a. often only two weeks.
b. always one month.
*c. often up to three months.
d. nil.
Correct answer: c
Learning Objective 1.9 ~ Give examples of the limitations of accounting information
When making informed investment decisions, investors are:
a. only interested in the company’s financial situation.
b. mainly interested in the company’s share price.
c. only interested in how long the company has been operating profitably.
*d. interested in the company’s financial situation and other relevant business factors.
Correct answer: d
Learning Objective 1.9 ~ Give examples of the limitations of accounting information
Subjectivity does not apply to the valuation of:
*a. cash.
b. inventory.
d. net accounts receivable.
c. property, plant and equipment.
Correct answer: a
Learning Objective 1.9 ~ Give examples of the limitations of accounting information
Firms of accountants who work for many different clients are known as:
a. financial accountants.
b. private accountants.
c. company accountants.
*d. public accountants.
Correct answer: d
Learning Objective 1.10 ~ Provide examples of exciting opportunities for careers in accounting
Which of the following has not been a traditional area of employment for accountants?
*a. Forensic accounting.
b. Audit and assurance.
c. Financial accounting.
d. Tax accounting.
Correct answer: a
Learning Objective 1.10 ~ Provide examples of exciting opportunities for careers in accounting
The most senior accounting position in a corporation is generally referred to as the:
*a. chief financial officer.
b. general director.
c. accounting manager.
d. auditor.
Correct answer: a
Learning Objective 1.10 ~ Provide examples of exciting opportunities for careers in accounting
Which of the following is not likely to be a growth area for the accountants of the future?
a. Sustainability accounting.
b. Forensic accounting.
*c. Transaction processing.
d. E-Commerce.
Correct answer: c
Learning Objective 1.10 ~ Provide examples of exciting opportunities for careers in accounting
The type and nature of work performed by accountants that will be most valued in the future will be:
*a. functions that cannot be automated or outsourced.
b. transaction processing.
c. financial report preparation.
d. auditing.
Correct answer: a
Learning Objective 1.10 ~ Provide examples of exciting opportunities for careers in accounting
Fill the blanks
The work of recording financial transactions is normally carried out by a _______________ not an accountant.
a. bookkeeper
Learning Objective 1.1 Explain the process of accounting
Accounting is the process of identifying, communicating, and _______________ economic information for the purposes of decision-making.
a. measuring
Learning Objective 1.1 Explain the process of accounting
The accounting process within an organisation which includes costing, budgeting and planning is known as ____________________ accounting.
a. management
Learning Objective 1.3 Explain the differences between financial accounting and management accounting
A company’s financial statements include the Statement of _____________________ Income, the Statement of Financial Position and the Statement of Cash Flows.
a. Comprehensive
Learning Objective 1.3 Explain the differences between financial accounting and management accounting
A business plan can also be referred to as a __________________________ .
a. blueprint
Learning Objective1.4 Explain the role of accounting information in the business planning process
Accounting information provides _______________________ with the tools necessary to evaluate the business plan.