Introduction to accounting Quiz-3

Introduction to accounting Quiz-3

Quiz

 

1. Which system of accounting records all financial transactions in the books of accounts?
   1.   Single entry system
   2.   Double entry system
   3.   Cash basis accounting
   4.   Accrual basis accounting
2. Employees are considered external users of accounting because:
   1.   They do not have a direct financial interest in the company.
   2.   They do not work for the company.
   3.   They do not have access to accounting information.
   4.   All of the above.
3. The opposing party can challenge the admissibility of accounting records in court by arguing that:
   1.   They are not relevant to the case.
   2.   They are not reliable.
   3.   They are not original.
   4.   All of the above.
4. Reliability means that accounting information:
   1.   Is useful for decision-making.
   2.   Is free from material error and bias.
   3.   Is based on evidence.
   4.   Is not based on personal opinion.
5. The system of accounting that often requires the use of a general journal and general ledger is:
   1.   Accrual Basis Accounting
   2.   Cash Basis Accounting
   3.   Single-Entry Accounting
   4.   Double-Entry Accounting
6. The single entry system is suitable for:
   1.   Small businesses.
   2.   Large businesses.
   3.   Non-profit organizations.
   4.   All of the above.
7. The single entry system is a:
   1.   Complete system of accounting.
   2.   Simple system of accounting.
   3.   Complex system of accounting.
   4.   None of the above.
8. The double entry system helps to:
   1.   Identify the source and use of funds.
   2.   Determine the financial position of a business.
   3.   Prepare financial statements.
   4.   All of the above.
9. The single entry system is not suitable for:
   1.   Tracking the financial performance of a business.
   2.   Generating financial statements.
   3.   Complying with accounting regulations.
   4.   All of the above.
10. Accounting helps to comply with laws and regulations by:
    1.   Recording financial transactions accurately.
    2.   Preparing financial statements in accordance with generally accepted accounting principles (GAAP).
    3.   Filing tax returns on time and accurately.
    4.   All of the above.
11. Which of the following is the main difference between bookkeeping and accounting?
    1.   Bookkeeping is the process of recording financial transactions, while accounting is the process of interpreting, analyzing, and summarizing financial data.
    2.   Bookkeeping is the process of preparing financial statements, while accounting is the process of recording financial transactions.
    3.   Bookkeeping is the process of analyzing financial data, while accounting is the process of preparing financial statements.
    4.   Bookkeeping is the process of summarizing financial data, while accounting is the process of analyzing financial data.
12. Which of the following is a bookkeeping book that records all financial transactions in chronological order.
    1.   Journal
    2.   Ledger
    3.   Trial balance
    4.   None of the above
13. Which of the following is an accounting statement?
    1.   Journal
    2.   Ledger
    3.   Trial balance
    4.   Balance sheet
14. The function of accounting that involves providing financial information to users is called:
    1.   Financial reporting
    2.   Risk management
    3.   Internal control
    4.   Auditing
15. Objectivity means that accounting information:
    1.   Is useful for decision-making.
    2.   Is free from material error and bias.
    3.   Is based on evidence.
    4.   Is not based on personal opinion.
16. Relevance means that accounting information:
    1.   Is useful for decision-making.
    2.   Is free from material error and bias.
    3.   Is based on evidence.
    4.   Is not based on personal opinion.
17. The double entry system is not suitable for:
    1.   Small businesses.
    2.   Large businesses.
    3.   Non-profit organizations.
    4.   Government entities.
18. Which of the following is a limitation of accounting?
    1.   It is based on historical information.
    2.   It is subjective.
    3.   It is not always accurate.
    4.   All of the above.
19. Which of the following is not an internal user of accounting?
    1.   Managers
    2.   Employees
    3.   Owners
    4.   Lenders
20. Which of the following is an advantage of the double entry system?
    1.   It is more accurate than the single entry system.
    2.   It provides a complete record of all financial transactions.
    3.   It helps to prevent errors and fraud.
    4.   All of the above.