Chapter 1: Introduction to English for Accounting and Auditing

Which principle matches revenue with related expenses?

• Consistency

• Matching

• Prudence

• Objectivity

Which job is responsible for providing tax planning services?

• Auditor

• Bookkeeper

• Tax Advisor

• Controller

What does CPA stand for?

• Certified Payroll Advisor

• Chartered Public Accountant

• Certified Public Accountant

• Chartered Private Accountant

Which principle ensures comparability of financial information?

• Accrual

• Matching

• Consistency

• Prudence

The Going Concern principle assumes...

• A business will grow rapidly

• The business operates indefinitely

• All debts will be paid immediately

• Revenues equal expenses

What is the main role of an auditor?

• Maintain cash records

• Design budgets

• Examine financial statements

• File taxes

Which body issues the CA qualification in the UK?

• AICPA

• ICAEW

• ACCA

• CIMA

Which of the following is not an accounting principle?

• Going Concern

• Matching

• Neutrality

• Accrual

What document summarizes financial performance?

• Trial Balance

• Income Statement

• Audit Report

• Ledger

The Prudence principle means...

• Estimating gains early

• Reporting expected profits

• Avoiding overstatement

• Maximizing shareholder value