Question 1
The accounting system that reveals the financial position of a business is:
answers
A.management accounting.
B. cost accounting.
C. financial accounting.
D. manual accounting.

Question 2
The main objective of any business is:
answers
A.making profit.
B. providing service.
C. manufacturing products.
D. serving social interests.

Question 3
Maintaining a systematic accounting system and recording all financial transactions helps determine:
answers
A. expenses.
B. revenue.
C. sales.
D. profit or loss.

Question 4
Which accounting system involves recording, classifying, summarizing, communicating, interpreting, and reporting financial information to interested parties?
answers
A. Cost accounting
B. Financial accounting
C. Computerized accounting

Question 5
The process of recording and maintaining day-to-day business transactions is called:
answers
A. bookkeeping.
B. preparing financial statements.
C. preparing records.
D. cost accounting.

Question 6
Which accounts of a business can outsiders view?
answers
A. Financial accounts
B. Cost accounts
C. Management accounts
D. Single entry accounts

Question 7

Which accounting system provides information to help management make decisions?
answers
A. Financial accounting system
B. Cost accounting system
C. Management accounting system
D. Double entry accounting system

Question 8

Which accounting system helps ascertain, analyze, and control cost?
answers
A. Financial accounting system
B. Cost accounting system
C. Management accounting system
D. Bookkeeping

Question 9
In which type of accounting system are records prepared and maintained using a computer?
answers
A. A financial accounting system
B. A computerized accounting system
C. A management accounting system
D. A cost accounting system

Question 10
If you wanted to be an accountant, what type of basic knowledge would you need?
answers
A. Business knowledge
B. Accounting knowledge
C. Management knowledge
D. Economic knowledge

Question 11
Who verifies the accuracy of an organization’s records and checks for mismanagement, waste, or fraud?
answers
A. An accountant
B. An internal auditor
C. A manager

Question 12
The excess of revenue over expenditure is called:
answers
A. loss.
B. profit.
C. expense.
D. revenue.

Question 13
A person who undertakes and operates a new enterprise or venture and assumes some accountability for the inherent risks is called a/an?
answers
A. entrepreneur.
B. manager.
C. accountant.
D. employee.

Question 14 text
A business which converts raw material into finished goods is called a?
answers
A. service business.
B. merchandising business.
C. manufacturing business.
D. corporation.

Question 15

The buying and selling business activity is called:
answers
A. servicing.
B. merchandising.
C. manufacturing.
D. reselling.

Question 16

A business started and run by two or more people based on an agreement is called a:

answers
A. sole proprietorship.
B. partnership.
C. corporation.
D. publicly held corporation.

Question 17

In which form of business do owners have limited liability?
answers
A. Sole proprietorship
B. Partnership
C. Merchandising business
D. Publicly held corporation

Question 18

Which accounting assumption implies that a business is separate and distinct from the person who supplies capital to it?
answers
A. Accounting period assumption
B. Business entity assumption
C. Going concern assumption
D. None of the above

Question 19
The modern accounting system is called the:
answers
A. double entry system.
B. single entry system.
C. manual system.
D. none of the above.

Question 20
Which accounting assumption divides the life of a business into specific periods for reporting purposes?
answers
A. Accounting period assumption
B. Business entity assumption
C. Going concern assumption
D. None of the above

1 C
2 a
3 D
4 B
5. A
6 A
7. C
8. B
9. B
10 B
11 B
12 B
13 A
14 C
15 D
16B
17 D
18 B
19 A
20 A

Those are my answer, but I graduated 12 years ago. Go back and look in your text books and verify them. That way you’ll learn it and be able to use the knowledge later.

3 Responses

1. Thrasher Says:
   February 7th, 2010 at 4:20 am

   1 C
   2 a
   3 D
   4 B
   5. A
   6 A
   7. C
   8. B
   9. B
   10 B
   11 B
   12 B
   13 A
   14 C
   15 D
   16B
   17 D
   18 B
   19 A
   20 A

   Those are my answer, but I graduated 12 years ago. Go back and look in your text books and verify them. That way you’ll learn it and be able to use the knowledge later.
   References :
   CPA

2. Grandma of 2 Says:
   February 7th, 2010 at 5:10 am

   I realize that accounting can be a tough subject to get a handle on….but do you really think that someone else should be doing your work for you??? There must be a book you are working out of that with a little effort will give you the answers you are looking for. Or possibly notes you took in class?? I would never have gotten into the accounting field if I had someone else doing all the work for me. As much as I would love to answer all your questions, your first effort should come from you. Sorry.
   References :

3. euan Says:
   February 7th, 2010 at 5:25 am

   1.c
   2.a
   3.d
   4.b
   5.a
   6.a
   7.c
   8.c
   9.b
   10.b
   11.c
   12.b
   13.a
   14.c
   15.b
   16.b
   17.b
   18.b
   19.a
   20.a

   be ready accounting subjects are more difficult in higher years… good luck
   References :

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