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Introduction to Accounting

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Accounting aims to communicate financial information to investors only.

a)

True

b)

False

2.

Accounting deals with quantifiable information.

a)

True

b)

False

3.

Which is the last step of accounting as a process of information?

a)

Accountancy refers to the art of classifying the recorded transactions under their respective accounts

b)

Preparation of financial statement

c)

Interpret financial data

d)

All of the choices

4.

The earliest accounting was founded by?

a)

Egyptian

b)

Eastern

c)

Roman

d)

Greek

5.

All of the following are functions of Accounting, except:

a)

shorting

b)

summarizing

c)

recording

d)

interpreting

6.

Which of the following is not true?

a)

Accounting is a communication tool that is useful to both internal and external decision-makers.

b)

Accounting is useful only to profit-oriented organizations.

c)

Accounting is the language of business.

d)

Accounting is not an exact science.

7.

Which is the last step of accounting as a process of information?

a)

Communication of infromation

b)

Recording the transaction

c)

Analysis and interpretation of information

d)

Preparation of financial statement

8.

Accounting functions which referred to collecting and communicating economic information about the business enterprise.

a)

Financial Position

b)

Interpreting Recording

c)

Decision Making

d)

Information System

9.

Which of the following is the most appropriate definition for Accountancy?

a)

Accountancy refers to the art of classifying the recorded transactions under their respective accounts.

b)

Accountancy refers to the systematic knowledge of accounting.

c)

Accountancy refers to the art of communicating the financial transactions to accounting users.

d)

Accountancy refers to the process of recording financial transactions in the order of their occurrence.

10.

The basic function of financial accounting is to

a)

Assist the management in performing functions effectively

b)

Record all business transaction

c)

Interpret financial data

d)

No correct answer

11.

It is the systematic analysis of the recording data so as to accumulate the transactions of similar type at one place.

a)

Summarizing

b)

Analyzing

c)

Recording

d)

Classifying

12.

Accounting involves communication.

a)

True

b)

False

13.

Accounting is the language of business.

a)

True

b)

False

14.

It is preparation and presentation of the classified date in a manner useful to the users. This function involves the preparation of financial statement such as Income Statement, Balance Sheet, and Statement of Changes in Financial Position, Statement of Cash Flow, and Statement of Value Added.

a)

Analyzing

b)

Classifying

c)

Recording

d)

Summarizing

15.

Which of the following is not a part of the functions of the accounting system?

a)

Reporting the results of operations during a reporting period

b)

Preparing financial statements that are favorable to the data-users

c)

Analyzing and recording the business transactions of the enterprise

d)

Classifying and summarizing the effects of the transactions on the accounting elements