Accounting Basics Quiz
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Questions and Answers

What is the primary focus of financial accounting?

  • Recording of financial transactions
  • Supporting accounting functions and related activities
  • Reporting financial information to external users (correct)
  • Analysis and reporting of information for internal use
  • Which field of accounting focuses on the measurement and reporting of information for internal use by management?

  • Management accounting (correct)
  • Tax accounting
  • Cost accounting
  • Financial accounting
  • What is the term used for the most common system of recording financial transactions?

  • Single-entry bookkeeping
  • Accrual accounting
  • Double-entry bookkeeping (correct)
  • Cash basis accounting
  • Which term is often used interchangeably with 'accounting'?

    <p>Financial reporting</p> Signup and view all the answers

    What is the main purpose of accounting information systems?

    <p>Supporting management decision-making</p> Signup and view all the answers

    Who are the primary recipients of financial information prepared through financial accounting?

    <p>Investors, regulators, and suppliers</p> Signup and view all the answers

    Who is usually attributed with the development of the double-entry accounting system?

    <p>Luca Pacioli</p> Signup and view all the answers

    Which organization in the United States sets generally accepted accounting principles (GAAP)?

    <p>Financial Accounting Standards Board (FASB)</p> Signup and view all the answers

    Where was the Summa de arithmetica, the first published work on a double-entry bookkeeping system, published?

    <p>Italy</p> Signup and view all the answers

    Which ancient civilization is closely related to developments in writing, counting, and early forms of bookkeeping?

    <p>Ancient Mesopotamia</p> Signup and view all the answers

    Which word is derived from the Old French word aconter and means 'to reckon'?

    <p>Accounting</p> Signup and view all the answers

    Which country had local professional bodies merging to form the Institute of Chartered Accountants in England and Wales in 1880?

    <p>England</p> Signup and view all the answers

    What is the base word for 'computare' which means 'to reckon'?

    <p>'To count or calculate'</p> Signup and view all the answers

    Which word is derived from the French word compter and also from the Italian and Latin word computare?

    <p>'Accountant'</p> Signup and view all the answers

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