- A list of assets, liabilities and owner’s equity of a business enterprise as of a specific date is:
- a)Income Statement
- b)Cash Flow Statement
- c)Balance-Sheet
- d)Profit & Loss Account
Answer: C
- The balance-sheet is related to the income statement in the same way that –
- a)A point in time is related to period of time
- b)A period of time is related to a point in time
- c)A point in time is related to another point in time
- d)A period of time is related to another period of time
Answer: B
- The properties own by business enterprises are called:
- a)Assets
- b)Liabilities
- c)Capital
- d)Owner’s Equity
Answer: A
- Which of the following is an important reason for studying accounting?
- a)The information provided by accounting is useful in making many economic decisions.
- b)Accounting plays an important role in society
- c)The study of accounting could lead to challenging career
- d)All of the above.
Answer: A
- Statement of changes in financial position shows:
- a)Sources and uses of funds
- b)Assets and Liabilities
- c)Income and Expenses
- d)Losses and Gains
Answer: A
- Which of the following statements is false?
- a)Accounting is the language of business.
- b)Accounting is as old as money itself.
- c)Accounting is a service function.
- d)Accounting involves only the recording of business transactions.
Answer: D
- Which of the following statements are false?
- a)Accounting may be described as an information system which has its inputs, processing methods and outputs.
- b)Accounting records only those transactions and events which are of financial nature.
- c)Accounting is both art and science.
- d)Accounting means recording transactions and events, not their interpretation.
Answer:
- Which of the following is not a characteristic of accounting information?
- a)Relevance
- b)Reliability
- c)Comparability
- d)Matching
Answer: D
- Which of the following is not a branch of accounting?
- a)Financial accounting
- b)Cost accounting
- c)Management Accounting
- d)Responsibility accounting
Answer: D
- The last step in accounting process is:
- a)Identifying the business transactions and events
- b)Recording of business transactions
- c)Classifying the business transactions
- d)Communication of financial statements
Answer: D
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