Accounting_Multiple_Choice_Question_and_ANSWERS. ( ANSWERS AVAILABLE AT THE LAST PAGE)

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Question 1 The following statements relate to the nature and function of accounting: 1. (i) Financial information is required only by undertakings aiming to maximize profits. 2. (ii) An acc... ounting entity is an independently existing economic unit, the financial transactions of which must be dealt with separately from those of any other unit. 3. (iii) Management accounting deals with the reporting of the financial achievements of an entity as a whole. 4. (iv) The financial position of an undertaking is best reflected by the bank statement. 5. (v) With the arrival of the computer no amendment of the theory of accountancy was necessary. 6. (vi) All liabilities redeemable within one year must be treated as current liabilities. Which one of the following groups correctly reflects all the statements that are  true? 1. (i) (iii) (v) 2. (ii) (iv) (vi) 3. (i) (v) (vi) 4. (ii) (v) (vi) 5. None of the above Question 2 How many of the following statements are correct? 1. (i) Communication of financial information is known as reporting. 2. (ii) The more financial statements represent the subjective opinion of management, the more useful the information to the user. 3. (iii) The application of the concept of [Show More]

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