The measurement stage of accounting is accomplished by

- REPORTING TO DECISION MAKERS

The most appropriate and modern definition of accounting
- THE MEASUREMENT, PROCESSING AND COMMUNICATION OF FINANCIAL INFORMATION ABOUT
AN IDENTIFIABLE ENTRY.
A company ability attracts and hold investment capital ultimately depends upon its
- PROFITABILITY
Primary user of accounting information with direct financial interest in business.
- CREDITOR
Activity is not usually associated with management accounting
- TAX ACCOUNTING
The function of the certified public accountant that is most heavily relied on by the public as a whole is
- AUDITING
Following is not broad subdivision within the accounting profession
- MANAGEMENT ACCOUNTING
Accounting for hospital, colleges and foundation is part of which broad subdivision within the
accounting profession
- NONPROFIT ACCOUNTING
Transactions does not involve an exchange of value
- LOSS FROM THEFT
Considered by the accounting to be a separate entity from its owner.
- ALL OF THE ABOVE
Not a component of the complete set of financial statement
- BANK RECONCILIATION STATEMENT
Period covered by the prepared financial statement
- CANNOT BE LONGER THAN 12 MONTHS
Statement is incorrect?
- UNDER THE BUSINESS ENTITY PRINCIPLE, THE OWNER AND THE BUSINESS THAT HE FORMED ARE
CONSIDERED AS ONE INSEPARABLE ENTITY.
The FS are prepared at the end of the period report
- THE CONTRIBUTION OF THE BUSINESS TO THE GROWTH OF THE COMMUNITY
FS most useful assessing the financial flexibility of a business enterprise
- BALANCE SHEET
AN Internal user of the financial data
- MANAGEMENT
An internal data-user
- COMPANY TREASURER
Creditor’s information needs to involve making all the decision, except

Fundamental accounting equation is

- LIABILITIES + EQUITY = ASSETS
The net income of reporting period is equal to
- Income – expenses
-
Permanent account would include:
- ASSETS, LIABILITIES AND EQUITY
Temporary account would include
- DRAWING, INCOME AND EXPENSES
Following statement is correct
- DOUBLE ENTRY BOOKKEEPING SYSTEM ASSUMES THAT EVERY TRANSACTION INVOLVES A
SIMULTANEOUS VALUE RECEIVED AND VALUE GIVEN UP
The systematic and orderly performance of the step that will lead to the preparation – FS is called:
- ACCOUNTING CYCLE
Following statement is FALSE
- THE CLOSING PROCESS SHOULD ALWAYS FOLLOW THE SUMMARIZING AND REPORTING PROCESS
Following is INCORECT
- THE PREPARATION OF THE FS IS ALWAYS PROCEDED BY THE PREPARATION OF A WORKSHEET.
Preparation of worksheet is the process of preparing summary of balances of accounts in the general
ledger.
- FALSE
Journalizing is the process of transferring the recorded transaction from the journal to the account
in the ledger
- FALSE
The account is sorting device used to record, classify and summarized the increases and decreases in the
balance of each accounting element as result completed transaction of the business enterprise.
- TRUE
All enterprise must be supported with a source document
- TRUE
All enterprise must account and amounts
- TRUE
The recognition of an income is generally occupied by the increase asset, decrease in liabilities or both.
- TRUE
A general journal may have more than 2 money columns
- False
The journal is the book of the original entry
- TRUE
A = increased in asset- increased in liability
B= increase in asset- increase in revenue
C = increase in asset decreased in liability
D = decrease in asset- increased expenses
E = increase in asset – increase in capital

Borrowed money from the banks – A

Render repair service – D
Paid taxes and licenses – D
Purchase equipment on account – A
Paid electric bill – D
Owner invested cash – E
Received rental income – B
Payment account to the bank – C
Paid for advertising expense – D
The owner invested his automobile to the business – E

Double entry bookkeeping system:

- All the above statement are true
An account has the following uses, except
- Accounting device used to detect errors committed
In accounting the term debit is used to indicate
- Decrease in liability and equity
The term credit is used to indicate:
- Increase in liability and equity
A credit to equity is
- Due to all of the above.
Rule of the debit and credit are based on the assumption that
- For every value receive, there is simultaneous equal value parted with
Book of account include:
- Journals and ledger

ACCOUNTING – defined as art of recording, classifying and summarizing a significant manner and in the
terms of money transactions and events which are in part at least of financial character and interpreting
the result thereof.