What does internal auditing focus on?

Operational efficiency and effectiveness.

What is the historical significance of Fra Luca Pacioli in accounting?

He is considered the father of accounting.

He developed the first accounting software.

He was the first to audit financial statements.

He created the first financial statement format.

What is the purpose of the accounting cycle?

To ensure reliable and relevant financial information.

To classify financial transactions.

What is the main objective of external auditing?

To express an opinion on the fairness of financial statements.

To prepare financial statements.

To assist in internal management decisions.

To ensure compliance with tax regulations.

What does the Accrual Basis in accounting mean?

The Accrual Basis in accounting means Under this basis, the effects of transactions and other events are recognized when they occur and not as cash or its equivalent is received or paid on the period to which they relate.

Recognizing revenues and expenses based on estimates rather than actual transactions.

Recording expenses only when they are paid.

Recognizing revenues only when cash is received.

What is the primary purpose of managerial accounting?

To provide information for internal decision-making.

To prepare financial statements for external users.

To ensure compliance with financial regulations.

What is the significance of Generally Accepted Accounting Principles (GAAP)?

They provide a framework for financial reporting.

They are only applicable to tax accounting.

They are guidelines for internal auditing.

They are used exclusively by government entities.

What is the main difference between cash basis and accrual basis accounting?

Cash basis recognizes revenue when cash is received, while accrual basis recognizes revenue when earned.

Cash basis is more complex than accrual basis.

Cash basis is used for tax purposes, while accrual basis is used for financial reporting.

There is no significant difference between the two methods.

American Accounting Association (AAA) describes accounting as the method of recognizing, appraising and communicating economic details to permit informed judgment and decision by users of the information.

Recognizing, Appraising and Communicating

Accounting is solely about financial reporting.

Accounting is the study of historical events.

Accounting only involves tax preparation.

The American Institute of Certified Public Accountants (AICPA) defines accounting as the art of recording, classifying, and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.

The American Institute of Certified Public Accountants Art of Accounting

Accounting is solely about tax preparation.

Accounting only involves financial forecasting.

Accounting is the process of auditing financial statements.

Accounting provides quantitative information, focusing on economic events that are quantifiable and measurable in terms of money.

Accounting focuses solely on qualitative information.

Accounting is only concerned with non-economic events.

Accounting does not measure events in monetary terms.

Accountants follow certain standards in performing their professional services, similar to other professionals like lawyers and engineers.

Accountants follow Standards of Discipline.

Accountants do not follow any standards.

Accountants only follow tax regulations.

Accountants are not required to adhere to any guidelines.

Accounting as an art follows certain style to make its reporting more meaningful, while as a science it follows a systematic process before producing financial statements.

It is called art and science of accounting.

Financial statements are not influenced by artistic style.

Accounting does not require creativity.

The coherent system of accounting is condensed into the accounting cycle process, which is a step-by-step procedure to attain reliable and relevant information.

The financial statement process.

Accountants are concerned with providing professional services to clients rather than engaging in the actual business of the company.

Accountants provide professional services to clients.

Accountants do not interact with clients at all.

Accountants are primarily focused on sales and marketing.

Accountants run the day-to-day operations of a company.

Through financial statements, accounting serves as the language of business, allowing different users to seek assistance for their individual needs.

Accounting is the language of business.

Accounting is only for large corporations.

Financial statements are not useful for small businesses.

Accounting is a form of marketing.

The basic function of accounting, focusing on ensuring all business transactions of at least financial in nature are completely recorded in an acceptable manner.

Recording financial transactions accurately.

Recording only cash transactions.

Summarizing transactions without details.

Ignoring financial transactions altogether.

_______ is concerned with the systematic analysis of journalized data to group transactions or entries of one nature into a certain account.

Classifying of transactions into accounts.

Classification of accounts into transactions.

Grouping of unrelated data entries.

Analysis of financial statements for trends.

This is the final end-function of accounting. The recorded, classified and summarized financial data is analyzed and interpreted in a manner that the end-users can make a meaningful judgment about the conditions, stability, and profitability of the business operation.

Financial analysis and interpretation.

Inventory management and control.

Budget forecasting and planning.

The accounting information after being meaningfully analyzed and interpreted has to be communicated in a proper form and manner to the proper person. This is done through preparation and distribution of accounting reports, which include besides the usual income statement and the balance sheet, additional information in the form of accounting ratios, graphs, diagrams, funds flow statements etc.

Accounting reports are essential for communicating analyzed financial information.

Financial information should not be analyzed before reporting.

Accounting reports are only necessary for tax purposes.

Graphs and diagrams are not part of accounting reports.

__________ is the discipline of accounting concerned with recording and classifying business transactions concluding to the preparation of general-purpose financial statements. This branch of accounting is mainly concerned on the reports on the entity's financial position (its resources and claims), financial performance (income and expenses), and the changes in a particular owners' equity.

Financial Accounting is concerned with recording transactions and preparing financial statements.

Financial Accounting focuses solely on tax preparation.

Financial Accounting is only about budgeting and forecasting.

Financial Accounting does not involve recording transactions.

A professional field for Certified Public Accountants, requiring a Bachelor of Science in Accountancy to take the licensure examination.

Certified Public Accountant (CPA) profession.

Management Accountant (CMA) profession.

Concerned with taxes paid by entities based on reported net income and compliance with regulations.

Tax compliance and reporting to government.

Fundamentals of Accounting Quiz

Quiz

•

Others

•

11th Grade

•

Practice Problem

•

Hard

sai_zy paler

FREE Resource

Internal management reporting.

Auditing financial records.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Popular Resources on Wayground

5 questions

This is not a...winter edition (Drawing game)

Quiz

•

1st - 5th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

10 questions

Identify Iconic Christmas Movie Scenes

Interactive video

•

6th - 10th Grade

20 questions

Christmas Trivia

Quiz

•

6th - 8th Grade

18 questions

Kids Christmas Trivia

Quiz

•

KG - 5th Grade

11 questions

How well do you know your Christmas Characters?

Lesson

•

3rd Grade

14 questions

Christmas Trivia

Quiz

•

5th Grade

20 questions

How the Grinch Stole Christmas

Quiz

•

5th Grade

Discover more resources for Others

26 questions

Christmas Movie Trivia

Lesson

•

8th Grade - Professio...

15 questions

Christmas Song Emoji Pictionary

Quiz

•

7th - 12th Grade

20 questions

Christmas Movies

Quiz

•

1st - 12th Grade

20 questions

Christmas Movie Trivia

Quiz

•

9th - 12th Grade

29 questions

christmas facts

Lesson

•

5th - 12th Grade

20 questions

Christmas Trivia

Quiz

•

5th - 12th Grade

20 questions

Stages of Meiosis

Quiz

•

9th - 12th Grade

20 questions

christmas songs

Quiz

•

KG - University