FAR110_Introduction to Accounting Quiz

What are the three basic activities of accounting?

• Planning, recording, reporting

• Identifying, recording, communicating

• Calculating, adjusting, preparing

• Classifying, identifying, reporting

Which of the following is NOT a function of financial statements?

• • To maintain accuracy in recording

• • To provide information for decision-making

• • To increase sales revenue

• To ensure proper records are kept

What is the primary objective of financial statements?

• To provide information for decision making

• To prepare tax returns

• To record business transactions

• To maintain accounting records

Who is considered the father of double-entry bookkeeping?

• Luca Pacioli

• Frank Wood

• Siti Noor Hayati

• Alan Sangster

Which of the following is NOT a qualitative characteristic of accounting information?

• Relevance

• Timeliness

• Complexity

• Understandability

What does the term 'going concern' refer to in accounting?

• The preparation of financial statements

• The process of recording transactions

• The assumption that a business will continue to operate

• The evaluation of financial performance

Which of the following is a type of internal user of financial information?

• Public

• Managers

• Creditors

• Government

What is the main difference between accounting and bookkeeping?

• Bookkeeping is more complex than accounting

• Bookkeeping is not part of accounting

• Accounting does not require recording transactions

• Accounting involves analysis and reporting

Which accounting principle requires that income and expenses be recognized in the period they occur?

• Consistency concept

• Accrual concept

• Monetary concept

• Cost principle

What is the main purpose of accounting standards?

• To ensure uniform financial statements

• To increase the complexity of reporting

• To eliminate financial reporting

• To reduce the number of users