W-2 ACCUONTING QUIZ

Why is accounting important?

• Business control

• Assist in finance

• Plan future activities

• Business performance review

Which type of accounting shows a business's performance to outsiders?

• Financial Accounting

• Management Accounting

• Both Financial and Management Accounting

• None of the above

What is the Entity Rule in accounting?

• The business is separate from its owner(s)

• Specific time periods for financial reporting

• The business will continue to operate

• Manage all money in and out of the business

Which accounting rule states that only transactions expressible in monetary terms should be recorded?

• Money Measurement

• Historical Cost

• Realisation

• Matching

Who uses accounting for decision-making?

• Owners/Shareholders

• Managers

• Investors

• Lenders

What is a purpose of accounting?

• To control business activities

• To assist in raising finance

• To plan future activities

• All of the above

Which type of accounting helps in company's decision making?

• Financial Accounting

• Management Accounting

• Both Financial and Management Accounting

• None of the above

What does the Period of Account refer to in accounting?

• Separating business from its owner(s)

• Defining time periods for financial reports

• Assuming business continuity

• Managing business finances

Which accounting rule records assets and liabilities at their original purchase price?

• Money Measurement

• Historical Cost

• Realisation

• Matching

Who is interested in a company's profitability and growth?

• Owners/Shareholders

• Managers

• Investors

• Lenders