R&R Mock test

Accounting refers to only recording and classifying  financial data

• a) True

• a) False

• a) Incomplete definition.

• a) None of the above.

2. Bookkeeping refers to the process of recording, classifying and summarising financial transactions.

• True

• False

• Incomplete information

• None of the above

The results of accounting are used by internal users only

• True

• False

• Used by accountants

• None of the above

Read the statement and answer accordingly
Statement A: Finance is the process of raising funds or capital for any kind

of expenditure

Statement B: Financing is the process of channelling various funds in the form of

credit, loans, or invested capital to those economic entities

that most need them or can put them to the most productive

Use.

• Both statements are False

• Statement A is incorrect

• Statement B is correct

• Both statements are correct

The Accounting information system consists of how many stages?

• 3

• 5

• 4

• 10

 Which of the entity/entities uses the accounting information?

• Customers

• Managers

• Suppliers

• All of the above

 Read the following statements and answer accordingly

Statement A: External users include Government and Managers.

Statement B: Internal users include Budget Officers and Sales Staff

• a) Both statement are correct

• a) Only Statement A is correct

• a) Only statement B is correct

• a) Both statements are incorrect.

Which is not the type of Accounting?

• a) Financial accounting

• a) Environmental Accounting

• a) Management accounting

• a) Cost accounting

Read the following statements and answer accordingly:

Statement A: Capital is the total resources provided by the owner in the business.

Statement B: Assets represent anything owed by the business and Liabilities represent anything owned by the business

• a) Statement A is correct

• a) Statement B is correct

• a) Statements are incorrect

• a) Both are correct.

What is the disadvantage of Limited Liability?

• You are provided with limited liability, so you are only liable for what you have invested into the company

• Paying corporation tax can be more tax efficient that paying income tax in the higher tax bracket

• Registering your business on Companies House appears more legitimate to your customers and stakeholders

• Fees involved to register business