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Introduction to Accounting and Accounting Ethics and Concepts

Total questions: 45

Worksheet time: 2hrs 59mins

Name
Class
Date
1.

Which of the following is not part of accounting

a)

Summarizing data

b)

Recording transactions

c)

Interpreting Financial Statements

d)

Sharing accounting data with other businesses

2.

Which of the following allows a business to be successful?

a)

Making a loss

b)

Making a profit

c)

Making constant profit

d)

Making constant loss

3.

What is book-keeping?

4 lines
4.

A person who uses accounting information that is not part of the business is known as...

(a)  

5.

The name of a person who has interest in your business and is willing to put their money as contribution to your business with a hope of making a return is called ...

(a)  

6.

A business where there is one owner is known as a

a)

Partnership

b)

Company

c)

Sole Trader

d)

Entrepreneur

7.

Which of the following jobs can be obtained without an accounting degree or qualification?

a)

Bank Clerk

b)

Accounts assistant

c)

Book-keeper

d)

Consultant

8.

What is the difference between ethics and professional ethics

4 lines
9.

Which of the following are fundamental principles of ethical behavior?

a)

Integrity

b)

Objectivity

c)

Fraud

d)

Subjectivity

10.

What is the difference between being objective and subjective?

4 lines
11.

Which of the following is not an internal user of accounting information?

a)

Owner

b)

Managers

c)

Employees

d)

Government

12.

Consistency means you choose different accounting methods each year. True or False

a)

True

b)

False

13.

Being cautious in accounting especially with reporting profits is called

(a)  

14.

When you are expected to remain in operation for a long time or far into the future it is called

(a)  

15.

When revenues are greater than expenses it means that the business is making a

a)

Profit

b)

Loss

c)

Break even

d)

Sale

16.

When the money earned is equal to what was spent it is called...

a)

Profit Margin

b)

Sale

c)

Loss

d)

Break even

17.

A business that does not focus on making profits but instead provides a benefit to members is called

(a)  

18.

What are 2 consequences or penalties of inappropriate application of accounting principles?

4 lines
19.

A motor car cost $30,000 and this was the amount recorded in our books this shows that we are applying which concept

a)

Historical cost

b)

Matching

c)

Dual aspect

d)

consistency

20.

The concept that pertains to these two facts: there is a monetary value for any transaction and that a transaction can be measured in money.

(a)  

21.

The difference between ethics and legality is the fact one pertains to right and wrong decisions while the other is punishable by law is this true or false?

a)

True

b)

False

22.

The IESBA Code of Ethics are as follows:

Integrity

Objectivity

Professional competence and due care

Confidentiality

Professional behavior

a)

True

b)

False

23.

Is treating people with respect and courtesy an example of an ethical principle that should be adhered to in the workplace?

a)

Yes

b)

No

24.

Is causing conflict in the workplace an example of an appropriate ethical principle?

a)

Yes

b)

No

25.

Which of the following are results of inappropriate application of account principles?

a)

Fines/Imprisonment

b)

Termination of contract

c)

Loss of trust and integrity

d)

A bonus

26.

Which of the following is not an example of an accounting concept or convention

a)

Prudence

b)

Matching Concept

c)

Profitability

d)

Historical cost concept

27.

Which of the following is an example of an accounting concept or convention?

a)

Money measurement

b)

Profitability

c)

Capital Investment

d)

Costing

28.

Which of the following is not a formal business structure?

a)

Partnership

b)

Companies

c)

Sole Traders

d)

Farmer

29.

Define Accounting

4 lines
30.

Give 1 reason why you think a partnership is better than a sole trader business

4 lines
31.

When recording items of importance and not trivial resources we call this concept:

(a)  

32.

Give any 2 reasons why accounting is important in business

4 lines
33.

Examples of the following users of accounting information all fall under what name?

Employees, Managers and Owners

(a)  

34.

When expenses are matched to revenues as they incur is called what concept?

(a)  

35.

The following formula is found under which concept?

Assets= Capital + Liabilities

(a)  

36.

Write out all the parts of the accounting cycle

4 lines
37.

The first part of the accounting cycle is:

a)

Analyzing Source Documents

b)

Ledgers

c)

Journalizing

d)

Adjusting entries

38.

The second part of the accounting cycle is:

a)

Analyzing source documents

b)

Journalizing

c)

Ledger entries

d)

Adjusting Entries

39.

An auditor, company accountant and a financial consultant all require educational degrees or certificates in order to obtain these job positions. Is this True or False?

a)

True

b)

False

40.

Extracting a Trial balance is NOT PART of the Accounting Cycle is this True or False?

a)

True

b)

False

41.

Which of the following persons uses accounting information to decide whether they should risk putting money into a company in hopes of making a return

a)

Investor

b)

Shareholder

c)

Owner

d)

Manager

42.

What is the name of the user of accounting information that ensures that the business is paying taxes and not taking part in any illegal activities?

a)

Investor

b)

Owner

c)

Government

d)

Manager

43.

Employees are classed as what type of user of accounting information?

a)

External

b)

Internal

c)

Financial

d)

Non financial

44.

Accounting concepts and conventions are used in preparing financial statements of a business. (a) Briefly explain any three of the following concepts: (i) going concern (ii) accruals (iii) consistency (iv) prudence.

4 lines
45.

What are some features of a sole trader business?

2 lines