Introduction to Accounting

Accounting is an information system that provides accounting information for _______________ to make informed decisions regarding the management of resources and performance of businesses.

• owners

• stakeholders

• shareholders

• managers

Accountants prepare and provide accounting information for ___________________.

• reporting

• owners

• shareholders

• decision-making

What are the two types of business?

State the two ethics an accountant should uphold.

• integrity

• efficient

• objective

• meticulous

An accountant with integrity is ________________ and honest in all professional relationships.

• unbiased

• upright

• straightforward

State the form of business ownership where an owner contributes his personal assets into the business?

• Private Limited Company

• Limited Liability Partnership

• Sole Proprietorship

An accountant who is objective will not let bias, __________________________ or the undue influence of others override his or her professional judgement.

Why are owners and shareholders interested in financial information?

• To know if they can invest in the business.

• To know if they can sell the business.

• To know if the business is taken care by the government.

• To know how many employees the business employed.

The government is interested in financial information of a business to decide _________________.

• compare the performance with other businesses

• the amount of tax to collect

• whether it's a conducive workplace for employees

• whether the business will exist forever

Suppliers are interested in the financial information of a business to decide whether _____________________.

• to buy the shares of the business.

• to buy from the business on credit

• to sell the business away on credit

• to sell to the business on credit