Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Which financial statement is used to show what the
firm owns?
a. | Income statement | b. | Balance sheet | c. | Statement of
retained earnings | d. | Cash flow
statement |
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2.
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Financially, shareholders are rewarded
by:
a. | Interest. | b. | Profits. | c. | Dividends. | d. | None of the
above |
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3.
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The type of accounting which reports on the
performance of the firm to essential external users is called:
a. | External accounting. | c. | Financial accounting. | b. | Managerial
accounting. | d. | Internal accounting. |
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4.
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When does an accountant record a
transaction?
a. | If it is materialized by a concrete
document | b. | If it has a tax implication | c. | On managers’ demand | d. | None of the above
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5.
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Which of the following describes a record of the
transactions?
a. | General ledger | b. | Income statement | c. | Balance
sheet | d. | Journal
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6.
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Which of the following groups use financial
accounting?
a. | Management, employees, shareholders and
lenders | b. | Suppliers, customers and
competitors | c. | Tax authorities,
government and general public | d. | All of the
above |
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7.
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What are the accounting standards issued by the
IASB called?
a. | Internationally Accepted Accounting
Standards | b. | International Financial Accounting
Standards | c. | International Accounting
Principles | d. | International
Financial Reporting Standards |
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8.
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From which year to all listed EU companies have to
prepare their consolidated financial statements in accordance with International Accounting
Standards?
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9.
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The four principal qualitative characteristics of
useful financial statements are:
a. | Understandability, relevance, reliability,
comparability. | b. | Timeliness,
relevance, reliability, comparability. | c. | Understandability,
relevance, accuracy, comparability. | d. | Understandability,
relevance, reliability, simplicity.
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10.
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Information is material if:
a. | Its omission or misstatement could influence the
economic decisions of users taken on the basis of the financial
statements. | b. | It corresponds to
financial variables. | c. | It is recorded on
the basis of concrete documents. | d. | None of the
previous answers. |
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