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Chapter 1 The Fundamentals of Accounting

MULTIPLE CHOICE QUESTIONS

B2C01T1Q001eng
In financial accounting, the information reported is expected to have which of the following attributes?
| |Presented in |Financial statements are |
| |a standard format |prepared on a regular basis |
|A. |No |Yes |
|B. |Yes |Yes |
|C. |No |No |
|D. |Yes |No |

Answer: B

B2C01T1Q002eng
Financial statements A. are a process of recording daily transactions. B. are one of the two major branches in accounting. C. report past results. D. do not involve personal judgements.

Answer: C

B2C01T1Q003eng
Which of the following is/are not (a) financial statement(s)? i) Bookkeeping ii) An income statement iii) A tax return iv) A balance sheet

A. (i) B. (i) and (iii) C. (i) and (iv) D. (ii) and (iii)

Answer: B

B2C01T1Q004eng
A person who studies the financial statements of a business and decides whether the business should continue to operate is A. the owner of the business. B. a potential investor. C. the auditor of the business. D. a teacher or student.

Answer: A

B2C01T1Q005eng
An income statement provides financial information on i) the amount of money spent by a business on its daily operations during a certain period. ii) the profit and loss made by a business during a certain period. iii) how much money a business owed to others on a certain date. iv) the total sales of a business during a certain period.

A. (iii) B. (i) and (ii) C.

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