(1) debit

(2) if an asset account increases, you ____ the account

(3) credit
(4) if an asset account decreases, you ____ the account
(5) credit
(6) if a liability OR owner's equity account increases, you ____ the account
(7) debit
(8) if a liability OR owner's equity account decreases, you ____ the account
(9) owner's equity
(10) sales is a ____ account
(11) asset
(12) cash is a ____ acount
(13) owner's equity
(14) and account including the word "expense" is a ___ account
(15) liability
(16) accounts payable is a ____ account
(17) asset
(18) accounts receivable is a ___ account
(19) two
(20) all transactions effect at least __ accounts
(21) normal balance
(22) the side of an account that is increased is called the ___ of the account
(23) chart of accounts
(24) a list of accounts used by a business
(25) accounts payable
(26) amounts to be paid in the future for goods/services that you have ALREADY
acquired
(27) accounts receivable
(28) amounts to be received in the future due to the sale of goods and services
(29) T-accounts
(30) an accounting device used to analyze transactions
(31)Consider the following statements:
(32)1. The purpose of accounting is to prepare financial reports for users on a regular basis.
(33)
(34)2. There is normally no close substitute for information contained in accounting reports.
(35)
(36)Which of the above statements are correct (true/false)?
(37)False
(38)True
(39)
(40)
(41)Accounting exists primarily to help user __________.
(42)decision-making
(43)
(44)
(45)The study of business investment and financing decisions is known as:
(46)financial accounting
(47)
(48)
(49)In recent decades, which one of the following has not resulted in the business environment
becoming more turbulent and competitive?
(50)Increasing regulation of domestic markets
(51)
(52)
(53)How should managers deal with risk when setting objectives?
(54)balance it against likely returns
(55)
(56)
(57)Which of the following changes have occurred to management accounting as a result of changes
in the competitive environment?
(58)(i)
(59)More outward-looking
(60)(ii)
(61)More concerned with finding new ways of managing costs
(62)(iii)
(63)More subject to external regulation
(64)
(65)Is it:
(66)(i) and (ii)
(67)
(68)
(69)Generally speaking, the higher the level of risk, the higher the expected return from an
investment.
(70)True
(71)
(72)
(73)Which area of study is most closely associated with acquiring and deploying the short-term and
long-term finance required by a business?
(74)Financial management
(75)
(76)
(77)One purpose of accounting information is to help certain users assess how effectively the
managers are running the business and to make judgements about likely levels of risk and return
in the future. Which user group is most likely to use accounting information for this purpose?
(78)Owners
(79)
(80)
(81)Not-for-profit organisations have ___________ user groups to private-sector businesses. These
groups use accounting information for ___________ purposes.
(82)similar, decision-making
(83)
(84)
(85)The various user groups for accounting information use that information in different ways. Match
the user group shown in the left column with the corresponding usage shown in the right
column, choosing the appropriate letter in the drop-down menu.
(86)Customers-Are there sufficient financial resources to complete an order?
(87)
(88)Competitors-How well is the opposition doing?
(89)
(90)Employees-Can the business continue to offer employment?
(91)
(92)Government-Is there tax due on business profits?
(93)
(94)Suppliers-Can the business pay for goods bought on credit?
(95)
(96)Lenders-Can the business repay loans and interest?
(97)
(98)Owners-Should more shares be bought, or should some be sold?
(99)
(100) Managers-How can the business become more financially efficient?
(101)
(102) Investment analysts-Should they advise clients to buy or sell shares?
(103)
(104) Community representatives-What impact does the business have on the environment?
(105)
(106)
(107) Accounting can only be useful if it is capable of affecting people's ___________.
(108) behaviour
(109)
(110)
(111) Which one of the following is an internal user of financial information?
(112) Management
(113)
(114)
(115) Which user group usually has most control over the range and content of information it
receives?
(116) Managers
(117)
(118)
(119) Consider the following statements:
(120)
(121) 1. Businesses tend to produce accounting information that exceeds the minimum
requirements required by accounting regulations.
(122) 2. Accounting reports are usually designed to be understood by everyone.
(123)
(124) Which of the above statements are correct (true/false)?
(125) True False
(126)
(127)
(128) The text states that accounting is concerned with collecting __________ and
_________ financial information.
(129) analysing, communicating
(130)
(131)
(132) Which ONE of the following qualities is most concerned with influencing users' decisions
concerning the prediction of future events and the confirmation of past events?
(133) relevance
(134)
(135)
(136) The increasingly turbulent and competitive environment in which businesses operate
has led to the introduction of _____________ management.
(137) strategic
(138)
(139)
(140) According to Peter Drucker, an eminent management thinker, the purpose of a business
is to:
(141) create and keep a customer
(142)
(143)
(144) Consider the following forms of business:
(145)
(146) 1. Sole proprietorship
(147) 2. Partnership
(148) 3. Limited company
(149)
(150) Which of the above businesses do not normally require formal procedures to set them
up?
(151) 1 and 2
(152)
(153)
(154) Consider the following statements.
(155) 1. The role of the chair is to lead the management team.
(156) 2. The role of the chief executive is to lead the board of directors.
(157) Which of the above statements are correct (true/false)?
(158) False
(159) False
(160)
(161)
(162) Which ONE of the following best describes what the statement of financial position
reports?
(163) The assets of, and the claims against, the business
(164)
(165)