Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
|
|
|
1.
|
The
purpose of accounting is to: a. | Record financial transactions | c. | Assist in the making of financial
decisions | b. | Provide financial information to
users | d. | All of the
above | | | | |
|
|
|
2.
|
The
main role of an accountant is: a. | To take financial decisions | c. | To maximise profits | b. | To provide
financial information | d. | To ensure that
fraud does not occur | | | | |
|
|
|
3.
|
In
general, the shareholders of a company: a. | Enjoy unlimited liability | b. | Can lose
everything they own if the company gets into financial trouble | c. | Enjoy limited
liability | d. | Are required to put money into the company if it cannot pay its
debts | | |
|
|
|
4.
|
In
general, a business carries out financial transactions with: a. | A range of
stakeholders including customers, suppliers, employees and the Government | b. | Customers and
suppliers only | c. | Customers, suppliers and employees
only | d. | Customers,
suppliers and competitors only | | |
|
|
|
5.
|
Accounting can be criticised because: a. | It fails to
report non-financial information | b. | It fails to report financial
information | c. | It concentrates too much on items which cannot be measured in
monetary terms | d. | All of the above | | |
|