inancial accounting is the branch of accounting concerned with:

a.the preparation and communication of information for external users.

b.provision of financial investment advice.

c.the filing of tax returns.

d.providing internal users with information to facilitate planning and control.

Useful accounting information should possess certain qualitative characteristics if it is to be useful for decision making. These characteristics relate to:

a.relevance, reliability (or faithful representation), comparability, verifiability, understandability and timeliness.

b.relevance, reliability (or faithful representation), comparability, effectiveness, understandability and honesty.

c.relevance, reliability (or faithful representation), integrity, verifiability, efficiency and honesty.

d.relevance, reliability (or faithful representation), integrity, effectiveness, understandability and timeliness.

What group in New Zealand provides primary oversight of the accounting profession/practice?

a.Chartered Accountants New Zealand and Australia

b.The New Zealand Government

c.Ministry of Business, Innovation, and Employment (MBIE)

d.The External Reporting Board (XRB)

Mullins manufactures furniture. Mullins has given you its most recent annual report in an effort to obtain a sizeable loan. The company is very profitable and appears to have a strong financial position. However, based on a news report you saw on television last night, you are aware that Mullins is a defendant in a class action lawsuit related to defective products. Serious injuries were allegedly caused by Mullins' infant high chairs overturning.

a.conservative

b.comparable

c.relevant

d.predictable

What are the three generally accepted forms of "capital" essential for organisational operation?

a.economic, personal, property plant and equipment

b.economic, human, environmental

c.income, people, knowledge

d.intellectual, economic, human

Which of the following is NOT an advantage of a sole proprietorship?

a.Owner receive the entire profit

b.Personal satisfaction

c.Unlimited liability

d.Independence

Which of the following is NOT a characteristic of a for-profit entity?

a.It has an ownership structure that can be purchased and sold

b.It primary objective is to provide a social and community benefit

c.It's primary objective is to make a profit

d.It requires economic capital to operate

What is NOT a characteristic of a limited liability company?

a.It is a separate legal entity to its owners.

b.The owners have unlimited liability, i.e. they are liable for anything that happens in the entity.

c.It has an indefinite life.

d.It is owned by shareholders.

Which of the following is not an indicator of a reporting entity?

a.The entity is politically or economically important.

b.The entity receives government grants.

c.The entity is managed by individuals who are not owners of the entity.

d.The entity is considered large in terms of sales, assets, borrowings, employees and customers.

An organisation is viewed as a part of the wider social system. Which among the following forms a part of that social system?

a.employees

b.interest groups

c.investors

d.All of the given answers are correct.

Which of the following is NOT a component of the four-step accountability model?

a.Why is the organisation collecting and reporting particular information?

b.How is the organisation collecting the information?

c.What information is the organisation collecting and reporting?

d.To whom is the organisation reporting information?

A governmental department can best be described by which of the following statements?

a.has a primary purpose of using taxpayer funds to provide services

b.has regular shareholder meetings

c.has a primary purpose of making a profit

d.produces goods for sale to the public

One among the duties of accountability is to provide a reckoning or account of those actions to the ____________.

a.chief executive officer and chief financial officer

b.chief executive officer

c.stakeholders

d.chief financial officer

Accounting information is relevant if it:

a.is immaterial.

b.is not material users' decision-making.

c.would influence users' decision-making .

d.makes no difference to users' decision-making.

Why are entities required to report?

a.Because there is a legal requirement for them to report.

b.They voluntarily report to forestall the imposition of legal requirements.

c.To increase profits.

d.To respond to a crisis.

e.All of the above.