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BT - Ch-8 History and Role of Accounting

Total questions: 67

Worksheet time: 2hrs 30mins

Name
Class
Date
1.

The financial manager is Responsible for ...................... And ........................ Of a Company.

a)

Banking and Cash

b)

Raising funds and Controlling financial

c)

Purchases and production

d)

Data and reports

2.

When Auditors are agree with the Financial Statement prepaid by the Company they issue a.................... Report

a)

Uncorrected Report

b)

Qualified Report

c)

Management attention report

d)

Unqualified Report

3.

Internal Auditors are ............................... Of the company.

a)

Cops

b)

Non Executive Directors

c)

Financial advisors

d)

Employees.

4.

Internal Auditors report on the effectiveness of .................................system.

a)

Security

b)

Internal control

c)

Legal

d)

External credit Control

5.

................................... Are required by law to prepare and publish accounts annually.

a)

Sole proprietorship

b)

Partnership

c)

Limited Companies

d)

Everyone who do trade.

6.

…………………………….is a way of recording, analyzing and summarizing transactions of a business.

a)

Accounting

b)

Auditing

c)

Statistics

d)

Corporate Reporting

7.

The Transaction are recorded in …………………..

a)

Book of Credit Entry

b)

General Record book

c)

Book of Prime Entry

d)

Cash book

8.

Transaction are analyzed and posted in Inventory ledger

a)

True

b)

False

9.

Final Transitions are Summarized in the ……………………

a)

Bank statement

b)

Financial Statement

c)

Profit and loss Account

d)

Purchase Register

10.

Accounts are produce to aid management in planning, control and Decision making, and to comply with statutory Regulation.

a)

True

b)

False

11.

1494............................... Explained the first written double entry system of book keeping.

a)

Karl Marks

b)

Leonardo de venci

c)

Luca Pacioli

d)

Mintzberg’s

12.

Some companies provide voluntarily specially prepared financial information for the issue for their employees this report is called. ...........................................

a)

Auditor Report

b)

Performance Report

c)

Worker Stake and benefit Report

d)

Employees Report

13.

The head of Accounts Department post in UK is usually called. .............................

a)

Chief Accountant

b)

Management Accountant

c)

Chartered Accountant

d)

Finance Director

14.

What are the Responsibilities of Financial Controller? Gave the best answer.

A. Routine Accounting

B. Provide Accounting Report for the other Departments C. Cashier duties and cash control

a)

A and B

b)

B ad C

c)

All of the above

d)

None of the above

15.

Which one of the following is not the job of Management Accountant?

a)

Cost accounting

b)

Prepare Financial Statement for the Stake holders

c)

Budgets and budgetary control

d)

Financial management of projects

16.

Which of the following is not the duty of Treasurer?

a)

Budgets and Cost accounting

b)

Rising Funds

c)

Cash flow control

d)

Investing surplus funds on the money market.

17.

Financial statement is prepared on the basis of no of......................... Concept

a)

Fundamental Accounting

b)

Accrual

c)

Future Profitability

d)

Corporate law

18.

Many Figures in the financial statement are derived from the application of........................ In putting fundamental accounting concept into practice

a)

Judgment

b)

Going Concern

c)

Accruals

d)

Trust

19.

The Statement of financial position must give a .................... View of the state affair of the company as at the end of the financial year.

a)

Complete

b)

Accountable

c)

True and Fair

d)

Lawful

20.

Proper Financial control ensures that the business is adequately.......................... To meet its obligations.

a)

Financed

b)

Balanced

c)

Ready

d)

Accountant

21.

Teeming and lading mean where Receipts for customers are misappropriated and this is then covered up by misposting future receipts.

a)

True

b)

False

22.

A ...................... Is a program which deal with one particular part of a business accounting system

a)

Software

b)

Module

c)

Record

d)

Inventory System

23.

Which of the following is not a Module of accounting system?

a)

Payables ledger

b)

Payroll

c)

Electric Generator

d)

Report Generator

24.

Set of Several Modules is known as......................

a)

Pairs

b)

Module system

c)

Data base

d)

Suite

25.

When financial statement is prepared with too much detail it is also a ……………………………..

a)

A defect which can cause difficulties of understanding

b)

Quality of account

c)

Standard system of presenting accounting records

d)

None of the above

26.

Which of the following is not the section of financial accounts department?

a)

Payroll

b)

Research and development

c)

Purchase ledger

d)

Sales ledger and credit control

27.

One of the key responsibility of the internal auditor is to control the risk of ……………………. And ………………………….

A. Theft

B. Fraud

C. Error

D. Accounting Error

a)

A and B

b)

A and C

c)

B and C

d)

C and D

28.

Accounting Standard (and company law) prescribe that a company should ……………………………………………………

a)

Prepare accounts on the basis and needs of its requirement.

b)

Prepare accounts to show positive activities in the company.

c)

Prepare accounts that not disappoint the stake holders.

d)

Produce accounts to be presented to the shareholders.

29.

Financial management is a separate discipline from both management and financial accounting?

a)

True

b)

False

30.

Which of the following are not the decisions of the financial managers?

a)

Should the firm borrow from a bank or raise funds by issuing right shares.

b)

What will be the new recruitment policy of the company

c)

How much should be paid as a dividend and bonus.

d)

How much credit and discount to paid to the customers.

31.

IASB was setup in 1973 to work for the improvement and harmonization of financial reporting.

a)

True

b)

False

32.

What does GAAP stand for?

a)

Group audit and accountancy policy

b)

Generally accepted audit policy

c)

Generally accepted accounting principles

d)

Guidelines for accepted accounting principles

33.

Accounting standards fails to eliminate subjectivity.

a)

True

b)

False

34.

Accounting concepts are applied by individuals using their subjective judgment.

a)

True

b)

False

35.

Once the goods have been dispatched to the customer. Responsibility then passes to the …………………………………….to invoice the customer for the goods and to ensure that payment is received.

a)

Production department

b)

H.R department

c)

Purchasing department

d)

Accounts department

36.

Which of the following personnel in an organization would not be involved in the purchase of materials?

a)

Credit controller

b)

Accountant

c)

Stores manager

d)

Purchasing manage

37.

Financial control procedures exist specifically to ensure that. State the one which is incorrect.

a)

Financial transactions are properly carried out

b)

The assets of the business are safeguarded

c)

Accurate and timely management information is produced

d)

Effective human recourse will be adopted for best results.

38.

Following are the weakness of effective financial control? State the one which is incorrect.

a)

Customer fails to pay in time.

b)

Supplier are not paid in time

c)

Effective credit control procedure.

d)

Unauthorized purchases being made. E. Cash and cheques are being missing.

39.

Which of the following are the standing data in the payroll files?

Gave the best 2 answers?

A. Personal details

B. Rate of pay

C. Details of deduction

D. Gross pay to date / tax to date.

E. Holidays details

F. Pension contribution etc.

a)

A and B

b)

B And C

c)

C and D

d)

D and E

40.

Clock card / time sheet and amount of bonus are the two main inputs in wages system of the payroll system.

a)

True

b)

False

41.

Which of the following are not the user of the financial statement and accounting information?

a)

Managers of the company

b)

Shareholders of the company

c)

Print & electronic media and social websites, blogs etc.

d)

General public, govt. Suppliers and customers of the company.

42.

The separation of ownership and control refers to the situation where the owners of the company are always different people then the director of the company.

a)

True

b)

False

43.

……………………………….. Is the system by which companies are directed and controlled?

a)

Board of directors

b)

Management information system

c)

Computerized accounting system

d)

Corporate governance

44.

The innovation perspective reports mean …………………………………

a)

The traditional information of profits, capital employed and etc.

b)

How well customer s wants have been satisfied

c)

Internal efficiency of the business.

d)

On the development of new products and service.

45.

……………………………………. Means the traditional information of profits, capital employed etc.

a)

Customer perspective report

b)

Internal perspective report

c)

Financial perspective report

d)

Innovation perspective report

46.

…………………………… means expanding the traditional reporting framework to take into account ecological (environment) and social performance in addition to financial performance.

a)

Ecological reporting

b)

Triple bottom line reporting

c)

Total reporting

d)

Shareholder and stakeholder reporting

47.

Triple bottom line reporting is also known as "people, planet, profit" or "the three pillars.

a)

True

b)

False

48.

A smaller company should have at least ……………………….. None executive directors? Gave the best answer.

a)

Half

b)

One third of total Directors

c)

Minimum 4 of them

d)

At least 2 of them

49.

Do you think that a recent retired director finance of a company can be appointed as the NED of the same company?

a)

No, it is not allowed in law

b)

Yes he can because he is a natural person now.

c)

Yes but the board has to gave a valid reason of its selection along with the assurance that he will remain neutral as NED.

d)

He has served the company as finance director. He can’t hold this office.

50.

The whole board of directors should determine the remuneration of the NEDs, or the board could delegate this responsibility to a sub-committee of the same board.

a)

True

b)

False

51.

The company’s annual report should describe the work of the ……………………………….

a)

Internal auditors

b)

Audit committee

c)

Rumination committee

d)

Internal and risk control

52.

Internal audit is not required by law.

a)

True

b)

False

53.

The main role of the external auditor is to advice the management on whether the organization has a sound system of internal control?

a)

True

b)

False

54.

Internal auditor covers all area of an organization. Operations, administration, billing, finance and all others have to be checked by them.

a)

True

b)

False

55.

…………………… have the responsibility to advice and make recommendations on the internal control and corporate governance.

a)

External auditors

b)

Outsource advisors

c)

Manager Operations

d)

Internal auditors

56.

Company …………………….. Have a legal requirement to produce true and fair annual financial statement.

a)

Accountants

b)

External auditors

c)

Internal auditors

d)

Directors

57.

……………………… haves an unavoidable independence problem. They can be influenced by the top management.

a)

Accountants

b)

External auditors

c)

Internal auditors

d)

Directors

58.

Only certain people are legally allowed to be internal auditor by law.

a)

True

b)

False

59.

The …………………………. Are usually appoints by the shareholders. And they also reports to the shareholders.

a)

Accountants

b)

External auditors

c)

Internal auditors

d)

Directors

60.

Can a company hire an external auditing firm to do its internal audit?

a)

Yes

b)

No

61.

The principles of accounting in manual accounting are different from computerized accounting system.

a)

True

b)

False

62.

Computer base accounting system is generally very bulky both to handle and to store.

a)

True

b)

False

63.

The preparation and filing of accounts by limited companies each year is required by which of the following?

a)

Codes of corporate governance

b)

National legislation

c)

International Accounting Standards

d)

None of these

64.

Spreadsheets too can often used both in financial accounting and cost accounting.

a)

True

b)

False

65.

In term of technology which of the following come first in order of invention.

1. Digital Computer

2. Calculator

3. Spread Sheet.

a)

1, 3 and 2

b)

2, 3 and 1

c)

1, 2 and 3

d)

2, 1 and 3

66.

A database may be described as a 'pool' of data, which can be used by any number of applications. Its use is not restricted to the accounts department.

a)

True

b)

False

67.

Which of the following is not the module of an accounting package?

Gave the best answer?

A. Invoicing

B. Inventory

C. Receivables ledger

D. Payables ledger

E. All of the above.

a)

Only A and C

b)

B,C and D

c)

A, B and C

d)

E