K_ The main aim of accounting is to

Amaintain ledger accounts for every transaction

Bprovide financial information to users of such information

Cprepare trial balance

Drecord every financial transaction individually

(2 marks)

1.2The main aim of financial accounting is to

Arecord all transactions in the books of accounts

Bprovide management with detailed analyses of costs

Cpresent the financial results of the organisation by means of recognised statements D calculate profit

(2 marks)

1.3Financial accounts differ from management accounts in that they

Aare prepared monthly for internal control purposes

Bcontain details of costs incurred in manufacturing

Care summarised and prepared mainly for external users of accounting information D provide information to enable the trial balance to be prepared

(2 marks)

1.4Which one of the following does not apply to the preparation of financial accounts?

AThey are prepared annually.

BThey provide a summary of the outcome of financial transactions.

CThey are prepared mainly for external users of accounting information.

DThey are prepared to show the detailed costs of manufacturing and trading.

(2 marks) 1.5Which of the following statements gives the best definition of the objective of accounting?

ATo provide useful information to users.

BTo record, categorise and summarise financial transactions.

CTo calculate the taxation due to the government.

DTo calculate the amount of dividend to pay to the shareholders.

(2 marks)