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- 1. Multiple Choice
The purpose of accounting is to....
communicate information to interested users so that they can make informed decisions
communicate financial and non-financial information to interested users so that they can make informed decisions
communicate non-financial information to interested users so that they can make informed decisions
- 2. Multiple Choice
An Asset is...
An asset is a resource currently owned and controlled by a business as a result of a past transaction
An asset is a resource owned by a business as a result of a past transaction
An asset is something that costs money
- 3. Multiple Choice
Which of the following is an example of an asset?
Vehicle
Electricity
Mortgage
- 4. Multiple Choice
A liability is...
obligation of a business as a result of a past transaction
Something a business has to pay because of a past event
current obligation of a business as a result of a past transaction
- 5. Multiple Choice
Which of the following is an example of a liability?
Loan
Building
Sales
Accounts receivable
- 6. Multiple Choice
An Expense is...
An expense is defined as a decrease in assets which can be a distribution to the owner
An expense is defined as an increase in assets which can be a distribution to the owner
An expense is defined as a decrease in assets which is not a distribution to the owner
- 7. Multiple Choice
Which of the following is an example of an expense?
Machinery
Bank
Petrol
- 8. Multiple Choice
Monetary measurement can be described as
items that can be given a money value are to be recorded in New Zealand Dollars
items that can be given a money value are to be recorded in the currency of the country they have been bought from
- 9. Multiple Choice
The Accounting Entity means...
the business is a separate accounting entity from its owner.
the business is not a separate accounting entity from its owner.
the owner has permission to takes finance from the business and spend it on personal expenses
- 10. Multiple Choice
Which of the following is an example of Income
Sales
Mortgage
Equipment
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