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WorksheetsITA - Accounting Basics
Total questions: 15
Worksheet time: 10mins
Accounting is ________
counting and recording money.
systematically recording and analysing financial information.
analysing and interpreting financial information.
systematically recording, analysing and interpreting financial information.
Accounting is done ______
to give smart people work to do.
to know how much money the business owner has.
to allow users to make informed financial decisions.
to ascertain the amount of money a business has at the bank.
Accounting is used for all of the following EXCEPT for _________
going on vacation.
measuring wealth.
assisting in decision making.
investing in startup and expansion of a business.
All of the following are internal users of accounting information EXCEPT ________
trade unions
accountant
managers
employees
Government would use accounting information from a business to ______
determine if the business is profitable.
negotiate salary increase for employees.
determine the amount of tax needed to be paid.
determine if a loan should be given to the business.
Trade unions uses accounting information to ______
negotiate working conditions for employees.
assess the viability of an investment.
determine how much tax needs to be paid.
budget for the year.
What are financial statements?
Statements given by the bank with details of the business' account.
Documents prepared by a business detailing the financial affairs.
Statements sent to government with details of employees' pay.
Documents received from customers about their finances.
Which one of the following is NOT considered a financial statement?
Income Statement
Balance Sheet
Cash Flow Statement
Tax Return
Which of the following statements is INCORRECT?
A Balance Sheet shows the financial position of a business.
An Income Statement shows how much profit or loss is made in a business.
A Cash Flow Statement shows how much cash comes in and goes out of a business.
A Tax Return shows how much tax customers owe the business.
Which of the following is NOT a benefit of using technology in the accounting process?
It allows accounting work to be done quickly and accurately.
Documents can be generated automatically.
Cost of installation is very high.
There is quick updating of information.
Expenses can be defined as ________
the cost of operating a business.
money earned when operating a business.
cost of buying new equipment for a business.
None of the above.
Income can be defined as _______
cost of operating a business.
money earned from operating a business.
cost of buying new equipment.
None of the above.
Profit can be calculated by _______
subtracting expenses from income.
adding expenses to income.
subtracting income from expenses.
subtracting tax from expenses.
Which of the following does NOT describe a non-profit making organisation?
It does not trade
It provides social or voluntary services to society
It provides recreational facility for members
It operates to make a profit
Which of the following would NOT be considered as a non-profit making organisation?
Church
Marchand Football Club
WASCO
St. Lucia Cancer Society
