Nature and Significance of Bookkeeping and Accounting
Accounts · 50 practice questions
Development of accounting, including its branches; objectives of bookkeeping and accounting; users and characteristics of accounting information; principles, concepts and conventions of accounting (nature, significance, application); the role of accounting records and information.
- Differentiate between bookkeeping and accounting.
- Understand the historical background of bookkeeping and accounting.
- Apply the right principles, concepts and conventions to solve accounting problems.
- Understand the role of accounting information in decision making.
- Identify the branches of accounting (e.g. Cost, Management, Auditing, Financial, Forensic, Social and Environmental, Government Accounting, and Taxation).
Try a few questions
- Practice question 1
Potential investors, as users of accounting information, specifically assess past financial performance as one indicator of
- A.no particular indicator of any kind, despite assessing past performance
- B.a factor entirely unrelated to likely future returns of any kind
- C.the exact personal character of the business's own employees
- D.likely future returns
Show the answer
D. likely future returns
Potential investors specifically assess past financial performance as one indicator of likely future returns.
- Practice question 2
Taxation, a branch of accounting, specifically deals with computing and advising on a business's or individual's
- A.manufacturing costs exclusively, with no reference to tax liabilities
- B.tax liabilities
- C.a factor entirely unrelated to tax liabilities of any kind
- D.day-to-day cash transactions exclusively, with no reference to tax liabilities
Show the answer
B. tax liabilities
Taxation, a branch of accounting, specifically deals with computing and advising on tax liabilities.
- Practice question 3
Management accounting, a branch of accounting, specifically provides information primarily intended to
- A.support internal decision-making by managers
- B.comply with government taxation requirements exclusively
- C.satisfy the reporting needs of external shareholders exclusively
- D.a factor entirely unrelated to internal decision-making of any kind
Show the answer
A. support internal decision-making by managers
Management accounting specifically provides information primarily intended to support internal decision-making by managers.
More UTME Accounts topics
- Principles of Double Entry
- Ethics in Accounting
- Cash Book
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Control Accounts and Self-Balancing Ledgers
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Accounts of Not-For-Profit-Making Organizations
- Departmental Accounts
- Branch Accounts
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