Accounting Principles and Practices Quiz
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Questions and Answers

What is the main purpose of accounting?

  • To measure the results of an organization's economic activities (correct)
  • To prepare financial statements
  • To process information about economic entities
  • To convey information to stakeholders
  • Who are the external users of financial accounting information?

  • Management, accountants, and creditors
  • Employees, customers, and competitors
  • Investors, regulators, and suppliers (correct)
  • Tax authorities, auditors, and board members
  • What is the focus of management accounting?

  • Preparation of financial statements
  • Processing information about economic entities
  • Measurement, analysis, and reporting for internal use by management (correct)
  • Conveying information to stakeholders
  • What are the different fields of accounting mentioned in the text?

    <p>Financial accounting, managerial accounting, tax accounting, and cost accounting</p> Signup and view all the answers

    What are practitioners of accounting known as?

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

    What is the main purpose of a trial balance?

    <p>To check the accuracy of the general accounting ledger</p> Signup and view all the answers

    Who uses a trial balance to identify errors?

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

    What can a trial balance help to minimize?

    <p>Errors in financial statements</p> Signup and view all the answers

    What does a trial balance verify in a double-entry accounting system?

    <p>The accuracy of the general accounting ledger</p> Signup and view all the answers

    What is the limitation of a trial balance?

    <p>It can't incontrovertibly prove the absence of errors</p> Signup and view all the answers

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