ACC 101 CBT Practice For FUOYE Students

1. The process of grouping transactions of a similar nature under one head is called:

2. Management accounting information is mainly prepared for ________.

3. The book of original entry is known as the ________.

4. In the accounting cycle, what usually follows the recording of transactions in the journal?

5. Assets are best described as ________.

6. The primary objective of accounting is to provide information for ________.

7. Liabilities represent ________.

8. Which of the following is NOT a main feature of the nature of accounting?

9. Accounting is often referred to as the “language of business” because it:

10. Accounting helps in the protection of business assets by:

11. A budget is best defined as:

12. Accounting is regarded as a social science because it:

13. Posting refers to the transfer of entries from the ________.

14. Financial transactions must be expressed in what terms to be recorded in accounting?

15. A ledger is a book that contains ________.

16. The accounting equation is expressed as ________.

17. Which organization defined accounting as the “process of identifying, measuring, and communicating economic information”?

18. Which function of accounting explains the “why” and “how” of financial results?

19. Which of the following is NOT a user of accounting information?

20. The primary objective of accounting is to:

21. Which of the following is NOT a type of account?

22. External users who rely on accounting data to decide whether to buy or sell shares are:

23. Which of the following is an example of a business transaction?

24. Government agencies use accounting reports primarily for:

25. Accurate classification in accounting helps auditors to:

26. The “Art” aspect of accounting refers to the use of:

27. The primary objective of accounting is to provide information for ________.

28. Financial accounting mainly focuses on ________.

29. Which accounting standards ensure transparency and comparability in financial reporting?

30. “Summarizing” in the accounting cycle typically leads to the preparation of:

31. Income is best described as ________.

32. Expenses are costs incurred in order to ________.

33. Accounting can best be defined as the process of ________.

34. Proper classification of revenue and expenditure is essential for:

35. Capital in accounting refers to the ________.

36. Creditors or suppliers need accounting information mainly to:

37. Which of the following is classified as a current asset?

38. Internal users of accounting information include:

39. The double entry principle states that every transaction affects ________.

40. The main purpose of preparing financial statements is to ________.