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WorksheetsAccounting as a System and A Profession
Total questions: 20
Worksheet time: 19mins
What is the purpose of accounting?
to give people work to do
to allow users to make informed decisions
to know how much money the business owner has
to ascertain the amount of money the business has at the bank
What is book-keeping?
recording financial information
preparing source documents
the work of a librarian
ensuring that the books balance
All of the following are internal users of accounting information except ____
trade unions
investors
managers
employees
All of the following are external users of accounting information except _____
investors
banks
government
customers
Which of the following is not a career in the accounting field?
Book - Keeper
budget Analyst
Actuarial
Insurance Agent
Ethical principles in accounting are the fundamental principles accountant choose to abide by in order to carry out their duties professionally.
True
False
Which of the following is not a fundamental principle of accounting?
Integrity
Objectivity
Professional competence and due care
Social Responsibility
When making professional judgements, accountants should do all of the following except ______
ensure the business' performance looks better than it is
avoid bias
avoid conflict of interest
avoid undue influence of others
The following hold true for accountants who act inappropriately, EXCEPT _____
Missing deadlines for filing tax can lead to fines.
Being found guilty of fraud can lead to imprisonment.
Maligning a colleague could lead to dismissal.
A client being dissatisfied with work carried out can lead to a law suite.
The accounting cycle is____________
(i) the method of transport used for staff to come to work
(ii) the steps taken to produce a set of accounts
(iii) the period for which the business produces its accounts
(iv) the organisation’s tax year
(i) and (ii) only
(iii) and (iv) only
(ii) and (iii) only
(i) and (iv) only
The accounting equation may be expressed
as ________
Liabilities = Assets + Capital
Capital = Assets + Liabilities
Assets = Capital - Liabilities
Liabilities = Assets - Capital
Which one of the following is NOT an
asset?
cash at bank
government grants
accounts receivable
investment in other firms
Which one of the following is a liability?
accounts payable
interest from bank
accounts receivable
investment in other firms
Which one of the following is correct?
if there is no profit there is no capital
a loan received will reduce capital
capital is reduced by a loss
profit does not affect capital
Which of the following is INCORRECT?
Assets Liabilities Capital
(i) 18 270 5 290 12 980
(ii) 9 340 3 120 12 460
(iii) 15 160 6 380 21 540
(iv) 12 230 1 390 10 840
(i) and (ii) only
(ii) and (iii) only
(i) and (iv) only
(ii) and (iv) only
Shane J. has the following information in his books.
Investments $20 000, Stock $13 210, Accounts receivable $5 600, Bank $900, Accounts payable $4 200, Vehicles $13 000, Fixtures $17 500.
What is the value of current assets?
$19 710
$23 910
$50 500
$70 210
Kyle provided you with the following information on his balance sheet.
Closing Capital $65 400, Opening Capital $51 370 and Drawings of $5 620.
What is the value of his Net Profit or Net Loss?
$8 410 loss
$8 410 profit
$19650 loss
$19 650 profit
K. Paul presents you with the following information:
Opening Capital $25 340, Net Profit $12 690 and Drawings $3 200.
$34 830
$15 850
$41 230
$9 450
K. Paul introduced an additional $10 000 Cash into his business. How should this be treated in the Statement of Financial Position?
Included in Fixed Assets
Included in Current Assets
Subtracted from Working Capital
Added to Opening Capital
A
Accounting is ________
counting and recording money
systematically recording and analysing financial information
analysing and interpreting financial information
systematically recording, analysing and interpreting financial information
