QUIZ-Accounting

Q1:
To be reliable, accounting information must be:
(1) verifiable,neutral,and relevant
(2) verifiable,free of errors and available on time
(3) factual,free of material errors and bias,and neutral
(4) relevant,understandable and verifiable.

Which of the above statement is correct:

A. 1 only
B. 2 only
C. 3 only
D. Both 1 and 2
Q2:
In accounting, consistency means:
1.Using the same methods in preparing financial statement from year to year.
2.Using the same accounting records and books from year to year.
3.Following the same regulations in hiring and firing employees from year to year.
4.The company should never change the methods used in preparation of financial
reports.
The correct answer out of above is:
A. 1 only
B. 2 only
C. 3 only
D. both 1 and 4

Q3:
According to the accounting entity assumption ‫افتراض كيان المحاسبة‬,the business is not only
separated from its creditors and customers, but also separated from:
(1) Its owners
(2) Other entities
(3) Its compititors
(4) Government regularity agencies.
Which of the above statement is correct:
A. 1 only
B. 2 only
C. 3only
D. All statements are correct.

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Q4:
The process of formally recording and reporting an item in the financial statements is called:
(a) Recognition
(b) Measurement
(c) Disciosure
(d) Presentation
Q5:
The practice of expense recognition is called:
(a) Matching
(b) Monetary
(c) Going concern
(d) Time period
Which of the above is correct:
1. A only
2. B only
3. C only
4. D only
Q6:
In the balance sheet,accounts receivable are subtracted by:
‫ يتم خصم الحسابات المستحقة القبض من خالل‬، ‫في الميزانية العمومية‬

(a) Sales returns

(b) Sales discount
(c) Sales returns and discount
(d) Allowance for doubtful accounts ‫بدل الحسابات المشكوك في تحصيلها‬
The correct answer out of above statement is:
1. A only
2. B only
3. C only
4. D only
Q7:
The assumption which assume that the enterprise has a limited life is :
(a) Going concern assumption ‫مبدأ االستمرارية‬
(b) Time period assumption
(c) Accounting entity assumption
(d) None of the above

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Q8:
The purpose of short-term investments is :
1. control other companies
2. income generation ‫توليد الدخل‬
3. profitability
4. liquidity
which of the above statement is correct:
A. 1 only
B. 2 only
C. 3 only
D. 4 only
Q9:
In the balance shee,assets are reprted in order of:
1. Profitability
2. Solvency
3. Flexibility
4. Liquidity
Which of the above statement is correct:
A. 1 only
B. 2 only
C. 3 only
D. 4 only
Q10:
The principle which determines the amount and kind of information should be presented by
the company is: :‫المبدأ الذي يحدد كمية ونوع المعلومات التي يجب تقديمها من قبل الشركة هو‬
1. Cost
2. Time period
3. Going concern
4. Full disclosure ‫الكشف الكامل‬
Which of the above statement is correct:
A. 1 only
B. 2 only
C. 3 only
D. 4 only

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 SECTION(2)

The pimary objective accounting is to provide useful information to help users in making their
decision.To satisfy the users need for information,accounting prepares a set of multi-purpose
financial statements:
1. why does accounting prepare a set of multi-purpose financial statements?
The primary objective of financial statement analysis is to understand and diagnose the
information contained in financial statement with a view to judge the profitability and financial
soundness of the firm, and to make forecast about future prospects of the firm. to provide
information about the results of operations, financial position, and cash flows of an
organization. ... This information is of considerable use, since cash flows do not always match
the revenues and expenses shown in the income statement
2. why do managers need accounting information?
Managers are internal users of accounting information:
 and they are: Individuals inside a company who plan,
organize and run the business, to perform these
functions and to answer many important questions,

managers need accounting information .

3. although the primary purpose of trail balance is to prove the mathematical equality of
debits and credit after posting, but it does not prove that all transactions have been recorded
or the ledger is correct. Discuss:
If equal debits and credits are entered into the wrong accounts, a transaction is not recorded
or offsetting errors are made with a debit and credit at the same time, a trial balance would
still show a perfect balance between total debits and credits
‫ لم يتم تسجيل معاملة أو إجراء أخطاء موازية مع خصم‬، ‫في حالة إدخال حسابات دائنة وائتمانات متساوية في حسابات خاطئة‬
‫ سيظل الرصيد التجريبي يظهر تواز ًنا مثاليًا بين إجمالي الديون واالئتمانات‬، ‫دائن وائتمان في نفس الوقت‬

4. one of the primary objectives of financial reporting is to provide useful information about
the company(cash flow) Discuss:
The cash flow report is important because it informs the reader of the business cash position.
... It needs cash to pay its expenses, to pay bank loans, to pay taxes and to purchase new
assets. A cash flow report determines whether a business has enough cash to do exactly this.

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 SECTION(3)
The conceptual framework of financial reporting represents a coherent system of interrelated
objectives and fundamentals that can lead to aset of consistent rules and standards used in
preparing financial reports:
1) To relevant accounting information should have three values. Discuss.
2) Understandability ofv accounting information depends on two things. Discuss.
3) What are the advantages that are provided by accounting assumptions,accounting
priciples,and constraints?
4) Revenue recognition stated four conditions to earn revenue. Discuss.
5) Although revenue is recognized at point f sale,but sometimes revenue may recognized
during production, or at completion of production or when cash is received. Discuss.
6) When an item does is recognized as not material?

SECTION(4)
Income statement is the one of the four basic statements prepared by the company, and it
measures the results of operations and for a period of time:
1. There are three probability of the final result of income statement. Discuss
is to measure the results of operations for a period of time which usually one year,
and the results of operations may be a profit or a loss or BEP ( Breakin event point )
2. Differentiate between sale revenue and other revenue.
Sale revenues:
Sales revenues are revenues from primary activities (sale of good and provide of
services)
II.Other Revenues:
are revenues from non-operating (secondary)activities like securities revenue, rent
revenue, gains on sale of fixed assets, .

3. One of the usefulness of income statement it to evaluates the past performance of the
company. Discuss.
examining revenues and expenses,
indicates how the company performed and
allows comparison of its performance to its competitors
4. What is the difference between sale returns and sale discounts?
Sales returns is a reduction of sales revenues for return for unsatisfactory goods.
A sales discount is a reduction in the price of a product or service that is offered by the
seller, in exchange for early payment by the buyer. A sales discount may be offered when
the seller is short of cash, or if it wants to reduce the recorded amount of its receivables
outstanding for other reasons
5. In income statement expenses are classified into two main groups: operating
expenses and other expenses.Discuss.

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 Operating expenses are those expenditures that a business incurs to engage in activities not
directly associated with the production of goods or services.
Other expenses are expenses of secondary activities (cash paid for non-operating
activities) such as: interest expense, loss on sale of fixed assets

6. What are the advantages of single-step and mulyiple-step income statement?

The primary advantage of single- step income statement format lies on its simple
presentation.
•And usually single-step income statement used by small enterprises