students zone

Chapter 1 - Muliple-choice questions

1. Which of the following activities is normally the responsibility of a financial accountant:
   1.   ?    calculating the selling prices of goods and services
   2.   ?    calculating the cost of a project
   3.   ?    identifying the financial implications of investing in alternative types of equipment
   4.   ?    keeping proper accounting records of transactions
2. A management accountant is normally most concerned with:
   1.   ?    ensuring that an organisation pays the correct amount of tax
   2.   ?    providing information that will be of use to managers
   3.   ?    auditing the books of an organisation
   4.   ?    keeping financial records of transactions
3. To form a partnership you must:
   1.   ?    have at least two partners
   2.   ?    have at least four partners
   3.   ?    register the business with the Department of Trade and Industry
   4.   ?    make your financial results public
4. A limited company offers the advantage of:
   1.   ?    being very easy to establish
   2.   ?    complete financial secrecy
   3.   ?    no legal formalities to meet
   4.   ?    limited financial risk to its owners
5. An advantage a private limited company has compared to a public limited company is that it:
   1.   ?    has to comply with fewer regulations
   2.   ?    does not have to keep accounting records
   3.   ?    does not have to disclose financial information to the public
   4.   ?    can advertise its shares for sale to the public
6. Limited liability means:
   1.   ?    a restriction on the number of owners
   2.   ?    the business is highly regulated
   3.   ?    difficult to raise capital
   4.   ?    owners risk losing their investment if the business fails