Introduction to Accounting

The financial information provided by an accounting system is needed by:

• Owners

• Creditors

• Management

• All of the above

Double entry system of accounting means:

• Entry in two sets of books

• Entry on two dates

• Entry for two aspects of the transaction

• Entry for one aspect of transaction

The complete process of accounting is called:

• Journalising

• Posting

• Accounting cycle

• Business Cycle

The science and art of correctly recording business dealings in a set of books is called:

• Accounting

• Record keeping

• Bookkeeping

• Double Entry Book keeping

The statement showing the financial position of a business at a particular time is known as the:

• Financial Statement

• Balance sheet

• Income Statement

• Bank statement

Recording business data in a prescribed manner is called:

• Accounting

• Journalising

• Book keeping

• Posting

The art of measuring, communicating, and interpreting financial activities is called:

• Management accounting

• Financial accounting

• Cost accounting

• All of the above

Bad debts arise from:

• • Personal sales

• Cash sales

• Sales on account or credit sales

• All of the above

Which of the following is an aspect of relevance, according to the Conceptual Framework for Financial Reporting?

• • Neutrality

• • Free from error

• • Completeness

• Materiality

The process of recording, classifying, and summarising all business transactions in order to know the financial result is called ______.

• Bookkeeping

• Accounting

• Journalising

• None of these