Accounting 1

1 The following are users of financial information except: a. Potential Shareholders b. Existing Shareholders c. Lenders d. None of the above 2 Which one of the following is not a qualitative characteristic of financial information? a. Faithful representation b. Accountability c. Verifiability d. Relevance 3 Which of the following basic accounting equations are correct? a. AO=AL b. A=L+O c. Both A and B d. None of the above 4 The following is an example of an intangile asset: a. Manufacturing plant b. Motor vehicle c. Laptop d. Laptop Software 5 Which of the below reflects the financial position of the business on a specific date? a. Balance Sheet b. Income Statement c. Cash Flow Statement d. None of the above 6 Which of the following provides details about the movement of money with regard to operating, investing and financing activities? a. Balance Sheet b. Income Statement c. Cash Flow Statement d. None of the above 7. When preparing financial statements, creditors will be reflected as: a. Trade and other receivables b. Trade and other Payables c. Equity d. Other income