Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

Which of the following financial statements shows the financial position of a business?

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. Balance sheet

  2. Income statement

  3. Cash flow statement

  4. Statement of changes in equity

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Correct Option: A

Financial statements are prepared mainly for ____________________.

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. Internal users of financial information

  2. External users of financial information

  3. Creditors of the business

  4. Managers of the business

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Correct Option: B

Which of the following external influences will not affect the directors in the preparation of the financial statements?

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. Legislation

  2. Regulatory requirements

  3. The Political environment

  4. Accounting requirements

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Correct Option: C

The primary responsibility for the adequacy of disclosure in the financial statements of a publicly held company rests with the _____________.

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. Partner assigned to the engagement

  2. Auditor in charge of field work

  3. Management of the company

  4. Securities & Exchange Commission

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Correct Option: C

The responsibility for the preparation of the financial statements and the accompanying footnotes belongs to ____________.

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. both management and the auditor equally

  2. management for the statements and the auditor for the notes

  3. the auditor

  4. the management

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Correct Option: D

The expired portion of capital expenditure shown in the financial statement is _________.

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. an income

  2. an expense

  3. an asset

  4. a liability

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Correct Option: B

For a proprietor following are not included in final accounts.

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. Trading account

  2. Profit and loss account

  3. Balance sheet

  4. None of the above

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Correct Option: D

The responsibility for the preparation of the financial statements and the accompanying footholes belongs to_________.

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. both management and the auditor equally

  2. management for the statements and the auditor for the notes

  3. the auditor

  4. management

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Correct Option: D

Primary responsibility for the adequacy of financial statement disclosures rest with the____________.

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. auditor

  2. management

  3. auditor's staff

  4. central Government

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Correct Option: B
Explanation:

The primary responsibility for the adequacy of disclosure in the financial statements of a company rests with the management. Management is the one who communicates with the outside world. It acts as a link between business and outside world. So primary responsibility lies with the management.  

Which is a part of financial statements?

book keeping and accountancy accounting equation and business transactions introduction to final accounts meaning, objectives and importance of final accounts meaning, objectives, importance and preparation of final accounts

  1. Balance sheet

  2. Book keeping

  3. Debit & Credit

  4. All of the above

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Correct Option: B
Explanation:

There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time.