Overview of Accounting

The primary nature of the information provided by accounting is:

• Financial

• Historical

• Scientific

• Artistic

The purpose of accounting is to permit informed ______ and decisions by users of the information.

• guesses

• judgments

• assumptions

• predictions

What is the process of analyzing events and transactions to determine whether or not they will be recognized?

• Identifying

• Recording

• Reporting

• Summarizing

Recognition refers to the process of including the effects of an accountable event in the ________ through the Journal Entry.

• Statement of Financial Position

• Statement of Comprehensive Income

• Both A and B

• None of the above

Fill in the blank: Measuring involves assigning numbers, normally in ______ terms, to the economic transactions and events.

• monetary

• alphabetical

• symbolic

• graphical

Which of the following is not a measurement base mentioned in the document?

• Realizable value

• Current cost

• Imaginary value

• Fair value

What is the term used when measurement is affected by estimates?

• Facts

• Opinions

• Data

• Evidence

Fill in the blank: Estimated liabilities, such as ______, are examples of valuation by opinion.

• Assets

• Provisions

• Cash

• Revenue

Economic activities such as Production, Exchange, Consumption, Savings, and ______ affect the economy.

• Sleeping

• Investment

• Singing

• Running

Which concept involves weighing the cost of providing information against the benefit derived from it?

• Cost-benefit

• Materiality concept

• Prudence

• Accrual basis of Accounting