Quiz 1

Question 1

1. Accounting can be seen as part of the total............................. system of the

business.

computer
information

commercial
financial

Question 2

1. The following are activities which exclusively come within the scope of
corporate financial decision-making EXCEPT

How much should be invested?

How much is to be allocated to the marketing budget?

Which type of finance should be chosen?

How much finance should be raised?

Question 3

1. The following are recognised as objectives of financial accounting EXCEPT

To support informed judgments and decisions by users.

To provide quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic
decisions and in making resolved choice among alternative courses of
action
To measure the likely risks and returns associated with an enterprise
To provide information about the reporting entity's financial performance
and financial position that is useful to present and potential investors for
assessing the stewardship of the entity's management and for making
economic decisions.

Question 4

1.   ................ is concerned with the collection, measurement and

communication of events in financial terms.
 Management

Finance
Accounting

Business

Question 5

1. The main purpose of management accounting and reporting is to:

plan the activities of an enterprise in the future

determine costs of production processes
set budgets against which actual costs can be compared
provide information for internal decision making

Quiz 2

Question 1

1. For a particular item to be treated as an asset, for accounting purposes, which of the
following characteristics it should have?

A probable future benefit

a bright colour
must be tangible
must be movable

Question 2

1. A statement of financial position aims to meet various user needs. Which

ONE of the following user needs does it NOT aim to meet?
Assess the relationship between assets and claims
Reveal how profit for the period was generated
Provide a basis for assessing the wealth of the business
Assess how business was financed and how funds were deployed.

Question 3

1. Which ONE of the following best describes a non-current asset?

 It will be held for more than a year.

It is held for a fixed term

It does not meet the definition of a current asset

It has a physical substance

Question 4

1. Which of the following CANNOT be a non-current liability?

A loan repayment in 6 months' time

A building society loan payable in 5 years' time

A loan repayment in 6 years’ time

A loan from a friend payable in 5 years' time

Quiz 3:

Question 1

1. The conventional view of depreciation is that it is necessary because

non-current assets can be reported at the amount they are worth

a portion of the cost of non-current assets is matched with the income
they help generate
cash needs to be set aside to replace the asset
it will help to provide a conservative figure of profit for the year

Question 2

1. If sales are £200,000, opening inventory is £20,000, purchases for the year
are £100,000 and gross profit is £110,000, what is the closing inventory?

£10,000
£80,000
£30,000
£90,000

Question 3

1. Which ONE of the following is the correct definition of the profit, or loss, for a
period?
The difference between receipts and payments
 The difference between revenues and expenses
The difference between revenues and payments
The difference between receipts and expenses

Question 4

1. Ellie Limited has the following income statement figures for the financial year
ended 31 May 2014: Cost of sales: £157,000, Revenue: £252,000,
Distribution and selling costs: £30,000, Administration expenses: £25,000.
What is Ellie Limited’s operating profit for the year ended 31 May 2014?

£40,000
£37,000
£65,000
£95,000

Quiz 4

Question 1

1. When creditors of an enterprise have claims only on the assets owned by the
enterprise, and not on the assets of the owners of the enterprise, that
enterprise is:

an unlimited liability company

a limited liability company

a partnership

a sole proprietorship

Question 2

1.  KK plc is listed on the London Stock Exchange. To which ONE of the
following are the auditors of this company primarily accountable?

The UK Government

The company's shareholders

The company's directors

The London Stock Exchange

Question 3
 1.  Which ONE of the following is not normally considered the right of an
ordinary shareholder?

An interest in the profits earned by the company

An involvement in the day-to-day running of the company

Voting rights at meetings

An interest in the net assets of the company

Question 4

1. Preference shares:

pay a specific return to investors

have voting rights

have specific maturity dates

offer investors the same level of risk than ordinary shares