MCQ Exam - Mid-Semester
Chapter 1: Introduction to accounting
Multiple Choice
1. Which of these is a decision relevant to the accounting function of an entity?
a. Whether debts can be repaid
b. Finding the most cost effective way to produce goods
c. The investment prospects of the entity
d. None of the above
e. All of the above
2. Under the Framework describes the qualitative characteristic of relevance as:
a. information that is of value to users in decision making.
b. information that can be classified.
c. information that can be recorded in accounting reports.
d. information that can be reliably measured.
e. information that is understandable
3. Which of these is not likely to be the responsibility of a bookkeeper?
a. Preparation of a bank reconciliation
b. Calculation and payment of wages
c. Selection of an accounting package to be used by the firm
d. Checking on a customer 's credit rating
e. All are likely to be the responsibility of a bookkeeper
4. The information about a customer that would be of most interest to a supplier is:
a. profit.
b. ability to pay off debts as they fall due.
c. annual dividends.
d. taxable income.
e. compliance with accounting standards.
5. The information that would be of most interest to an organisation 's production manager is:
a. continuity of orders for the factory.
b. ability to pay off debts as they fall due.
c. annual dividends.
d. taxable income.
e. compliance with accounting standards.
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6. The external user of accounting information is:
a. Purchasing officer.
b. Director of Research and Development.
c. Inventory clerk.
d. Customer.
e. None of the above.
7. The internal user of accounting information is:
a. Building maintenance manager.
b. Supplier.
c. Environmental lobby group.
d. Auditor from the Australian Tax Office.
e. A and B.
8. Which of these would not be considered an internal user of accounting information?
a. Sales representative of a company
b. Human resources manager
c. Chief
Multiple Choice
1. Which of these is a decision relevant to the accounting function of an entity?
a. Whether debts can be repaid
b. Finding the most cost effective way to produce goods
c. The investment prospects of the entity
d. None of the above
e. All of the above
2. Under the Framework describes the qualitative characteristic of relevance as:
a. information that is of value to users in decision making.
b. information that can be classified.
c. information that can be recorded in accounting reports.
d. information that can be reliably measured.
e. information that is understandable
3. Which of these is not likely to be the responsibility of a bookkeeper?
a. Preparation of a bank reconciliation
b. Calculation and payment of wages
c. Selection of an accounting package to be used by the firm
d. Checking on a customer 's credit rating
e. All are likely to be the responsibility of a bookkeeper
4. The information about a customer that would be of most interest to a supplier is:
a. profit.
b. ability to pay off debts as they fall due.
c. annual dividends.
d. taxable income.
e. compliance with accounting standards.
5. The information that would be of most interest to an organisation 's production manager is:
a. continuity of orders for the factory.
b. ability to pay off debts as they fall due.
c. annual dividends.
d. taxable income.
e. compliance with accounting standards.
1
6. The external user of accounting information is:
a. Purchasing officer.
b. Director of Research and Development.
c. Inventory clerk.
d. Customer.
e. None of the above.
7. The internal user of accounting information is:
a. Building maintenance manager.
b. Supplier.
c. Environmental lobby group.
d. Auditor from the Australian Tax Office.
e. A and B.
8. Which of these would not be considered an internal user of accounting information?
a. Sales representative of a company
b. Human resources manager
c. Chief