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WorksheetsINTRODUCTION TO ACCOUNTING
Total questions: 15
Worksheet time: 8mins
………………… is the process of identifying, recording and classifying, summarizing, analyzing and interpreting business transaction.
Bookkeeping
Accounting
Transaction
Financing
Bookkeeping differs from accounting. Which part of the accounting process is primarily involved in bookkeeping?
Measurement
Analyzing
Communication
Recording
What is the function of financial report to management in any organization?
To make decision for company
To supervise their workers
To enable business ongoing basis
To acquire additional capital
What is the function of financial Accounting?
To give an information about financial position of business
To determine the amount of profit and loss
To ensure salary increments and other benefit
To know the ability of a company or business to repay debts
Which of the following is not the role of an accountant?
manage and run the business
comply with the accounting standard
prepare financial reports
communicate the financial information to stakeholders
Which of the following are not the external users of accounting information?
Management
Banks
Creditors
Supplier
Which of the following is not the internal user of financial information?
Management of Finance
Business Owner
Management
Potential investor
Which of the following is an example of an expense?
Machinery
Bank
Petrol
Which of the following is an example of Income
Sales
Mortgage
Equipment
Concept: The revenue from business activities and the expenses associated with earning that revenue are recorded in the same accounting period
adequate disclosure
unit of measurement
historical cost
matching expenses with revenue
Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately
going concern
materiality
accounting period cycle
matching revenue with expenses
Concept: a business's records should never be mixed with an owner's personal records and reports
adequate disclosure
business entity
objective evidence
going concern
Business transactions are reported in numbers that have common values. Meaning all reporting should be done in terms of money
Monetary measurement
Historical cost
Materiality
Going concern
