WorksheetsFundamentals of ABM 1 (Summative Test 1)
Total questions: 25
Worksheet time: 38mins
1E) Who among the following is recognized as the "Father of Modern Accounting"?
Benedetto
Cotrugli
Luca Bartolomes
Pacioli
Amatino
Manucci
Jacques
Savary
2A) The acronym "CISA" stands for?
Certified
Information
Security
Auditor
Certified
Inductive
Systems
Auditing
Certified
Information
Systems
Auditor
Community
Information
Sharing
Architecture
3D) Common quantitative factors include calculating different ratios (debt/equity, current ratio) and considering different (a) (net income. net assets).
4A) It refers to the examination of financial statements by an independent party with the purpose of expressing an opinion as to fairness of presentation and compliance with GAAP.
Cost
Accounting
Auditing
Internal
Auditing
External
Auditing
5A) According to this institution, accounting is a discipline, well-equipped with techniques and methods through which all types of transactions measurable in terms of money or money’s worth, can be recorded, classified, and summarized in a proper and systematic way.
International
Accounting
Standard
Committee
American Institute of Certified Public Accountants
American
Accounting
Association
Accounting
Standards
Council
6E) It is the systematic recording of financial transactions and presentation of the related information of the appropriate persons.
Auditing
Bookkeeping
Accounting
Business
Management
7D) Managerial accounting involves financial analysis, budgeting and forecasting, (a) , evaluation of business decisions, and similar areas.
8E) They are the persons who need information to help them decide whether they should invest in the business.
Customers
Potential
investors
Middle-level
management
Suppliers
9A) (a) analyze actual and standard costs to help managers determine future courses of action regarding the company's operations.
10D) The objective of (a) is to provide information about the financial position, financial performance, and cash flows of a business that is useful to key personalities who are making economic decisions.
11E) The following are the main branches of accounting,
EXCEPT ______.
Financial Accounting
Government
Accounting
Accounting
Education
Private
Accounting
12E) Which of the following is NOT considered as an external user?
Top-level
management
Regulatory
agencies
Taxing
authorities
Suppliers
13D) Accounting is a systematic method consisting of definite techniques and its proper application requires applied skill and expertise.
Accounting is a process.
Accounting is an art.
Accounting is a means and not an end.
Accounting deals with financial information and transactions.
14A) According to ________, accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users.
Slavin and Reynolds
A. W.
Johnson
Weygandt, Kieso and Kimmel
American Accounting
Association
15D) (a) means that businesses should be transparent about their performance and standing to its stakeholders.
16A) It is the process of writing down or keeping records of business transactions.
Recording
Classifying
Summarizing
Interpreting
17A) It focuses on evaluating the adequacy of a company’s internal control structure by testing segregation of duties, policies and procedures, degrees of authorization, and other controls implemented by management.
Budgeting
Internal
Auditing
External
Auditing
International
Accounting
18D) (a) are those with direct interest over the company. They use financial information to protect their own stake in the entity. They include owners, management, employees, tax authorities, suppliers, creditors, and customers.
19A) The acronym "FRSC" stands for?
Financial
Reporting
Standard
Committee
Financial
Regulation
Systems
Council
Financial
Reporting
Standard
Council
Financial
Regulation
Security
Committee
20E) It is the phase of accounting involved in grouping similar items that have been recorded.
Recording
Classifying
Summarizing
Interpreting
21A) Accounting is a service function/activity that collects, processes and communicates the financial information of any entity. This discipline of knowledge has been evolved to meet the need of financial information required by different interested groups.
Accounting is an art.
Accounting is an information system.
Accounting deals with information and financial transactions.
Accounting is a process.
22D) A (a) of a company should include looking at both the qualitative and quantitative factors that would impact decision-making.
23A) Investors is to investment decisions
while ________ is to compliance decisions.
Owners
Government
Tax
authorities
Regulatory
authorities
24D) Why are CREDITORS interested in the accounting information
of a business entity?
it is used for analyzing the viability and profitability of their investments
it enables them to assess the capability of a business to pay its obligations
it allows them to calculate the debt/equity ratio of the entity directly related to its business worth
it is of great assistance for planning, controlling and decision-making process
25E) It shows the summary of the sources and uses of
cash in the business.
Statement of financial position
Statement of cash flows
Statement of changes in equity
Statement of comprehensive income
