Introduction to accounting Quiz-2

Introduction to accounting Quiz-2

Quiz

 

1. Which of the following is NOT a component of accounting?
   1.   Recording
   2.   Analyzing
   3.   Summarizing
   4.   Inventing
2. What is the fundamental distinction between accounting and accountancy?
   1.   They are two terms for the same concept.
   2.   Accounting refers to the process, while accountancy refers to the profession.
   3.   Accountancy refers to the process, while accounting refers to the profession.
   4.   They are interchangeable terms in different regions.
3. Which branch of accounting focuses on recording, classifying, and summarizing financial transactions for external reporting purposes?
   1.   Managerial accounting
   2.   Tax accounting
   3.   Financial accounting
   4.   Cost accounting
4. What advantage of accounting ensures that resources are allocated efficiently and wastage is minimized?
   1.   Decision-making
   2.   Control and monitoring
   3.   Financial reporting
   4.   Tax planning
5. Which of the following best describes the purpose of accounting?
   1.   To create artistic works that inspire and entertain
   2.   To calculate complex mathematical equations
   3.   To provide a systematic way to record, analyze, and communicate financial information
   4.   To study the behavior of animals in their natural habitats
6. How would you define accounting in comparison to accountancy?
   1.   Accounting is the recording and analysis of financial transactions, while accountancy is the preparation of financial statements.
   2.   Accounting is a branch of mathematics, while accountancy is a branch of economics.
   3.   Accounting is a profession focused on tax compliance, while accountancy involves financial reporting.
   4.   Accounting is the process of interpreting financial data, while accountancy involves managing physical assets.
7. Which system of accounting records financial transactions based on their actual occurrence, regardless of when the related cash flows occur?
   1.   Cash Basis Accounting
   2.   Accrual Basis Accounting
   3.   Double-Entry Accounting
   4.   Single-Entry Accounting
8. The process of interpreting and analyzing financial statements falls under which branch of accounting?
   1.   Financial accounting
   2.   Managerial accounting
   3.   Tax accounting
   4.   Cost accounting
9. What differentiates accountancy from accounting in terms of scope?
   1.   Accountancy covers external reporting, while accounting focuses on internal financial management.
   2.   Accountancy is more relevant to small businesses, while accounting is relevant to large corporations.
   3.   Accountancy is a broader term that includes financial management, while accounting is limited to record-keeping.
   4.   Accountancy is applicable to government entities, while accounting is only applicable to private businesses.
10. What is the primary objective of financial accounting?
    1.   To help managers make informed decisions
    2.   To provide information for internal control purposes
    3.   To record and report financial transactions accurately
    4.   To promote social responsibility within organizations
11. Which characteristic of accounting information allows for comparisons between different periods and entities?
    1.   Reliability
    2.   Relevance
    3.   Comparability
    4.   Complexity
12. Which characteristic of accounting information allows for the accurate representation of economic events and transactions?
    1.   Relevance
    2.   Reliability
    3.   Credibility
    4.   Inaccuracy
13. Which characteristic of accounting information suggests that it should be suitable for various users' needs and purposes?
    1.   Consistency
    2.   Flexibility
    3.   Specificity
    4.   Relevance
14. What objective of accounting aims to ensure that an organization complies with relevant laws and regulations?
    1.   Decision-making
    2.   Financial reporting
    3.   Tax planning
    4.   Regulatory compliance
15. The role of accounting that involves assessing an organization's financial health and stability is known as:
    1.   Tax planning
    2.   Financial reporting
    3.   Employee management
    4.   Supply chain optimization
16. Which objective of accounting involves assessing an organization's financial performance and financial position?
    1.   Monitoring
    2.   Control
    3.   Reporting
    4.   Decision-making
17. Which of the following is a fundamental characteristic of accounting information?
    1.   Opinions and personal biases
    2.   Objectivity and neutrality
    3.   Creative storytelling
    4.   None of the above
18. Which attribute of accounting refers to the ability to measure and express financial transactions in a common unit of measurement?
    1.   Reliability
    2.   Comparability
    3.   Monetary unit
    4.   Consistency
19. What branch of accounting deals with providing financial information to internal users for planning and decision-making within an organization?
    1.   Tax accounting
    2.   Financial accounting
    3.   Cost accounting
    4.   Managerial accounting
20. Which statement accurately reflects the relationship between bookkeeping and accounting?
    1.   Bookkeeping is another term for accounting
    2.   Bookkeeping is a subset of accounting, involving the recording of financial transactions
    3.   Accounting is a subset of bookkeeping, involving the analysis of financial transactions
    4.   Bookkeeping and accounting are completely unrelated activities