WorksheetsIntroduction to Accounting Quiz
Total questions: 41
Worksheet time: 21mins
Which of the following best describes accounting?
Recording only cash transactions
Recording, classifying, and summarizing financial information
Preparation of tax documents
Recording only personal information
The main purpose of financial accounting is to:
Keep track of employee performance
Provide financial information to internal users
Provide financial information to external users
Help in inventory control
Which of the following is NOT a characteristic of financial accounting?
Historical in nature
Used by management only
Governed by accounting standards
Quantitative in nature
The person who uses accounting information to make investment decisions is called a:
Supplier
Customer
Investor
Manager
Financial statements are usually prepared:
Monthly
Weekly
Quarterly and annually
Daily
Which of the following is a basic accounting assumption?
Conservatism
Going concern
Cost
Matching
The principle that states revenues should be recorded when earned is the:
Matching principle
Revenue recognition principle
Historical cost principle
Consistency principle
The accounting principle that assumes a business will continue to operate indefinitely is:
Accrual basis
Going concern
Conservatism
Cost
The cost principle requires assets to be recorded at:
Market value
Replacement value
Original cost
Appraised value
The basic accounting equation is:
Assets = Liabilities + Income
Assets = Liabilities – Owner's Equity
Assets = Liabilities + Owner’s Equity
Assets = Expenses – Liabilities
Purchasing office supplies for cash affects the accounting equation by:
Increasing assets and liabilities
Decreasing assets and equity
Increasing and decreasing assets
Increasing liabilities and decreasing equity
Which of the following transactions increases both assets and liabilities?
Purchase of inventory on credit
Owner contributes capital in cash
Paying rent in advance
Depreciation of equipment
Which transaction will affect only the asset side of the equation?
Owner withdraws cash
Purchased equipment by cash
Received loan from bank
Bought goods on credit
The financial statement that shows a company’s financial position at a specific point in time is the:
Income Statement
Cash Flow Statement
Balance Sheet
Trial Balance
Which of the following shows a company’s profitability over a period of time?
Statement of Financial Position
Statement of Cash Flows
Income Statement
Statement of Owner’s Equity
Which of the following is a current asset?
Building
Machinery
Cash
Land
Owner’s equity will increase when:
Expenses increase
Revenue increases
Withdrawals increase
Liabilities increase
Which of the following is a liability?
Inventory
Equipment
Bank loan
Prepaid insurance
Which user is considered an internal user of accounting information?
Government
Bank
Manager
Investor
The branch of accounting concerned with providing information to managers is called:
Financial accounting
Management accounting
Cost accounting
Government accounting
Who would be most interested in a company’s ability to repay loans?
Customers
Suppliers
Creditors
Employees
Accounting information that is prepared for external users must follow:
GAAP or MFRS
Internal policies
Daily reports
Management expectations
Which of the following is NOT an external user of financial statements?
Investors
Creditors
Management
Government
Which of the following is a professional accounting body in Malaysia?
ACCA
CPA Australia
MIA
ICAEW
The statutory body that regulates the accounting profession in Malaysia is:
Malaysian Institute of Accountants (MIA)
Malaysian Institute of Certified Accountants (MICA)
Malaysian Accounting Standards Board (MASB)
Institute of Chartered Accountants in England and Wales (ICAEW)
To legally use the title 'Accountant' in Malaysia, one must be a member of:
MIA
ACCA
CPA Australia
MICPA
Which of the following bodies develops accounting standards in Malaysia?
MIA
MASB
MICPA
LHDN
MICPA stands for:
Malaysian International Chartered Professional Accountants
Malaysian Institute of Certified Public Accountants
Malaysian Independent Council for Public Accountants
Malaysian Institute of Corporate Professional Accountants
Which body must an accountant register with to practise legally in Malaysia?
SSM
MIA
MOF
ACCA
One of the functions of MIA is to:
Approve tax returns
Issue accounting standards
Regulate and develop the accounting profession
Register audit firms only
Which body governs the issuance of approved accounting standards in Malaysia?
LHDN
SSM
MASB
MIA
Which of the following is a fundamental principle of professional ethics in accounting?
Honesty
Independence
Integrity
Profit maximisation
Integrity in accounting means:
Following client instructions blindly
Being honest and straightforward in all professional work
Reducing company tax
Always agreeing with your supervisor
Confidentiality in accounting refers to:
Refusing to share your notes
Protecting personal data of friends
Not disclosing client information without proper authority
Hiding illegal transactions
Which ethical principle requires an accountant to act without bias?
Confidentiality
Objectivity
Professional Behaviour
Integrity
A conflict of interest in accounting may occur when:
You follow accounting standards
You work with family or have personal gain from a client
You submit reports on time
You use company equipment
Which of the following is considered unethical behaviour?
Following accounting standards
Disclosing financial information with consent
Manipulating financial statements
Reporting fraud
Professional competence means:
Knowing how to use a calculator
Maintaining and improving your accounting skills
Being good at office politics
Doing routine tasks only
Which of the following best reflects professional behaviour?
Ignoring errors to save time
Reporting suspected fraud
Lying to protect the company
Submitting work without verification
The ethical principle of 'Professional Behaviour' means:
Promoting your services aggressively
Avoiding any action that discredits the profession
Offering gifts to clients
Competing by lowering your prices
What should an accountant do if pressured to commit unethical acts?
Ignore and continue
Follow instructions
Report the issue or withdraw from the task
Remain silent to avoid conflict
