Accounting Terminology
Accounting Ethics
Accounting Users
Careers in Accounting
Bonus Points
100

Accounting is:

(a) recording anything that happens in a business.

(b) recording the transactions of a business.

(c) recording, analyzing and interpreting the business' transactions.

(d) recording, summarizing, analyzing and interpreting the business' transactions.

(d) Accounting is recording, summarizing, analyzing and interpreting the business' transactions. 

100

Discuss what you understand are ethical principles.

Ethical principles provide a moral compass for individuals and businesses, guiding their decisions and actions.

100

What are the two main categories of people who use accounting information to make decisions?

The two main categories of people who use accounting information are:

1. Internal users

2. External users

100

Why is accounting necessary in an organization?

(A) It is required by law

(B) To help the government

(C) To report on financial data

(D) To have enough employees

(C) To report on financial data

100

Resources owned by the business are known as:

(A) Assets

(B) Capital

(C) Expenses

(D) Liabilities

(A) Assets

200

The recording of the transactions in the accounting books of a business is called:

(A) accounting

(B) book-keeping

(C) liabilities

(D) resources

(B) book-keeping

200

Name the five fundamental ethical principles issued by the International Ethics Standards Board for Accountants (IESBA).

1. Integrity

2. Objectivity

3. Professional Competence and Due Care

4. Confidentiality

5. Professional Behaviour

200

List Five users of accounting information.

Owner/Manager

Employees

Investors

Creditors(Bank etc.)

Government agencies

Customers

Suppliers


200

All of the following are entry levels jobs for those without experience or qualifications except for: 

(A) Accounts clerk

(B) Bookkeeper

(C) Auditor

(D) Auditing clerk

(C) Auditor

200

Give two factors that influence ethical views.

Some factors which influence ethical views are:

1. Culture

2. Law

3. Consequences

4. Code of ethics

300

The purposes of preparing accounting documents and financial statements are to: 

I. show information of the resources of a business.

II. show who has claims on the business' resources

III. help users of financial information make decisions about the business.

(A) I and II

(B) I and III

(C) II and III

(D) I, II and III

(D) I, II and III

300

Marlon Ettiene prepared the financial statement for BrownTown Hardware. He is of the view that the statements should show more information about the transactions that are important to the owners than simply following accounting principles. His view is against the ethical principle in accounting of

(A) Integrity

(B) Objectivity

(C) Confidentiality

(D) Professional Competence

(B) Objectivity

300

Which lists represents both internal and external users of financials statements?

(A) Banks, government and investors

(B) Creditors, government and managers

(C) Creditors, banks and investors

(D) Suppliers, investors and banks

(B) Creditors, government and managers

300

Complete the following careers for employees with experience and a degree:

(A) F_ _ _ _ _ _ _ _ Advisor

(B) A _ _ _ _ _ _

(C) F _ _ _ _ _ _ _ Accountant

(D) C _ _ _ _ _ _ _ _ _

(A) Financial Advisor

(B) Auditor

(C) Forensic Accountant

(D) Consultant

300

Which of the following ensures that accountants use the same principles and methods of recording from year to year within a company?

(A) Accrual

(B) Prudence

(C) Consistency

(D) Separate entity

(C) Consistency

400

What are the two important financial documents that a business needs to produce?

The two important financial documents that a business need to produce are: 

1. the trading and profit and loss account (income statement)

2. the statement of financial position (balance sheet)



400
John Dough, the accountant, does not lock unused cheques away securely, leaves cheques on his desk incomplete and accessible by other employees, and prepares reports two months after the month has passed. Which of the following describes John's behaviour?

(A) Lack of objectivity

(B) Lack of confidentiality

(C) Unprofessional behaviour

(D) Unprofessional competence

(D) Unprofessional competence- John Dough's behavior demonstrates a lack of competence in his role as an accountant. His actions, such as leaving cheques unsecured and preparing reports late, indicate a failure to adhere to professional standards and practices. While he may have the technical skills to be an accountant, his unprofessional behavior undermines his credibility and effectiveness. 

400

Which accounting user is correctly matched with its need?

(A) Banker- to determine taxes to charge the business

(B) Government- to find out if the business can repay a loan

(C) Supplier- to find out if he should invest capital in the business

(D) Owner- to determine the profit of the business over the financial period

(D) Owner- to determine the profit of the business over the financial period.

400

Complete the following:

You may have careers in the field of accounting in areas such as:

(A) B _ _ _ _ _ _

(B) M _ _ _ _ _ _ _ _ _ 

(C) I _ _ _ _ _ _ _ _

(D) E _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

(A) Banking

(B) Management

(C) Insurance

(D) Entrepreneurship

400

It is the end of Tiffany's financial year. She has total assets of $5000 and capital of $3600. How much were her liabilities?

(A) $8,600

(B) $5,000

(C) $1,400

(D) $3,600

Assets= Liabilities + Capital

Liabilities= Assets- Capital

$5,000 - $3,600

(C) $1,400

500

State briefly the importance of good financial control to the owners of a business.

Good financial control is important to the owners of a business because it helps them to generate revenues, minimize expenses and make informed decisions which would allow for a profitable and successful business venture.

500

A cashier at a leading private high school, responsible for collecting school fees from students, uses the fees from time to time to loan to employees, charging the employees 10% of the loan. The cashier hopes the employees repay quickly so that the missing funds will not be noticed. Some of the employees have not been repaying the loans and the manager has now asked the cashier to account for the shortages in the cash. Which of the following has the cashier been committing? Which of the following has the cashier been committing?

(A) Fraud

(B) Tax evasion 

(C)Theft

(D) Errors

(A) Fraud

500

Which of the following statements is NOT a need of a user of accounting information?

(A) To determine whether to invest further

(B) To determine the profitability of the business

(C) To find out the number of owners in the business

(D) To add to the country's Gross Domestic Product (GDP)

(C) To find out the number of owners in the business

500
In which of the following industries can people who are trained and skilled in accounting be employed?

I.   Banking

II.  Insurance

III. Construction

(A) I and II

(B) I and III

(C) II and III

(D) I, II and III

(D) I, II and III - All industries use cash in their business. Therefore, people trained and skilled in accounting are needed in all of them.

500

Give 5 potential consequences of unethical behavior in accounting.

1. Termination of employment 

2.Lose of trust and integrity

3. Disciplinary action by the professional body 

4. Prosecution leading to fines, imprisonment, and a criminal record (inability to gain further employment) 

5. Lawsuits 

6. Application for future financial loans rejected.