FABM1 Diagnostic Test

During which historical period did the development of accounting theory begin?

• The Beginning of Civilization
• The Industrial Revolution
• The French Revolution
• The Present

In which century did double-entry bookkeeping become prominent?

• 14th Century
• 19th Century
• 18th Century
• 20th Century

What accounting term is used for the process of grouping similar transactions together?

• Posting
• Journalizing
• Recording
• Summarizing

What aspect of accounting became important during the Industrial Revolution?

• Recording daily activities
• Mass production and fixed assets
• Communication of financial results
• Analyzing financial data

What does accounting provide information on, making it an information system?

• Profitability and liquidity
• Sales and marketing
• Employee performance
• Customer satisfaction

What does modern accounting standards development represent in the present era?

• A return to double-entry bookkeeping
• The decline of accounting as a profession
• The development of financial analysis tools
• The development of comprehensive accounting guidelines

What happens after information is summarized, analyzed, and interpreted in accounting?

• Taxes are calculated
• Financial statements are prepared
• It is communicated to interested parties
• Journal entries are made

What is one of the functions of accounting in business?

• Producing goods
• Protecting properties
• Marketing products
• Building infrastructure

What is the main objective of communicating financial information to users?

• To maintain full and systematic records
• To facilitate rational decision making
• To make a profit
• To record business transactions

What is the next step after preparing a trial balance?

• Preparing financial statements
• Preparing worksheet
• Analyzing financial data
• Posting to the ledger