Introduction to Accounting Quiz

The main purpose of accounting is to:

• Maximize the amount of profit that a company earns.

• Provide employment for those who specialize in handling numbers.

• Minimize the amount of profit that a company earns.

• Help information users make decisions about economic activities.

Which of the following users of accounting information need information on a company's future dividends or profitability?

• Government agencies

• Suppliers

• Labor unions

• Investors

Which of the following groups is not an external potential user of accounting information?

• Suppliers of goods and services

• Management

• Union organizations (such as labor unions)

• Financial organizations

The fundamental ethical principles for accountants include:

• Integrity and objectivity

• Confidentiality and professionalism

• Competence and integrity

• All of the given answers.

Accountants can work in the following entities:

• Government agencies

• Businesses

• Nonprofit organizations

• All of the given answers.

Which of the following statements is incorrect regarding financial accounting?

• Strict adherence to accounting standards is required.

• Users include both internal and external parties.

• It emphasizes periodic reporting.

• Information is forward-looking.

The difference between management accounting and financial accounting is:

• Management accounting focuses on external users, while financial accounting focuses on internal users.

• Management accounting focuses on reporting functions, while financial accounting focuses on control functions.

• Management accounting focuses on internal users, while financial accounting focuses on external users.

• Management accounting focuses only on control functions, while financial accounting focuses on reporting functions.

The steps involved in implementing the accounting process are as follows:

• Observation - Identifying - Recording

• Identifying - Recording - Communicating

• Observation - Identifying - Providing information

• All of the above are incorrect

Which of the following is not a step in the accounting process?

• Identifying

• Recording

• Communicating

• Observation

On January 1, 20X1, Binh An Company transferred 120 million VND to pay office rent for one year and recorded the entire amount as an expense in January 1/20X1. Which accounting principle was violated?

• Matching principle

• Going concern principle

• Consistency principle

• Historical cost principle