Accounting objectives

1. Which financial statement displays the revenues and expenses of a company for a peniod of time? A. Income statement B. Cosh flow statement C. Balance sheet D. Statement of stockholders' equity 2. What is the main purpose of tinancial accounting? A. Organize financial information B. Provide useful, finnncial information to outsiders C. Keep track of company expenses D. Minimize company taxes 3. Which of these is not included as a separate item in the basic accounting equation? A. Assets B. Revenues C. Liabilities D. Stockholders' equity 4. Which financial statement uses the expanded accounting equation? A. Income statement B. Cash flow statement C. Balance sheet D. Statement of stockholders' equity 5. The accrual basis of accounting records revenues when they are: A. Collected B. Earned C. Contracted D. Readily available for use 6. Asset accounts have what type of balance? A. General joumal B. General ledger C. T-Account D. Ledger account 7. Asset accounts have what type of balance? A. Debit B. Credit C. Contra D. All of the above 8. Wbich account is not a liability account? A. Accounts payable B. Acerued expenses C. Cash D. Notes payable 9. Which account increases equity? A. Expensen B. Withdrawals C. Treamury stock D. Revenuei 10. The accounting principle that states companies and owners should be acooant for ieparately. A. Business eatity concept B. Going concem concept C. Monetary unit assumption D. Periodicity assumption 11. Companies not disclosing an immanent bankruptcy would violate the: A. Business entity concept B. Going concern concept C. Monetary unit assumption D. Periodicity assumption 12. The assumption that states that businesses can divide up their activities into artificial time periods. A. Business entity concept B. Going concern concept C. Monetary unit astumption D. Periodicity assamption 13. Assets are recorded at their original purchase price according to the: A. Materiality principle B. Historical cost principle C. Cost benefit principle D. Consistency principle 14. When estimating unearned revenues, what principle applies? A. Conservatism principle B. Historical cost principle C. Full disclosure principle D. Consistency principle 15. What is not a value of accounting relevance? A. Prodictive value B. Feodback value C. Timeliness D. Reliability 16. The owner of a business takes inventory for ber own use. What are the ledger account entries to fecord this? A. debit drawings, eredit purchases B. debit drawings, credit inventory C. debit capital, credit sales D. debit inventory, credit drawings 17. In a business's books, the ledger account of J Brows, a cuisomer, shows a debit balasce of $450. What does this mean? A. Brown bas paid 5450 to the businesy B. Brown owes the buripess $450 C. the busibess has paid Brown $450 D. the business owes Brown $450 18. A supplier's account in a customer's books, has a crodit balance of 58000 . What does this meas? A. the castomer ower the supplier 58000 B. the customer has paid the supplier 58000 C. the supplier has paid $8000 D. the supplier cwes 58000 19. Bob returns goods bought on credit from Tariq. Which ledger account entries record this in Tariq's books? inTariqsboolcs?A.B.C.D.DebitBobBobSalesreturnsPurchasesteturnsCreditsalesreturnspurehasesrehirnsBobBob 20. Which ledger entries record the purchase of a machine bought on credit? A. debit trade payables, credit machinery B. debit machinery, crodit trade payables C. debit trude payables, credit purchases D. debit purchases, credit trade payables 21. What is the purpose of double entry bookkeeping? A. to apply the dual aspect coocept B. to avoid errors C. to prepare books of prime eatry aceurately D. to record revenue and capital transactions correctly 22. The owner of a business bas taken goods for personal use but not recorded this in the books. Which joumal eatries must be made at the end of the yeur? A.B.C.D.Dooks.WajchjoumalDrawingsDrawingsPurchasesSalesCreditPurchasesSalesDrawingsDrawings 23. A sole trader takes cash and also goods for his own use from bis business. Which of these will affect his capital? A. the cash only B. the goods only C. both the cash and the goods D. neither the cash nor the goods 24. A business bought a computer for the office and paid by cheque. How will the business record this transaction? 25. Which statement is true? A. On 1 January Y was owed $100 by X B. On 10 January Y paid $100 into the bank C. On 20 January Y supplied goods $400 to X D. On 31 Jantary Y was a trade receivable of X for $400 26. The owner of a business takes goods costing $6000 from his shop for his own use. What 27. A trader takes goods that have a selling price of $200 from his shop for has own tse. The cost price of these goods is $150. How is this transaction recorded in his accounting reconds? 28. The owner of a business takes inventory for her own use. What are the ledger account entries to record this? 29. Brown charged Jones for carriage on goods delivered to Jones' premises. What entries will Brown make in his ledger? A.B.carrigeinwardsC.D.DebitJonescarriageoutwardsJonesConesCarriageinwardsCarriageoutwards 30. Which entry reconds a cbeque paid to a supplier for goods bought on credit? A.B.C.D.AccountsdebiredBankBankTradepayableTradePurchBankBank 31. It is said to be an explanation, a record, a summary or a history of similar or particular transactions or events. What is this in accounting? 32. - is the list of all credit and debit balances on the various accounts at a particular point in time (usually sbown in debit and credit columns). 33. . is a book which contains a condensed and classified record of all the pecuniary transactions of the business generally brought, transferred or posted from the books of original entry. 34. Information in financial statements is the output of the accounting information system; recording transactions is the, __ classifying, summarizing and analyzing are theand the financial statement is the- 35. The tnding account is prepared to derive- 36. Expenses and revenues that has not been paid or received on time are known as 37. are those expenses to be used in the following period but have been paid for in advance. 38. The cost of asset that is acquired to be used in the organization for a period more than one year is known-...... 39. The expenditure which is incurred to acquire, manufacture or improve assets for the purpose of earning income over time in an organization is known as 40. State the basic unique critical feature of the ledget-..m.n.... 41. Top managemett works on A. strategic plan B. corporate plas C. budgeting D. both A \& B 42. First step in planning process is to: A. Set an objective B. Evaluate alternatives C. Determine strength and weaknesses D. none of above 43. In what order do mansgers typically perform the manegethial functions? A. Organizing, planniag, controlling, leadiag B. Organizing, leading, planning. controlling C. Planning, organizing, lending, controlling D. Planning, organizing, controlling, leading 44. At what level of an organization does a corporate manager operste? A. Functional B. Operational C. Middle Ievel D. Top level 45. Which term best describes the process of obtaining, deploying, and utilizing a variety of essential resources to conaribute to an organization's success? A. Planning B. Organizing C. Stafing D. Management 46. Which management function involves setting goals and objectives and ereating specific plans for completing them? A. Planning B. Organizing C. Controlling D. Lesding 47. Which level of management is responsible for establistuing a vision for the organization, developing broad plans and strategies, and directing subordinate managers? A. First level managers B. Middle managers C. Executive managers D. Second level managers 48. Which management principle states that orders and instructions should flow down from top to bottom or from a higher-level manager to a lower one? A. Division of work B. Chain of command C. Unity of direction D. Unity of command 49. A manager who possesses knowledge of the processes, equipment, and potential problems of an indastry would possess what type of managerial skill? A. Technical B. Administrative C. Interpersonal D. Organizational 50. For a manager, which should take pnority- the job task or the employees performing the job? A. The job task always takes priority over employees. B. Employees always take prionity over the job task. C. Neither, a manager should balance interest in the job tnsk with the needs of the employees performing the fob. D. Neither, adruinistration of the business takes prionity over the job task and the employecs. 51. Which management furction involves measuring results, comparing results to expectations, and taking corrective action? A. Planning B. Organizing C. Leading D. Controlling 52. Which of the following characterize a manager as being effective? A. They use a minimum amount of resouroes for the amount of outputs produced. B. They devote a large amount of time to planning. C. They achieve their goals. D. They intervicw, select, and train people who are most suitable to fill open jobs. 53. Which management principle states that work should be divided so that each person will perform a specialixed portion? A. division of work B. Chain of command C. Unity of direction D. Unity of command 54. In management, the various roles that managers are called on to perform are defined in which process? A. management process B. Executive process C. Business process D. Supervisory process 55. Which types of managers are responsible for reporting to middle managers? A. Employees B. Managers C. Executive managers D. Second level managers 56. Which part of the management process includes measuring results, comparing results to expectations, and taking corrective action to bring results in to line? A. Planning B. Organizing C. Leading D. Controlliag 57. Which influential thought leader is known for his commoticnse spgroych se self:improvement as demonstrated through the book he authored, Hom on wit Fneade and lnfluence People? A. Dale Carnegic B. Frederick W. Taylor 58. Which influential thought leader is kown is the father of seientific management? A. Dale Camegie B. Frederick W. Taylor C. W, Edwards Deming D. Peter F, Drucker 59. Which influential thought leader is known for his theory on organizational forms? A. John Maxwell B. Tom J. Peters C. Henry Mintzberg 60. By exceeding the monthly marketing budget set for a company, a manager would fail to D. John P. Kotter meet which type of performance measure? A. Quantity B. Quality and workmanship C. Cost and budget control D. Customer satisfaction