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Users of Accounting Information

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

Joyce asked her friend Jannah to borrow a money for the science project that they will pass in due time. What kind of user of accounting information is Jannah? 

a)

Internal Users of Accounting Information

b)

External Users of Accounting Information

2.

Ms. Murcia is a secretary of the PRO Co., and she complain about the discrepancy about her salary in the March 2019 and it was confirmed by the Company''s audit that there's an error occurred in the accounting records of salaries. As the secretary of the PRO Co., what kind of user is Ms. Murcia?

a)

External User of Accounting Information

b)

Internal User of Accounting Information

3.

Which of the following is not a business transaction?

a)

Hiring a new employee

b)

Incurring on a business loan

c)

Receiving fees for service

d)

Purchasing office supplies

4.

The PRO Co. has been charged with 1 million as their annual tax for the year 2019 and file it in Bureau of Internal Revenue. What is the classification of BIR as a user of accounting information of The PRO Co.?

a)

Internal Users of Accounting Information

b)

External Users of Accounting Information

5.

Mang David is a fisherman who give the large amount of fish products in the Bagong Nayon Market he always check if the retail fish stores are able to pay in due date. 

a)

Internal Users of Accounting Information

b)

External Users of Accounting Information

6.

Records are  the  books  of  accounts  that  must  be  maintained  by  the accounting  department.  Just  as  one  gathers  lecture  notes  and  places them  in  a  notebook,  accounting  data  are  gathered  and  recorded  in  a book  called  the ______.

a)

Ledger

b)

Journal

c)

Output Devices

d)

Online Process

7.

These are group of persons who are outside the organization for whom accounting function is performed.

a)

Creditors

b)

Internal stakeholdersEmployers

c)

External Users

d)

Internal Users

8.

Which financial statement is most useful in assessing the financial flexibility of a business enterprise?

a)

Statement of Cash Flows

b)

Statement of Changes in Owner's Equity

c)

Income Statement

d)

Balance Sheet

9.

It’s a tool used in evaluation management's performance. It also helps in assessing the inflow and outflow of cash. The income  statement  also  referred  to  as  the  statement  of  performance  or statement  of  earnings. The elements of income statements are revenues, and expenses.

a)

Income Statement

b)

Cash Flow Statement

c)

Owner's Equity

d)

Financial Statement

10.

Which of the following items may appear in a balance sheet?

a)

Capital, drawing and expenses

b)

Capital, drawing and net income

c)

Capital, drawing and income

d)

Drawing, income and expenses

11.

Creditors information needs involve making all of the following decisions, except:

a)

Whether or not ask for advance payment from a customer

b)

Whether or not to sell goods and services on account basis

c)

Whether or not renew an existing customer's credit line

d)

Whether or not to invest in a credit instrument

12.

Which of the following is not a component of the complete set of financial statements?

a)

Supplementary disclosure and explanatory notes

b)

Income statement

c)

Statement of changes in owner's equity

d)

Bank reconciliation statement

13.

Which of the following statements is false?

a)

Owner's equity can be bigger than the total liabilities.

b)

Owner's equity cannot be bigger than the total assets.

c)

Total liabilities can be bigger than the total assets.

d)

Owner's equity can be bigger than the total assets.

14.

Which of the following is an internal data-user?

a)

Bureau of Internal Revenue

b)

Bank representative

c)

Company treasurer

d)

President of the labor union

15.

It is an activity or event taking place in business which is expressed in terms of money. Examples are: buying or selling goods, receiving or paying cash, rendering or receiving service and borrowing or lending money

a)

Data Collection

b)

Business Transactions

c)

Cooperative Credit

d)

Data Processing