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Accounting and Auditing

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

Management accounts in large companies are prepared:

a)

yearly

b)

monthly

c)

quarterly

d)

weekly

2.

The company must follow a principle of (a)   , i.e. it cannot keep changing its accounting systems every year.

3.

In the past, a company's records were kept in real ____ or ____ - hence the term bookkeeping.

(a)  

4.

The external auditors must give a(n) (a)   opinion of the accounts.

5.

A purchasing ledger tells you about things a company (a)   .

6.

Financial statements are published for _____ and _____ to inspect.

(a)  

7.

Tick ALL the types of ledgers used in companies.

a)

sales ledger

b)

acquisition ledger

c)

purchasing ledger

d)

bookkeeping ledger

e)

cash ledger

8.

The Statutory Financial Accounts summarize the financial statements for the (a)   year.

9.

Accounting standards are the same all over the world.

a)

True

b)

False

10.

____ ____ is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future.

(a)  

11.

At the end of an audit, the auditors will always sign off the accounts.

a)

True

b)

False

12.

In order to run 'substantive tests', the auditors will visit the factories and warehouses.

a)

True

b)

False

13.

By law, a public company has to publish its statutory accounts every year.

a)

True

b)

False

14.

The company must be careful or (a)   in its estimate of the value of things it owns.

15.

Nowadays companies use books or ledgers to prepare the accounts.

a)

True

b)

False

16.

Auditors want to know if a company's accounts offer a ___

a)

reliable and fair view

b)

true and fair view

c)

trustworthy and reliable view

d)

real and true view

17.

Internal auditor checks the company's accounts and writes a report on the accuracy of the financial statements.

a)

True

b)

False

18.

At the end of their tests the auditors first send _____

a)

qualified opinion

b)

management accounts

c)

the letter to management

d)

purchasing ledger

e)

a letter to shareholders

19.

The (a)   of a company want to know if the management are not hiding information or even committing fraud.

20.

A modern company is regulated by__

a)

regulators

b)

laws

c)

shareholders

21.

In a (a)   opinion the auditors point out the things that they cannot prove.

22.

The auditors usually inspect every document in detail.

a)

True

b)

False

23.

A public company has to do an external audit ___

a)

every quarter

b)

every week

c)

every month

d)

every year

24.

The auditors will inspect such documents as:

a)

invoices

b)

management letter

c)

qualified reports

d)

bank statements

e)

receipts

25.

Tick ALL the documents that the Statutory Financial Accounts include:

a)

management accounts

b)

balance sheet

c)

income statement

d)

auditors' report

e)

cash-flow statement

26.

The purpose of substantive tests is to know if the (a)   a company claims to own really exist.

27.

The auditors visit the factories and warehouses in order to physically see items recorded in books.

a)

True

b)

False

28.

The management accounts are prepared once a year.

a)

True

b)

False

29.

The auditors report is complete if they declare that "in their opinion" the accounts are accurate and give a ____ ____ ____ ____ of a company's position.

(a)  

30.

A document which describes what auditors have found and what needs to be corrected before they can sign off the accounts is called the _____ _____ _____.

(a)  

31.

(a)   accounts give an up-to-date statement of the company's current financial situation.

32.

Management accounts are published outside the company.

a)

TRUE

b)

FALSE