Pre-Test: Introduction to Accounting

What is the main purpose of accounting?

• To create business advertisements

• To record and report financial information

• To design company logos

• To increase company sales

Bookkeeping is part of accounting that involves:

• Planning business strategies

• Preparing final accounts only

• Recording financial transactions

• Auditing financial reports

Who among the following is an external user of accounting information?

• Manager

• Owner

• Bank

• Employee

Which field of accounting is mainly used by internal users for decision-making?

• Financial Accounting

• Tax Accounting

• Auditing

• Management Accounting

The concept that assumes a business will continue to operate in the future is called:

• Prudence Concept

• Going Concern Concept

• Objectivity Concept

• Matching Concept

Accounting provides information that is useful for:

• Watching movies

• Making financial decisions

• Hiring new staff

• Designing buildings

Which of the following is NOT a phase in the accounting process?

• Classifying

• Recording

• Analyzing

• Investing

What is the key difference between accounting and bookkeeping?

• Bookkeeping involves interpretation of data

• Accounting is only about issuing receipts

• Accounting includes analysis and decision-making

• Bookkeeping prepares financial statements

Which of the following is a regulatory body in Malaysia?

• Ministry of Education

• Inland Revenue Board (LHDN)

• Bank Negara Malaysia

• Jabatan Perangkaan

The principle that states business and owner are separate entities is called:

• Consistency Concept

• Money Measurement Concept

• Separate Entity Concept

• Accrual Concept