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TOPIC 1

Total questions: 40

Worksheet time: 25mins

Name
Class
Date
1.

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

a)

Financial Accounting

b)

Managerial Accounting

c)

Tax Accounting

d)

Forensic Accounting

2.

Which one of the following is not an external user of accounting information?

a)

Investor

b)

Creditor

c)

Manager

d)

Customer

3.

Which branch of accounting is concerned with analyzing costs of products or services rendered in a business?

a)

Auditing

b)

Cost accounting

c)

Financial Accounting

d)

Management Accounting

e)

Tax Accounting

4.

Which branch of accounting deals with the calculate the profit or loss of a business during a period and to provide an accurate picture of the financial position of the business as on a particular date to investors or banks?

a)

Auditing

b)

Cost accounting

c)

Financial Accounting

d)

Tax accounting

5.

Book keeping is mainly concerned with

a)

Recording of financial data

b)

Designing the systems in recording, classifying, and summarizing the recorded data

c)

Interpreting the data for internal and external users

d)

None of the above

6.

The process of identify, classify, recording and communicating business transaction is called as book-keeping.

a)

True

b)

False

7.

Which of the following is definition of accounting?

a)

It's a process of classifying, recording, and summarizing the business transaction in monetary unit.

b)

It's a process of recording, classifying, and summarizing the business transaction in monetary unit.

c)

It's a process of classifying, recording and summarizing the business transaction interpreting the data in assist stakeholders in making decision.

8.

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

a)

Financial Accounting

b)

Managerial Accounting

c)

Tax Accounting

d)

Forensic Accounting

9.

Define the bookkeeping

a)

It's a process of classifying, recording and summarizing the business transaction.

b)

Its a process of recording, summarizing and classifying the business transactions.

c)

It's a process of classifying, summarizing and recording the business transactions.

10.

Which branch of accounting embraces the preparation of various tax returns and tax planning necessary to minimize the impact of taxes on the firm?

a)

Auditing

b)

Cost accounting

c)

Financial accounting

d)

Tax accounting

11.

Which branch of accounting is concerned with analyzing costs of products or services rendered in a business?

a)

Auditing

b)

Cost accounting

c)

Financial Accounting

d)

Management Accounting

e)

Tax Accounting

12.

Which branch of accounting deals with the calculate the profit or loss of a business during a period and to provide an accurate picture of the financial position of the business as on a particular date to investors or banks?

a)

Auditing

b)

Cost accounting

c)

Financial Accounting

d)

Tax accounting

13.

The starting point of the accounting process is

a)

communicating information to users.

b)

identifying economic events.

c)

recording economic events.

d)

None of these answers are correct.

14.

Communication of economic events is the part of the accounting process that involves

a)

identifying economic events

b)

quantifying transactions into dollars and cents.

c)

preparing accounting reports

d)

recording and classifying information.

15.

The accounting process involves all of the following except

a)

identifying economic transactions that are relevant to the business.

b)

communicating financial information to users by preparing financial reports.

c)

recording non quantifiable economic events.

d)

analyzing and interpreting financial reports

16.

Which of the following would not be considered an external user of accounting data for the LMN Company?

a)

LHDN

b)

Management

c)

Creditors.

d)

Customers.

17.

Which of the following would not be considered internal users of accounting data for a company?

a)

The president of a company

b)

The controller of a company.

c)

Creditors of a company

d)

Salesmen of the company.

18.

Which of the following is an external user of accounting information?

a)

Labor unions.

b)

Finance directors

c)

Company officers.

d)

Managers

19.
a)

Internal user

b)

External user

20.
a)

Internal users

b)

External users

21.
a)

Internal users

b)

External users

22.

Marketing department

a)

Internal Users

b)

External Users

23.
a)

Internal users

b)

External users

24.
a)

Internal users

b)

External users

25.

Which of the following business has unlimited liability

a)

Sole trader

b)

Limited Liability Partnership

c)

Private Limited Company

d)

Public Limited Company

26.

Which type of business organisation has the following characteristics?

- conducts business separate from its owners

- the owners have limited liability

- the organisation is a taxable entity

a)

Sole trader

b)

Partnership

c)

Company/corporation

d)

None of the above

27.

Which of the following would NOT be considered as internal users of accounting data for a company?

a)

External auditor

b)

CEO of the company

c)

President of the company

d)

Salesman of the company

28.

Which of the following are the types of financial statements


1.Statement of Cash Flow

2.Statement of Comprehensive Income

3.Statement of Financial Position

4. Trial balance

a)

1, 2, 3 and 4

b)

1, 2 and 3

c)

2 and 4

d)

2, 3 and 4

29.

Which type of business organization has the following characteristics?

  • is owned by 2 to 20 person
  • has unlimited liability
  • has no legal obligation to audit the accounts
a)

sole trader

b)

partnership

c)

company

d)

none of above

30.

Which type of business organization has a separate legal entity from its owners, and the owners are not liable for debts of business?

a)

Sole trader

b)

Partnership

c)

Limited Company

d)

None of the above

31.

Statement of Cash Flow shows the movement in owner's equity over a period

a)

True

b)

False

32.

A partnership business normally owned by 2 to 50 partners

a)

True

b)

False

33.

Proton Berhad is example of public limited company.

a)

True

b)

False

34.

Which one is true about Bookkeeping?

a)

More extensive and involving a thorough work

b)

Is an information system

c)

Is a part of accounting

35.

Person in charge of Accounting is known as...

a)

Accountant

b)

Accounts Clerk

c)

Manager of a company

36.

Types of Financial Statements are..

a)

Statement of Comprehensive Income, Statement of Owner’s Equity and Statement of Financial Position

b)

Statement of Comprehensive Income, Statement of Owner’s Equity, Statement of Financial Position and Statement of Cash Flows

c)

Statement of Comprehensive Income, Statement of Owner’s Equity, Statement of Financial Position and Budget

37.

There are......branches of accounting

a)

6

b)

5

c)

4

38.

What is the function of financial Accounting?

a)

To give an information about financial position of business

b)

To determine the amount of profit and loss

c)

To ensure salary increments and other benefit

d)

To know the ability of a company or business to repay debts

39.

Which of the following is not the field of accounting?

a)

Management Accounting

b)

Financial Accounting

c)

Tax Accounting

d)

Principle Accounting

40.

Which of the following would not be considered as the external users of accounting data?

a)

Malayan Banking Berhad

b)

Inland Revenue Board

c)

Potential investor

d)

Marketing Manager