Financial Management and AccountingScore1.00of 1

1. Financial accounting is for the interests of

1. Government

2. Employees

3. Suppliers

4. Investors and shareholders

Feedback:

Correct: Investors and shareholders depend mainly on accounting information supplied through financial accounts for making informed investment decisions.

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2. ‘Inflate the sales for the current year by advancing the sales from the following year.’ It is,

1. Creative accounting

2. Window dressing

Feedback:

Correct: It is an accounts manipulation technique to boost the image of the organization.

3. Kickback

4. None of the above

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3. Funds brought in to start a business by the owner or group of owners is called,

1. Revenue

2. Debt

3. Capital

Feedback:

Correct: Capital is the amount invested by the owner or owners while starting a business.

4. Asset

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4. Financial statement of business at any targeted time in terms of assets and liabilities,

1. Bookkeeping

2. Income and expenses account

3. Profit and loss account

4. Balance sheet

Feedback:

Correct: Balance sheet provides a picture of assets and liabilities at the end of a particular time period.

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5. An art and science of recording business transactions is called _________.

Accounting

Recording

Book keeping

Feedback:

Correct: Book keeping is an art as well as science of recording business transactions systematically.

Transaction recording

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6. A person or entity who has an interest in the economic performance of a business is a __________.

Stakeholder

Feedback:

Correct: Stakeholder is a person or an entity who is interested in economic health of the company.

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