Introduction to Accounting

What is the primary purpose of accounting in an organisation?

• To monitor employee attendance

• To decorate reports with numbers

• To provide information for financial decision-making

• To prepare meeting schedules

Which of the following best describes accounting?

• A way to file documents for recordkeeping

• A language that records, classifies, and summarises financial data

• A method to control all staff activities

• A budgeting system for elections

In the public sector, accounting mainly helps to:

• Hide sensitive expenditure from the public

• Ensure transparency, accountability, and compliance

• Increase procurement budgets

• Track daily staff movements

Who among the following is considered an internal user of accounting information?

• Taxpayer

• Auditor

• Department Head

• Supplier

Which of the following users would most likely use accounting information to make lending decisions?

• Local resident

• Bank officer

• Training officer

• Procurement clerk

Why do auditors rely on accounting information?

• To assess staff performance

• To prepare advertisements

• To verify how funds are spent and detect misuse

• To decide on project themes

Which financial statement shows the organisation’s financial position at a specific point in time?

• Income Statement

• Statement of Cash Flows

• Balance Sheet

• Budget Summary

The purpose of an income statement is to:

• Show revenue and expenses over a period

• Display only the remaining cash balance

• Record employee attendance

• Track only government grants

Which of the following business types is typically owned by multiple partners who share profits and responsibilities?

• Proprietorship

• Corporation

• Partnership

• NGO