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Introduction to Principles of Accounting

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Book-keeping is the process of recording...

a)

transactions in books of accounts or by using a computerized system

b)

everything that takes place in a business.

c)

money spent every day.

d)

how much money is paid to workers.

2.

Accounting is the process that involves

a)

revealing how much money is in the bank

b)

budgeting what will be spent only

c)

reporting to stakeholders about potential profits

d)

preparing/presenting, analysing and interpreting financial statements

3.

Which of the following are accounting concept and principles?

Please click on the ones you think are right.

a)

Historical cost

b)

Conservatism

c)

Conjuction

d)

Accounting period

4.

Separate Business Entity define as

a)

A business and its owner are two separate entities. The business’s transactions must be accounted separately from the owner’s transactions

b)

It is assumed that a business will continue to expand and operate in the future without being closed or sold.

c)

Business activities can be divided into specific periods for example a month, a quarter, six months or a year.

5.

"Haziq Enterprise purchases a van for $80,000. For the next year the price of the lorry was reduce to $75,000. The value must be recorded is $80,000 because it is a cost value."

The above statement referring to which account principles..

a)

Going Concern

b)

Historical Cost

c)

Objectivity

d)

Full Disclosure

6.

Business should report relevant, reliable, timely, unbiased and free from mistakes or errors information about the business activities.

a)

Full Disclosure

b)

Objectivity

c)

Matching

d)

Conservatism

7.

Objectivity is the objective that company should achieve in certain accounting period.

a)

True

b)

False

8.

Which of the following are not the internal user of accounting information?

a)

Manager

b)

Financial institutions

c)

Business owners

d)

Current investor

9.

Which of the following is the external user of accounting information?

a)

Manager

b)

Financial institutions

c)

Business owners

d)

Current investor

10.

Which of the following is the internal user of accounting information?

a)

Manager

b)

Financial institutions

c)

Business owners

d)

Current investor

11.

The amount of cash paid in acquiring an asset is called

a)

Present Value

b)

Historical Value

c)

Net Realizable Value

d)

Current Replacement Value

12.

Which is the most important feature of Book Keeping?

a)

Recording Songs

b)

Finding out the profit

c)

Recording Transactions

d)

Summarising the Transactions

13.

Which is the most important feature of Book Keeping?

a)

Recording Songs

b)

Finding out the profit

c)

Recording Transactions

d)

Summarising the Transactions

14.

Which of the following are ethical principles of accounting?

I. confidentiality

II. integrity

III. trustworthiness

a)

I and II only

b)

I and III only

c)

II and III only

d)

I, II and III

15.

The state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgement, thereby allowing an individual to act with integrity and exercise objectivity and professional scepticism, is called:

a)

Professional Behaviour

b)

Objectivity

c)

Independence in appearance

d)

Independence of mind