Atrills Accounting for Business Students 1st
Australian Edition Atrill McLaney - Test Bank
Chapter (1 to 14)
,Content: _
Chapter 1 Introduction to accounting
Chapter 2 Measuring and reporting financial position
Chapter 3 Measuring and reporting financial performance
Chapter 4 Recording transactions— the journal and ledger accounts
Chapter 5 Accounting systems and internal control
Chapter 6 Introduction to limited companies
Chapter 7 Regulatory framework for companies
Chapter 8 Measuring and reporting cash flows
Chapter 9 Corporate social responsibility and sustainability accounting
Chapter 10 Analysis and interpretation of financial statements
Chapter 11 Cost-volume-profit analysis and relevant costing
Chapter 12 Full costing
Chapter 13 Planning and budgeting
Chapter 14 Capital investment decisions
,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
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
Australian Edition Atrill McLaney - Test Bank
Chapter (1 to 14)
,Content: _
Chapter 1 Introduction to accounting
Chapter 2 Measuring and reporting financial position
Chapter 3 Measuring and reporting financial performance
Chapter 4 Recording transactions— the journal and ledger accounts
Chapter 5 Accounting systems and internal control
Chapter 6 Introduction to limited companies
Chapter 7 Regulatory framework for companies
Chapter 8 Measuring and reporting cash flows
Chapter 9 Corporate social responsibility and sustainability accounting
Chapter 10 Analysis and interpretation of financial statements
Chapter 11 Cost-volume-profit analysis and relevant costing
Chapter 12 Full costing
Chapter 13 Planning and budgeting
Chapter 14 Capital investment decisions
,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
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
