1. Which of these is an important feature of accounting?
a. Recording transactions and financial activity
b. Noting down the debits and credits
c. Interpreting the accounts and financial activity
d. All of the options

2. An accountant is
a. A person who carry out an independent examination of the financial statements of
a business.
b. A person who is responsible in collecting, recording, summarizing, analysing and
communicating financial information for decision making purpose.

3. Book-keeping is:
i. A process of recording business activities in the accounting books.
ii. One part of accounting.
iii. Organising information into certain categories so as to know how much profit or loss
has been made, how much is owned and owed by the business.
a. (i) and (iii)
b. (ii) and (iii)
c. (i) and (ii)
d. All of the above

4. Purposes of accounting in business are:
i. Planning future activities.
ii. Controlling the activities.
iii. Assist in decision making.
iv. Report on the activities and financial performance of the business to interested
parties.
a. (i), (ii) and (iii)
b. (i), (ii) and (iv)
c. All of the above
d. (iii) and (iv)

5. One of the processes of accounting involves classifying and summarising of information.
What does it means?
i. Recording information into the accounting books.
ii. Providing information to owners or other users of accounting information.
iii. Organising information into certain categories so as to know how much profit or loss
has been made, how much is owned and owed by the business.
iv. Entering each transaction twice in the accounting books.
a. (iv)
b. (iii)
c. (ii)
d. (i)

Answer rating: 100% (QA)

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