10 Questions
True or false: Accounting can be viewed as an information system which has its input processing methods and output.
True
True or false: There is no difference between bookkeeping and accounting, both are the same.
False
True or false: Management Accounting covers the preparation and interpretation of financial statements and communication to the users of accounts.
False
True or false: Financial accounting is concerned with internal reporting to the managers of a business unit.
False
True or false: Book-keeping is the recording phase while accounting is concerned with the summarizing phase of an accounting system.
True
Match the following terms with their correct definitions:
Accounting = Process of identifying, measuring and communicating information to permit informed judgement and decisions Book-keeping = Recording phase of an accounting system Financial accounting = Preparation and interpretation of financial statements and communication to the users of accounts Management accounting = Concerned with internal reporting to the managers of a business unit
Match the following statements with their correct assessment:
Accounting is an information system with input processing methods and output. = True There is no difference between book keeping and accounting. = False Management Accounting covers the preparation and interpretation of financial statements. = False Financial accounting is concerned with internal reporting to the managers of a business unit. = False
Match the following terms with their correct focus:
Accounting = Preparation of financial statements and communication to the users of accounts Book-keeping = Recording and organizing financial transactions Financial accounting = External reporting to investors, creditors, and government agencies Management accounting = Internal reporting for decision-making purposes
Match the following terms with their correct description:
Accounting = Broad subject involving identifying, measuring, and communicating information for informed decisions Book-keeping = Recording of financial transactions in a systematic manner Financial accounting = Focuses on historical financial data for external stakeholders Management accounting = Analyzing financial data for internal decision-making
Match the following statements with their accurate representation:
Financial accounting covers the preparation and interpretation of financial statements. = True Management accounting is concerned with internal reporting to the managers of a business unit. = True Book-keeping is the recording phase while accounting is concerned with the summarizing phase. = True Accounting can be viewed as an information system with input processing methods and output. = True
Test your knowledge of the meaning and scope of accounting with this quiz focused on the information system aspect of accounting and the preparation of financial statements.
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