Accounting Principles and Concepts Quiz

Accounting is the measurement, processing, and communication of financial and non-financial information about economic entities such as businesses and corporations.

It measures the results of an organization's economic activities and conveys this information to stakeholders such as investors, creditors, management, and regulators.

Financial accounting, management accounting, tax accounting, and cost accounting.

<p>Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users such as investors, regulators, and suppliers.</p> Signup and view all the answers

<p>Management accounting focuses on the measurement, analysis, and reporting of financial information for internal decision-making purposes.</p> Signup and view all the answers

<p>A private company limited by shares is a type of private limited company where the liability of shareholders to creditors is limited to the capital originally invested in the company.</p> Signup and view all the answers

<p>A private company limited by shares is incorporated under the laws of England and Wales, Hong Kong, Northern Ireland, Scotland, certain Commonwealth jurisdictions, and the Republic of Ireland.</p> Signup and view all the answers

<p>Being 'limited by shares' means that the liability of shareholders to creditors is limited to the capital originally invested in the company.</p> Signup and view all the answers

<p>Shareholders' personal assets are protected in the event of the company's insolvency, but any money invested in the company may be lost.</p> Signup and view all the answers

<p>A private limited company has lighter disclosure requirements, its shares cannot be offered to the general public, and they cannot be traded on a public stock exchange.</p> Signup and view all the answers