4 Business - POA - Assignment 3

Accounting is

• Recording anything that appears in a business
• Recording the transactions of a business
• Recording, analyzing and interpreting the business transactions
• Recording, summarising, analysing and interpreting the business transactions

The recording of the transactions in the accounting books of a business is called

• Accounting
• Book-keeping
• liabilities
• Resources

The purposes of preparing accounting documents and financial statements are to I show information of the resources of a business II show who has clam on the business' resources III help users of financial information make decisions about the business

• I and II
• I and III
• II and III
• I, II, III

Which lists represents both internal and external users of financial statements?

• Bans, government and investors
• Creditors, government and managers
• Creditors, banks and investors
• Suppliers, invesotrs and banks

Which accounting user is correctly matched with its need?

• Bankers - to determine taxes to here the business
• Government- to find out if the business can repay a loan
• Supplier - to find out if he should invest capital in the business
• Owner - to determine the profit of the business over the financial period

Which of the following statement is NOT a need of a user of accounting information

• To determine whether to invest further
• To determine the profitability of the business
• to add to the country's Gross Domestic Product (GDP)
• to determine the profitably of the business

Why is accounting necessary in an organisation?

• It is required by law
• to help the government
• To report on financial data
• to have enough employees

In which of the following are a sole trader's profit and losses recorded?

• Income statement
• Income and Expenditures Account
• Balance Sheet
• Cash Flow Statement

The following are the Assets and LIABILITIES of Kaleb's Cash in Hand $500 Accounts Payable $2500 Bank overdraft $3000 Accounts receivable $5000 Premises $70 000 Cash at Bank $500. Kaleb's capital amount is

• $75000

• $80500

• $81000

• $86000

It is the end of Tiffany's financial year. She had total assets of $5000 and capital of $3600. How much were her liabilities?

• $1400

• $3600

• $5000

• $8600