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WorksheetsEasylink First Month Quiz - Accounting
Total questions: 20
Worksheet time: 20mins
What is the main purpose of Financial Accounting of a firm?
Preparation of General Purpose Financial Statements in compliance with Standards
Recording transactions to find the profit for the year
To communicate information for decision making of the stakeholders of the firm
Recording transactions for the use of managers
Who are the users of Management Accounting Reports?
Government and Auditors
Managers and Directors
Suppliers and Customers
All Employees
Which of the following statements about Management Accounting is true?
It provides on demand information for all stakeholders
It provides information as prescribed in the accounting standards
It contains only past information about a firm
It contains both past and future information about a firm
Which one of the following will fall under the definition of a liability?
Debtors
Cash
Owner's Equity
Bank Loan
Which of the following statements are false?
If you cannot work out a value for an item that will bring you future benefits, then you cannot keep this as an asset in your records.
A debtor is a debt to your business
A liability is a debt for your business
Liabilities will have an outflow of economic benefits in the future
It is a legal requirement to provide Financial Accounting Reports.
False
True
Which one of the following is not a component of Financial Accounting?
Notes
Inventory Changes Statement
Cash Flows Statement
Profit or loss Statement
Which one of the following can be considered as an asset?
Cash in Bank
Net Profit
Tax Payable
Creditors
The main difference between Management Accounting and Financial Accounting is;
Financial Accounting records only monetary transactions
Management accounting reports contain only non-monetary values
Financial Accounting is for all stakeholders and Management Accounting is for internal use only
Management accounting reports should be published annually.
Which of the following is not an element of Financial Accounting?
Equity
Liabilities
Purchases
Assets
The statement which reports the income and expenditure for a period is;
Cash Flow Statement
Notes
Statement of Changes in Equity
Statement of Profit or Loss
The statement which reports the assets, liabilities and owner's equity at a particular date;
Statement of Changes in Equity
Statement of Financial Position
Statement of Profit or Loss
Notes
Which one of the following is not an enhancing qualitative characteristic of financial information?
Understandability
Relevance
Timeliness
Verifiability
Which of the following is not an internal stakeholder?
Employee
Shareholder
Manager
Directors
Relevance and Timeliness are the two fundamental qualitative characteristics of Financial Information
True
False
Which of the following is not a qualitative characteristic of accounting information?
Reliability
Understandability
Comparability
Materiality
Which of the following is not an internal user of financial statements?
Board of Directors
Managers
Employees
Lenders
External users of accounting information are :
Researchers
Government
Potential Investors
All of the above
Current liabilities includes
Bills Payable
Creditors
Outstanding Expenses
All of the above
Which of the following is not a long-term liability?
Creditors
Term loan
Debentures
Capital
