WorksheetsR&R Mock test
Total questions: 18
Worksheet time: 18mins
Accounting refers to only recording and classifying financial data
a) True
a) False
a) Incomplete definition.
a) None of the above.
2. Bookkeeping refers to the process of recording, classifying and summarising financial transactions.
True
False
Incomplete information
None of the above
The results of accounting are used by internal users only
True
False
Used by accountants
None of the above
Read the statement and answer accordingly
Statement A: Finance is the process of raising funds or capital for any kind
of expenditure
Statement B: Financing is the process of channelling various funds in the form of
credit, loans, or invested capital to those economic entities
that most need them or can put them to the most productive
Use.
Both statements are False
Statement A is incorrect
Statement B is correct
Both statements are correct
The Accounting information system consists of how many stages?
3
5
4
10
Which of the entity/entities uses the accounting information?
Customers
Managers
Suppliers
All of the above
Read the following statements and answer accordingly
Statement A: External users include Government and Managers.
Statement B: Internal users include Budget Officers and Sales Staff
a) Both statement are correct
a) Only Statement A is correct
a) Only statement B is correct
a) Both statements are incorrect.
Which is not the type of Accounting?
a) Financial accounting
a) Environmental Accounting
a) Management accounting
a) Cost accounting
Read the following statements and answer accordingly:
Statement A: Capital is the total resources provided by the owner in the business.
Statement B: Assets represent anything owed by the business and Liabilities represent anything owned by the business
a) Statement A is correct
a) Statement B is correct
a) Statements are incorrect
a) Both are correct.
What is the disadvantage of Limited Liability?
You are provided with limited liability, so you are only liable for what you have invested into the company
Paying corporation tax can be more tax efficient that paying income tax in the higher tax bracket
Registering your business on Companies House appears more legitimate to your customers and stakeholders
Fees involved to register business
What does the term "stakeholder" refer to in a business context?
The financial investment made by shareholders
Any person or entity with a vested interest in the business
The profit generated by the company
The ownership percentage of a business
In the context of business stakeholders, which category includes entities that influence norms and informal rules of the industry?
Enabling stakeholders
Normative stakeholders
Functional stakeholders
Diffused stakeholders
Is accounting considered an art or a science?
Art
Science
Both Art and Science
Neither Art nor Science
What does a balance sheet provide for a company?
Overview of cash flow
Summary of financial position at a specific date
Analysis of market trends
Projection of future earnings
What does the Statement of Cash Flow disclose about a company?
Net profit for a specific period
Amount of cash collected and paid out in various activities
Shareholder equity at a specific date
Long-term liabilities of the company
What does the Income Statement reveal about a company?
The company's financial position at a specific date
The amount of cash collected and paid out in various activities
The results of the company's operations over a period of time
The long-term investments made by the company
What is the primary purpose of the Statement of Retained Earnings?
Summarizing the financial position of a company at a specific date
Reporting the results of a company's operations over a period of time
Identifying changes in retained earnings from one accounting period to the next
Presenting the amount of cash collected and paid out in various activities
Which concept involves a company considering not only profit but also other values such as social and environmental impacts in its business activities?
Stakeholder Approach
Triple Bottom Line
Shareholder Approach
Corporate Social Responsibility
