ACT Introduction

Which of these is not a feature of the company?

• Transferability of ownership
• Unlimited personal liability for shareholders.
• Limited liability of shareholders
• Unlimited life

Which of the following is not a source of document supporting the economic activities of the business?

• Sales receipts.
• Cheques
• Ledgers
• Purchase orders

Which of these combination best describes the major services performed by public accountants?

• Auditing, taxation, management consulting
• Cost accounting, production scheduling, recruiting.
• Bookkeeping, mergers, budgets.
• Employee training, auditing, bookkeeping.

Which of the following is best describe of the establishment of a Company?

• is wind up when one of its original shareholders dies.
• is owned by its shareholders.
• requires shareholders to be liable for the debts of the business.
• is not a separate legal entity in most circumstances

JJ’s job is to prepare financial analysis that will help her company improve results. For example, she tracks trends in departmental compliance with their budgets. Which of the following best describes her role?

• Investment analyst
• Managerial Accountant
• Financial accountant
• Financial Reporting specialist

Which of the following is external user for financial information of Nestle Bhd?

• Research & Development Department of Nestle
• Shareholders of Nestle
• Chief Executive Officer of Nestle
• Human Resource Department at Nestle

Which of the following statements about the users of accounting information is incorrect?

• Management is an internal users

• Regulatories authorities are internal users

• Tax authorities are external users

• Present creditors are external users

Which of the following is the process of bookkeeping serving its distintive role of accounting process?

• Recording
• Identification
• Analysis
• Communicating

Which of the following should not be part of accounting process??

• analyzing and interpreting financial reports.

• recording unquantifiable economic events

• identifying economic transactions that are relevant to the business.

• communicating financial information to users by preparing financial reports.

Identify which of the following are the correct sequence for an accounting process?

• communication, recording, measuring, identification.

• identification, communication, recording, measuring.

• identification, measuring, recording, communication

• measuring, recording, communication, identification.