Quiz on Introduction to Accounting

The process of accounting can be described as:

• Classifying - recording - summarizing - interpreting

• Classifying - summarizing - recording - interpreting

• Recording - summarizing - interpreting - classifying

• Recording - classifying - summarizing - interpreting

En. Ameer, the owner of Ameer Enterprise, does not include his personal property on the statement financial position of Ameer Enterprise. Which accounting concept this statement is referring to?

• Duality concept

• Going concern concept

• Accrual concept

• Business entity concept

Bookkeeping differes from accounting. Bookkeeping does not involves which part of the accounting process?

• Recording

• Interpreting

• Classifying

• Summarizing

Which of the following is a characteristic of partnership?

• Limited liability

• Limited life

• Capital from public

• Managed by board of directors

One of the following statements about users of accounting information is INCORRECT:

• Inland Revenue Board is considered as internal users

• Marketing Manager is considered as internal user

• Existing investors are considered as internal user

• Account receivable are considered as external user

Summarizing is the process whereby accounting data are classified into orderly and meaningful categories of business transactions.

• True

• False

One of the purpose of accounting is to analyze and interpret the business transactions to make decisions.

• True

• False

Investor collect various information about the organization before delivering product on credit to the business.

• True

• False

The sole trader business exists regardless of the death of the owner.

• True

• False

Financial statements are prepared whenever the management requested them.

• True

• False