Accounting for Business Exam Bank
Course Introduction
Accounting for Business provides an introduction to the fundamental concepts and principles of accounting as they apply to modern business organizations. The course covers essential topics such as the accounting cycle, financial statement preparation and analysis, and the interpretation of financial information for decision-making. Students will explore how accounting data is used to plan, control, and evaluate business operations, gaining practical skills in recording transactions, managing budgets, and assessing organizational performance. By the end of the course, learners will understand the critical role accounting plays in supporting business strategy and ensuring organizational accountability.
Recommended Textbook
Atrills Accounting for Business Students 1st Australian Edition by Atrill McLaney
Available Study Resources on Quizplus
14 Chapters
893 Verified Questions
893 Flashcards
Source URL: https://quizplus.com/study-set/3519
Page 2
Chapter 1: Introduction to Accounting
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/69888
Sample Questions
Q1) Another name for the statement of comprehensive income is:
A)statement of financial position.
B)balance sheet.
C)statement of change in owners' equity.
D)statement of financial performance.
Answer: D
Q2) The planning role within a company is principally undertaken by: A)consultants.
B)managers.
C)shareholders.
D)lenders.
Answer: B
Q3) The goal of business in relation to profit is generally taken as:
A)profit maximisation.
B)profit planning.
C)profit generation.
D)profit stabilisation.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Measuring and Reporting Financial Position
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/69887
Sample Questions
Q1) Which of the following is regarded as a tangible asset?
A)Franchise
B)Goodwill
C)Long-term investment
D)Copyright
Answer: C
Q2) The recognition criteria for liabilities includes:
A)future obligation.
B)probability of occurrence.
C)reliability of measurement.
D)Both B and C.
Answer: D
Q3) The accounting convention that the objectivity principle provides support for is:
A)historic cost.
B)prudence (conservatism).
C)relevance.
D)accounting period.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Measuring and Reporting Financial Performance
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/69886
Sample Questions
Q1) The accounting principle underpinning the inventory valuation rule 'the lower of cost and net realisable value' is:
A)prudence (conservatism).
B)historical cost.
C)matching costs with revenue.
D)going concern.
Answer: A
Q2) How are prepaid expenses classified in the statement of financial position?
A)Current asset
B)Non-current asset
C)Non-current liability
D)Current liability
Answer: A
Q3) Which statement best describes the way the reducing balance method charges depreciation?
A)Yearly depreciation is lower at the beginning of the asset's life.
B)Yearly depreciation is greater at the beginning of the asset's life.
C)Yearly depreciation is the same in each year of the asset's life.
D)Yearly depreciation expense is greater at the end of the asset's life.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Recording Transactionsthe Journal and Ledger Accounts
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/69885
Sample Questions
Q1) Doubtful debts provision is a contra asset account.
A)True
B)False
Q2) Your ledger accounts have the following balances: \(\begin{array}{|l|r|}
\hline \text { Cash } & 15,000 \\
\hline \text { Debtors } & 125,000 \\
\hline \text { Creditors } & 92,000 \\
\hline \text { Capital } & ? ? ? \\
\hline \text { Equipment } & 175,000 \\
\hline \text { Sales } & 289,000 \\
\hline \text { Inventory } & 42,000 \\
\hline \text { Drawings } & 22,000 \\
\hline \text { Expenses } & 48,000 \\
\hline \text { Cost of Sales } & 140,000 \\
\hline
\end{array}\) What is the balance of the Capital account?
A)$ 275 000
B)$ 138 000
C)$186 000
D)$243 000
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Accounting Systems and Internal Control
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/69884
Sample Questions
Q1) A sales book is used to record sales returns.
A)True
B)False
Q2) Which of the following is not an advantage of using a control account?
A)A control account provides a check and balance on the postings from the subsidiary records.
B)A control account contributes to internal control by allowing a different person to keep the control account than the person making the more detailed posting.
C)Balances from the control account are readily available.
D)Agreement between the control account and the ledger account guarantees accuracy in the ledger account.
Q3) The ledger containing revenue and expense accounts is the:
A)nominal ledger.
B)general ledger.
C)sales ledger.
D)purchases ledger.
Q4) Subsidiary records are not part of the double-entry accounting system.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Introduction to Limited Companies
Available Study Resources on Quizplus for this Chatper
64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/69883
Sample Questions
Q1) Which general standard of reporting must financial accounts prepared by companies under the Corporations Act 2001 meet?
A)Accurate
B)Satisfactory
C)True and fair
D)Beyond a reasonable doubt
Q2) Limited liability means:
A)the liability of shareholders for company debts is normally limited to the amount they have paid for their shares.
B)the liability of directors for company debts is limited.
C)if the company fails, the creditors may have to bear greater losses than if they were dealing with a non-company.
D)Both A and C
Q3) Which of the following is not a reason for a company making a bonus issue of shares?
A)To use cash.
B)As a signal to the market of the company's confidence in its future.
C)To reduce its share price when it has become too high.
D)None of the above, i.e., all are reasons for making a bonus issue
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Regulatory Framework for Companies
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/69882
Sample Questions
Q1) The annual report of a public company must contain:
A)an audit report.
B)a directors' declaration.
C)a directors' report.
D)All of the above
Q2) Which of the following is not true about segmented financial reports?
A)Under-performing segments will be revealed.
B)Risks and profitability of individual segments are identified.
C)Segments that have been sold will be identified and can be evaluated.
D)Investors can evaluate the company as a whole.
Q3) For information in financial reports to be material, it must:
A)be prepared on a timely basis.
B)affect the discharge of accountability by management of the reporting entity.
C)influence the decisions of users of that information.
D)Both B and C
Q4) Which of the following is included in the statement of changes in equity?
A)Share issues
B)Changes to reserves
C)Changes to retained profits
D)All of the above
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Measuring and Reporting Cash Flows
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/69881
Sample Questions
Q1) Which of the following statements is not true?
A)If a firm is operating profitably, it will automatically have plenty of cash.
B)The concept of cash underpinning the statement of cash flows is 'cash and cash equivalents'.
C)A bank overdraft is an example of a 'cash equivalent'.
D)Cash is the pre-eminent asset as it is the medium with which claims are normally settled.
Q2) The purpose of the statement of cash flows is to provide information on:
A)profits.
B)net worth.
C)losses.
D)cash inflows and outflows.
Q3) Under accrual accounting, the receipt of cash from a trade debtor will:
A)have no impact on profit and increase cash.
B)increase profit and increase cash.
C)decrease profit and decrease cash.
D)none of the above.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Corporate Social Responsibility and Sustainability Accounting
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/69880
Sample Questions
Q1) Which of these is not claimed as an advantage of the balanced scorecard approach?
A)Overhead costs will become a smaller percentage of total costs.
B)More staff will have a better understanding of the big picture.
C)Continual feedback and review will occur.
D)Decisions will be based on fact.
Q2) Which statement about the effect of the Global Reporting Initiative (GRI)and strategic decision-making is not true?
A)The GRI broadens management perspectives.
B)Management must consider questions such as how the perception of the company can be improved or damaged in the longer term.
C)Strategic decision-making is less difficult than short-term decision-making as more options become available when looking to the longer-term.
D)SWOT analysis is an approach that can be applied to strategic decision-making.
Q3) Why do organisations find corporate social responsibility (CSR)such a challenge?
A)The public view of CSR continues to change
B)There is no real definition of CSR
C)There is no CSR 'checklist' for businesses to tick off
D)Both A and C
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Analysis and Interpretation of Financial Statements
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/69879
Sample Questions
Q1) Which ratios are specifically concerned with assessing the efficiency with which assets have been used by the business?
A)Liquidity ratios
B)Efficiency ratios
C)Gearing ratios
D)Investment ratios
Q2) Which of these is a factor that can influence the amount a company is prepared to distribute as dividends to its shareholders?
A)The availability of cash
B)Investors expectations
C)The need to retain funds within the business for future growth
D)All of the above
Q3) A firm has total assets of $800 000 and total liabilities of $200 000. If profit after tax and interest is $150 000, the return on shareholders' funds is:
A)25%
B)8%
C)12.5%
D)9%
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Costvolumeprofit Analysis and Relevant Costing
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/69878
Sample Questions
Q1) If sales revenue totals $84 000, selling price is $6 per unit, variable costs are $2.50 per unit and fixed costs are $48 000 per annum, the profit that will be earned is:
A)$13 714
B)$19 200
C)$1 000
D)$5 600
Q2) Selling price per unit less variable costs per unit is known as:
A)contribution margin.
B)direct cost.
C)avoidable cost.
D)All of the above
Q3) Wombat World is a small zoo displaying native animals. The entrance fee is $15 per person. Variable costs of running the zoo are $8 per visitor and fixed costs are $200 000 per annum. The number of visitors that would be needed to make a profit of $20 000 per annum is:
A)1 333
B)31 429
C)14 667
D)27 500
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Full Costing
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/69877
Sample Questions
Q1) The base for allocating overhead costs most commonly used in practice is:
A)direct labour cost.
B)direct labour hours.
C)machine hours.
D)units produced.
Q2) In general, in recent times compared to the past, overhead as a percentage of a firm's total costs:
A)has decreased.
B)has remained the same.
C)has increased.
D)Cannot tell
Q3) Refer to the table above. The management accountant at Oswald Ltd, wants to revise his estimates and use machine hours as the allocation base to determine the overhead recovery rate. The revised overhead recovery rate (rounded)per machine hour will be:
A)$4.88 per MH.
B)$9.00 per MH.
C)$7.38 per MH.
D)$8.75 per MH.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Planning and Budgeting
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/69876
Sample Questions
Q1) The Talent Agency had the following estimates for the six months ending 31 December 2018. \(\begin{array}{ll}
\text { Cash balance } 1.1 .15 \text { (Overdraft) } & (\$ 9,150) \\
\text { Cash receipts from commissions } & \$ 85,000 \\
\text { Cash payments for expenses } & 82,300 \\
\text { Proceeds from the sale of motor vehicle } & 6,500 \\
\text { Borrowing } & 5,000 \\
\text { Depreciation on equipment } & 2,600
\end{array}\) The estimated cash balance at 31 December 2018 is:
A)$3 450
B)$5 050
C)$3 950 (overdraft)
D)$2 100 (overdraft)
Q2) If the principal objective of a firm is to enhance wealth, the most important budget target to meet is:
A)bank balance.
B)sales.
C)profit.
D)production.
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/69875
Sample Questions
Q1) Which statement is true?
A)The 'internal rate of return' method assumes that cash reinvested in the course of the life of the project earns at the same rate as the project.
B)The 'net present value' method assumes that the reinvestment rate is at the cost of capital.
C)Both the 'internal rate of return' and the 'net present value' methods assume that the reinvestment rate is at the cost of capital.
D)Both A and B
Q2) When a new investment requires an increase in working capital (e.g., accounts receivable, inventory)the analysis should incorporate this by:
A)recording a cash outflow in Year 0 and a cash inflow at the end of the project.
B)recording a cash inflow at the end of the project.
C)evenly dividing the amount of working capital as a cash outflow for each year of the investment.
D)doing nothing as there is a nil impact on cash flows.
To view all questions and flashcards with answers, click on the resource link above. Page 16