recording revenue and expenses when incurred

• Recognizing revenue when it is realized and earned

• Including all relevant and necessary information in financial statements

• Reporting financial transactions over a standard period

What is the full disclosure principle in accounting?

• Recognizing revenue when it is realized and earned

• Assets and revenues should not be overstated, while liabilities and expenses should not be understated

• Including all relevant and necessary information that would affect the user’s understanding of the financial statement

• Reporting revenues and related expenses together in the same period

What is the expanded accounting equation?

• Assets = liabilities + capital

• Assets = liabilities + owner’s equity + revenue - expenses

• Assets = liabilities + owner’s equity

• Assets = liabilities + capital + revenue - expenses - drawings