5 Questions
Which of the following best describes the objective of accounting?
Providing useful information about the firm’s financial position & financial performance to stakeholders through financial statements
According to the American Accounting Association, what is the definition of accounting?
The process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information
Who are the users of financial statements?
The firm's stakeholders and general public
What is the main objective of accounting in terms of providing information?
Providing useful information about the firm’s financial position & financial performance to stakeholders through financial statements
What does the process of accounting involve according to the American Accounting Association?
Identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information
This quiz covers the basic principles and concepts of accounting, the accounting equation, the double entry system, prime entry books, adjustments to final accounts, and preparation of sole trader final accounts. It is based on the course outline by Hema Wijewardene and the recommended text 'Financial Accounting in Sri Lanka' by Wijaya Publishing.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
