100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Atrills Accounting for Business Students 1st Australian Edition Atrill McLaney - Test Bank £22.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Accounting For Business
  4.  
  5. Accounting For Business
  6.  
  7. Accounting for Business

Exam (elaborations)

Atrills Accounting for Business Students 1st Australian Edition Atrill McLaney - Test Bank
 20 views  0 purchase

Test Bank For Atrills Accounting for Business Students 1st Australian Edition Atrill McLaney Complete Test Bank

Preview 4 out of 292  pages

Document information

  • October 14, 2023
  • 292
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

All documents for this subject (1)

Seller

avatar-seller
ExamsExpert

Reviews received

Content preview

,Chapter 1
Introduction to accounting
Choose the one alternative that best completes the statement or answers the question.
1) Which of the following is the most important function of an accounting system?
A) Provide information for decision-making, planning and control
B) Keep employees from embezzling funds
C) Prepare accounting reports
D) Collect and record data
Answer: A
Difficulty: Moderate
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 8 Application of knowledge

2) The best description of the primary purpose of providing accounting information is:
A) to allow the preparation of a taxation return.
B) to assist users in making informed decisions.
C) to calculate the bank account balance.
D) to enable the financial statements to be prepared.
Answer: B
Difficulty: Basic
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 8 Application of knowledge

3) The stages of an accounting system are:
A) evaluation, processing, output.
B) identification, recording, analysis, reporting.
C) setting objectives, planning, analysis.
D) none of the above.
Answer: B
Difficulty: Complex
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 3 Analytical thinking

4) What are the four key qualities of accounting information?
A) Relevance, reliability, comparability and understandability
B) Identification, analysis, reliability and timeliness
C) Planning, control, comparability and analysis
D) Understandability, identification, analysis and relevance


Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd)
9781488616570/Atrill/Accounting for Business Students/1e

,Answer: A
Difficulty: Complex
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 8 Application of knowledge

5) The best explanation of relevance is:
A) ensuring the benefit of the information is greater than the cost of providing it.
B) ensuring that information is expressed as clearly as possible.
C) ensuring that information is useful for decision-making.
D) ensuring that information is free from bias.
Answer: C
Difficulty: Moderate
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 8 Application of knowledge

6) The quality of accounting information that requires items that are basically the same to be treated in
the same manner is:
A) relevance.
B) timeliness.
C) understandability.
D) comparability.
Answer: D
Difficulty: Moderate
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 8 Application of knowledge

7) When accounting information has the potential to change decision-making it is said to be:
A) consistent.
B) understandable.
C) material.
D) comparable.
Answer: C
Difficulty: Moderate
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 3 Analytical thinking

8) Which of these is a reason why achieving the maximum possible profit in a particular year may not be
in the best interests of a business?
A) Concentrating on the short-term may have detrimental effects in the long-term.
B) It may be achieved by causing environmental problems, which give the business a bad reputation.
C) If it is achieved with high-risk strategies, such as excessive reliance on borrowings, it could lead to


Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd)
9781488616570/Atrill/Accounting for Business Students/1e

, disaster in the longer term.
D) All of the above
Answer: D
Difficulty: Moderate
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 3 Analytical thinking

9) Which test determines if an item of accounting information is worthwhile collecting?
A) Cost test
B) Cost/benefit test
C) Worthwhile test
D) Validation test
Answer: B
Difficulty: Moderate
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 3 Analytical thinking

10) The characteristic of accounting information that requires financial reports to be expressed as clearly
as possible and to be capable of being understood by those they are addressed to, is known as:
A) understandability.
B) reliability.
C) cost versus benefit test.
D) relevance.
Answer: A
Difficulty: Moderate
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 1 Written and oral communication

11) The statement concerning the key qualities of accounting information that is untrue is:
A) the qualities are frequently in conflict.
B) relevant information may help to predict future events or confirm past events.
C) relevant information often contains a degree of subjectivity.
D) None of the statements is untrue, i.e., all are true statements.
Answer: D
Difficulty: Complex
Learning Objective: 1.1 Explain the nature and role of accounting.
Topic: Nature and role of accounting
AACSB: 3 Analytical thinking

12) Which of these is not one of the key qualities of accounting information?
A) Timeliness
B) Reliability


Copyright © 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd)
9781488616570/Atrill/Accounting for Business Students/1e

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £22.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£22.99
  • (0)
Add to cart
Added