introduction to acc and fin

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introduction to acc and fin
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2011-11-19 09:31:13
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introduction to acc and fin
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  1. Which one of the following describes the correct sequence of stages of an accounting information system?
    A. Information recording, Information identification, Information analysis, Information reporting.
    B. Information identification, Information recording,Information analysis, Information reporting.
    C. Information identification, Information recording,Information reporting,Information analysis.
    D.Information recording, Information identification, Information reporting, Information analysis.
    B. Information identification, Information recording,Information analysis, Information reporting.
    (this multiple choice question has been scrambled)
  2. One purpose
    of accounting information is to help certain users assess how
    effectively the managers are running the business and to make judgements
    about likely levels of risk and return in the future. Which one of the
    following user groups is most likely to use accounting information for
    this purpose?
    A.Employees
    B.Community representatives
    C.Government
    D.Owners
    D.Owners
  3. Which one of the following is not considered to be a key qualitative characteristic of accounting?
    A.Timeliness
    B.Materiality
    C.Understandability
    D.Comparability
    A.Timeliness
    (this multiple choice question has been scrambled)
  4. Consider the following statements: Management accounting reports are always specific-purpose reports and never general-purpose reports Management accounting reports are subject to regulations imposed by the accounting profession What is the validity of each statement?
    Statement
    1 2
    A. TRUE TRUE
    B. TRUE FALSE
    C.FALSE TRUE
    D.FALSE FALSE
    • Correct Answer:D
    • Both statements
    • are false. Management accounting reports can be both general-purpose and
    • specific-purpose reports. They are not subject to regulation by the
    • accounting profession. Therefore D is the correct answer.
  5. The generally accepted major financial objective of a business is assumed to be:
    A.Maximisation of sales revenue
    B.Maximisation of profit
    C.Maximisation of return on capital employed
    D.Enhancement/maximisation of the wealth of the owners
    D.Enhancement/maximisation of the wealth of the owners
    (this multiple choice question has been scrambled)
  6. One
    purpose of accounting information is to help certain users make
    decisions and plans for the business and to exercise control so that the
    plans come to fruition.Which one of the following user groups is most likely to use accounting information for this pupose?
    A.Community representatives
    B.Managers
    C.Employees
    D.Owners
    B.Managers
    (this multiple choice question has been scrambled)
  7. The study of business investment and financing decisions is known as:
    A.Management systems
    B.Management accounting
    C.Financial accounting
    D.Finance
    C.Financial accounting
    (this multiple choice question has been scrambled)
  8. Accounting exists to help people make better __________.
    A.profits

    B.citizens

    C.decisions

    D.businesses
    C.decisions
  9. __________ is concerned with the collection, analysis and communication of economic information.
    A.Management
    B.Business
    C.Accounting
    D.Finance
    C.Accounting
    (this multiple choice question has been scrambled)
  10. The two broad classes of accounting are management accounting and __________ A.accounting.
    B.business
    C.company
    D.financial
    E.commercial
    D.financial
  11. The process of ensuring that planned events actually occur is known as __________.
    A.control
    B.accounting
    C.management
    D.planning
    A.control
    (this multiple choice question has been scrambled)
  12. __________ is concerned with financing and investment activities of the business.
    A.Finance
    B.Budgeting
    C.Accounting
    D.Control
    A.Finance
    (this multiple choice question has been scrambled)
  13. Accounting can be seen as part of the total __________ system of the business.
    A.computer
    B.financial
    C.commercial
    D.information
    D.information
    (this multiple choice question has been scrambled)
  14. There are five key qualitative characteristics of accounting; these are relevance, reliability, comparability, __________ and materiality.
    A.timeliness
    B.accuracy
    C.understandability
    D.objectivity
    C.understandability
  15. Deciding whether to produce an item of accounting information is a question of balancing the __________ against the cost.
    A.revenue
    B.money
    C.profit
    D.benefit
    D.benefit
    (this multiple choice question has been scrambled)
  16. The generally accepted __________ of businesses is to maximise the wealth of the owners.
    A.description
    B.objective
    C.principle
    D.strength
    B.objective
    (this multiple choice question has been scrambled)
  17. Accounting seeks to meet the __________ of various users.
    A.needs
    B.regulations
    C.ambitions
    D.representatives
    A.needs

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