15 Questions
What are the different fields into which accounting can be divided?
Accounting can be divided into several fields including financial accounting, management accounting, tax accounting, and cost accounting.
What is the focus of financial accounting?
Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information such as investors, regulators, and suppliers.
What is the main purpose of accounting?
The main purpose of accounting is to measure the results of an organization's economic activities and convey this information to stakeholders such as investors, creditors, management, and regulators.
What is the focus of management accounting?
Management accounting focuses on the measurement, analysis, and reporting of information for internal use by management.
What are practitioners of accounting known as?
Practitioners of accounting are known as accountants.
What does depreciation in accountancy refer to?
An actual reduction in the fair value of an asset and the allocation of the original cost to periods in which the asset is used
How does depreciation affect the balance sheet of a business or entity?
It decreases the value of the asset
What is the purpose of depreciating long-term assets for accounting and tax purposes?
To accurately reflect the decrease in value of the asset over its useful life span
How does the method of depreciating an asset affect the income statement?
It affects the net income reported
How is the cost of a tangible asset allocated as depreciation expense?
Among the periods in which the asset is expected to be used
What does depreciation in accountancy refer to?
Reduction in fair value of an asset and allocation of original cost to periods of use
How does depreciation affect the balance sheet of a business?
It decreases the value of the asset
Why do businesses depreciate long-term assets?
For both accounting and tax purposes
How does the method of depreciating an asset affect the income statement?
It affects the net income
How is the cost of a tangible asset allocated as per depreciation?
Depreciation expense among the periods in which the asset is expected to be used
Test your knowledge of accounting principles and practices with this quiz. Explore topics such as financial reporting, balance sheets, income statements, and more. Assess your understanding of key concepts and terminology in the field of accounting.
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