WorksheetsACCA F1 Role of Accounting
Total questions: 25
Worksheet time: 50mins
The purpose of Accounting is
to make sound decisions
to meet taxation requirements
to provide financial information and advice
to make money
Accounting is best described as:
recording, analysing, collecting, reporting and interpreting information
analysing, recording, collecting, interpreting and reporting information
interpreting, collecting, reporting, recording and analysing information
collecting, recording, reporting, analysing, and interpreting information
Accounting guarantees that the decision makers make the right decision
true
false
Good financial information will improve the chances of good decisions being made
False
True
Non financial information is best described as:
monetary figures expressed in accounting reports
Net Profit and Owner's equity
cash at bank levels
information not found in financial statements and is not expressed in dollars or cents
Which of the following is NOT an objective of financial accounting?
To ensure that the preparation of financial statements complies with the law (Companies Act) and accounting standards
To create a historical record of the financial affairs of a business
To produce business plans, forecasts and budgeting information
To provide information to the management of a business organisation for decision making purposes
Which THREE of the following are duties of a financial accountant?
Perform ratio analysis to compare current performance of the business with past performance or performance of similar businesses
Check financial records to maintain accuracy and reduce fraud
To liaise with management to prepare cash budgets
Prepare accounts for auditing and publication as and when required
Financial accounting is historical and deals with operations which have already occured.
True
False
Financial accountants are concerned with collecting and analysing costs and revenues of current and future activities in order to aid decision-making
True
False
Which of the following documents would a financial accountant NOT prepare?
Income Statement
Cash Budget
Statement of Financial Position
Which of the following is NOT a problem associated with financial accounting information?
It deals with historic records - things which have already occured and you cannot change what has already happened
The information provided is concerned with the whole firm - it does not provide detailed information on individual business areas
Ensures the business complies with law (Companies Act) and standards (laid out by professional accounting bodies)
When preparing financial statements, the accounts must reflect a "true and fair" view of the business activities.
Financial information is only useful if it is.... (select three options)
Relevant
Unreliable
Understandable
Comparable
………………… is the process of identifying, recording and classifying, summarizing, analyzing and interpreting business transaction.
Bookkeeping
Accounting
Transaction
Financing
What is the function of financial report to management in any organization?
To make decision for company
To supervise their workers
To enable business ongoing basis
To acquire additional capital
Which types of business offers share for sale to the public?
Sole Proprietorship
Partnership
Public Limited Company
Private Limited Company
What is the function of financial Accounting?
To give an information about financial position of business
To determine the amount of profit and loss
To ensure salary increments and other benefit
To know the ability of a company or business to repay debts
Which of the following are not the external users of accounting information?
Management
Banks
Creditors
Supplier
Which of the following is not the role of an accountant?
manage and run the business
comply with the accounting standard
prepare financial reports
communicate the financial information to stakeholders
Which of the following is not the internal user of financial information?
Management of Finance
Business Owner
Management
Potential investor
Which of the following would not be considered as the external users of accounting data?
Malayan Banking Berhad
Inland Revenue Board
Potential investor
Marketing Manager
The accounting process are as follows except
Identifying
Recording
Moving
Reporting
The following are internal users except
Management
Investor
Worker
Internal Auditor
The role of the investor as an external user is
To decide whether to buy more shares or dispose the shares they have
Making routine decisions and controlling operations
To determine the amount of tax to be collected by them
Identify and evaluate business performance for salary and bonus
Who issues International Financial Reporting Standards?
The government
The International Accounting Standards Board
The stock exchange
The IFRS Advisory Committee
Which of the following statements is/are true?
1- The IFRS Interpretations Committee is a forum for the IASB to consult with the outside world.
2 -The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB.
3 - One of the objectives of the IFRS Foundation is to bring about convergence of national accounting standards and IFRSs.
1 and 3 only
2 only
2 and 3 only
3 only
