Accounting - LU 1

Accounting can be referred as

• Language of the business

• Objective of the business

• Profit of the business

• Language of the accountant

Which branch of accounting deals with information related to cost?

• Cost Accounting

• Management accounting

• Financial accounting

• Social accounting

Which of the following is NOT objective of accounting?

• Auditing of records

• Keeping a systematic record

• Ascertaining the results of the operation

• Satisfying the requirements of law

Financial performance of a business is shown by

• Profit / Loss account

• Balance sheet

• Trial balance

• Ledger

Financial position of a business is shown by

• Balance sheet

• Profit / Loss account

• Trial balance

• Ledger

Who among the following is an internal user of financial information?

• Manager of a business

• Public

• Creditor

• Government

1.     A ______________ is most likely to use an entity’s financial report to determine whether the entity is eligible for a loan.

• Bank

• Stock exchange

• Income tax department

• Trade association

______________ is an internal user of accounting information.

• Owner

• Creditor

• Debtor

• Investor

______________ is an external user of accounting information.

• Creditor

• Owner

• Management

• Employee

______________ is an external user of accounting information.

• Equity shareholder

• Owner

• Management

• Investor