WorksheetsPOA Revision
Total questions: 43
Worksheet time: 24mins
1. Which of the following best describes “Accounting”?
Assuming accountability for all aspects of the firm’s management.
Coordinating and interpreting financial data for use in management decision making
Keeping an accurate account of the firm’s business dealings with debtors and creditors.
Keeping accounts up-dated so as to ensure that the business makes maximum profits.
3. Capital is contributed to the business by:
A) A loan from the bank
B) Assets
C) Capital
D) Owner
5. Bookkeeping is mainly concerned with?
A) Recording the Economic Activities
B) Interpreting the data
C) Designing the systems for recording, classifying and summarizing
D) The recording of financial information, particularly transactions, in a systematic way.
9. The accounting cycle starts with the:
A) preparation of ledger accounts
B) preparation of trial balance
C) Collecting all business transaction
D) preparation of adjusting entries
10. What is the final step of the accounting cycle?
A) Preparation of financial statement
B) Adjustments
C) Closing accounts
D) Post-closing trial balance
Which of the following BEST describes the accounting equation?
Capital = Assets - Liabilities
Assets + Capital = Expenses
Capital = Liabilities
Liabilities = Assets + Capital
Government
Internal users
External users
Who utilize accounting information to make lending decisions :
Investors
Customers
Creditors
Employees
who may need accounting information to decide which products to buy from which companies:
Investors
Creditors
Customers
Company's owner
Users of accounting information are:
External users
External users and Internal users
Subsidiary users
Internal users
Employees use accounting information to
run the business
make lending decisions
determine a company's profitability and profit sharing
decide which products to buy from which companies
The usual sequence of steps in the transaction recording process is
journal --> analyze --> ledger.
analyze --> journal --> ledger.
journal --> ledger --> analyze.
ledger --> journal --> analyze.
After transaction information has been recorded in the journal, it is transferred to the
trial balance.
income statement.
book of original entry.
ledger.
A list of accounts and their balances at a given time is called a(n)
journal.
posting.
trial balance.
income statement.
The accounting cycle begins by recording _____________ in the form of journal entries.
Business transactions
Financial information
Corporate minutes
Business contracts
A form describing the goods or services sold, the quantity, the price, and the terms of sale.
Source document
Invoice
journal
The business bought goods on credit from supplier
Invoice received
Invoice issued
Receipt received
Receipt issued
The business returned some faulty goods to supplier
Debit note received
Debit note issued
Credit note recieved
Credit note issued
Issued by the seller to the buyer in the event of a credit transaction.
Invoice
Delivery Notes
Debit Notes
Credit Notes
Purchase Order
The purpose of accounting is to....
communicate information to interested users so that they can make informed decisions
communicate financial and non-financial information to interested users so that they can make informed decisions
communicate non-financial information to interested users so that they can make informed decisions
State the source document issued or received for the following transaction:
Cash sales to Rickey.
receipt / cash register slip issued
payment voucher issued
remittance advice issued
debit note issued
State the source document issued or received for the following transaction:
Cash sales to Rickey.
receipt / cash register slip issued
payment voucher issued
remittance advice issued
debit note issued
Two common financial statements prepared are the
Trading and Profit and Loss Account and Balance Sheet
Balance Sheet and Suspense Account
Cash Book and Trading and Profit and Loss Account
Control Account and Balance Sheet
Which of the following statements is true?
Accounting includes Classifying data, Summarising data and recording financial data.
Financial reports can be prepared right after book-keeping is complete.
Financial reports and statements are useful to owners/investors, managers, governments, suppliers, employees and customers.
Financial reports and statements are only useful to managers.
The usual sequence of steps in the transaction recording process is
journal --> source documentation --> ledger.
source documentation --> journal --> ledger.
journal --> ledger --> source documentation.
ledger --> journal --> source documentation.
The fifth step in the recording process is to
prepare financial statements.
adjust entries.
post to a journal.
prepare a trial balance.
Employees use accounting information to
run the business
make lending decisions
determine a company's profitability and profit sharing
decide which products to buy from which companies
Why do government and tax authorities need accounting information?
to determine if its financial statement are in accordance with the rules and regulations
to determine how much business earns in order to assess its tax liabilities
to have a strong economic structure and keeping abreast of global economic
(a) wants to know whether or not the business will be able to repay loans or any money borrowed from them.
Identify the type of user: Prospective partners
Internal
External
All of the following are software used in accounting EXCEPT
Acc pac
MYOB
Paypal
Peach Tree
All of the following are advantages of using technology in accounting EXCEPT
Simplicity
Technical Issues
Reliability
Ability to collaborate
All of the following are advantages of using technology in accounting EXCEPT
Simplicity
Technical Issues
Reliability
Ability to collaborate
Microsoft Excel can be used as an accounting software
True
False
A (a) is used to store accounting information and prepare financial records such as Balance Sheet, Income Statement, etc.
Which one is not a liability?
Mobile Phone Bill
Bank Loan
Bank Balance
money owed for goods
Property owned by a business is called____
Liability
Asset
Property
Net Worth
Current Assets include cash or other assets that are expected to be converted to cash within a year
True
False
Current Assets include cash or other assets that are expected to be converted to cash within a year
True
False
What are liabilities?
Money that the business has in stock
Money owed by the business to banks or suppliers
The amount of money owed to shareholders
Select the item which is a fixed asset
Select the item which is not a component of a balance sheet.
Fixed Assets
Current Assets
Current Liabilities
Expenses
Which item would represent a liability in a business?
