FABM 1

Who signed the royal charter for the Institute of Accountants in Glasgow?

• King George III
• Queen Elizabeth I
• Prince Charles
• Queen Victoria

Accountants communicate the summarized results of all company financial events to interested parties to help them in ________

• auditing
• budgeting
• decision-making
• tax preparation

 The PAS, GAAP and PFRS are accounting ________

• standards
• guidelines
• regulations
• principles

 Which of the following is a correct listing of the steps in the accounting process?

• identifying, recording, communicating

• identifying, segregating, communicating

• segregating, recording, verifying

• segregating, verifying, identifying

 What is the primary purpose of accounting?

• To track events that affect a business

• To create financial reports

• To analyze market trends

• To manage human resources

 Which of the following is not a basic feature of accounting?

• Accounting is a process

• Accounting is an art

• Accounting deals with non-quantifiable transactions

• Accounting is a means and not an end

 Which of the following is an example of an external user of accounting information?

• Marketing manager

• Production supervisor

• Potential investor

• Finance director

 What is the primary role of the government as an external user of accounting information?

• To regulate businesses

• To manage and operate the business

• To make decisions for the company

• To determine the profits of the company

Who are considered internal users of accounting information?

• Customers

• Creditors

• Management

• Potential investors

 They are the citizens and residents of the country even though they do not plan to transact with the business they use financial statements to gauge the condition of the economy.

• Customers

• General Public

• Government

• Academe