Order aspects of accounting assessment

Order aspects of accounting assessment
Financial accounting is:
(a) Mainly concerned with forecasting the future
(b) Used only by the management of the business
(c) Used only by people outside the business
(d) Used by people both inside and outside the business
2 The key aspects of accounting are:
(a) Identifying, measuring and communicating economic information
(b) Processing, recording and publishing financial information
(c) Summarising, analysing and interpreting business information
(d) Conveying inside information about the company to the owners
3 Which one of the following is described as a ‘primary user’ by the Conceptual
Framework for Financial Reporting?
(a) Employees
(b) Regulators
Self-check questions
Additional resources
Now work through the various exercises and problems
that you can find within the My Accounting Lab that are
relevant to this chapter. Either use the QR code shown in
the margin (if you use an Android-based device), or visit
www.myaccountinglab.com for the log-in page.
Only accessible
on Androidbased devices
(c) Existing investors
(d) Customers
4 Which one of the following is an underlying accounting assumption?
(a) Relevance
(b) Going concern
(c) Comparability
(d) Timeliness
5 Non-current assets are assets which are:
(a) Likely to last at least a year and are valuable
(b) Not going to be depreciated
(c) Unlikely to last a year
(d) The unsold goods of the business
6 Current assets are assets which:
(a) Keep their value over at least a year
(b) Often change their value
(c) Are depreciated
(d) Always have very substantial value
7 Liabilities are usually divided between:
(a) Urgent and non-urgent
(b) Fixed and current
(c) Current and non-current
(d) Medium-term and long-term
8 A bank overdraft is usually classified as:
(a) A current asset
(b) A non-current liability
(c) A current liability
(d) Equity
9 The accounting equation can be shown as:
(a) Equity – Liabilities = Assets
(b) Equity Assets = Liabilities
(c) Assets Liabilities = Equity
(d) Assets – Liabilities = Equity
10 Which of the following will not result in a change in the owners’ equity?
(a) A non-current asset bought by the business for £10,000
(b) A profit made by the organisation
(c) A loss made by the organisation
(d) The owners withdrawing £50,000 from the organisation