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1 | |
The role of financial accounting is primarily to
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| | A) | ensure that a company does not pay too much corporation tax
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| | B) | support the strategic management of the company
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| | C) | assist the company in meeting its legal and financial reporting requirements
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| | D) | manage and control corporate funds
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2 | |
Which of the following should financial information not be?
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| | A) | reliable
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| | B) | accurate
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| | C) | inconsistent
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| | D) | timely
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3 | |
A sole trader
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| | A) | employs one person, has limited liability and does not need to have its accounts audited
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| | B) | employs many persons, has unlimited liability and needs to have its accounts audited
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| | C) | employs one person, has limited liability and needs to have its accounts audited
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| | D) | employs many persons, has unlimited liability and does not need to have its accounts audited
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4 | |
A private limited company (Ltd)
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| | A) | may offer its shares for sale to the public, has limited liability and does not need to have its accounts audited
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| | B) | may not offer its shares for sale to the public, has limited liability and needs to have its accounts audited
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| | C) | may not offer its shares for sale to the public, has limited liability and does not need to have its accounts audited
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| | D) | may offer its shares for sale to the public, has unlimited liability and does not need to have its accounts audited
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5 | |
A public limited company (plc)
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| | A) | employs many persons, has unlimited liability and does not need to have its accounts audited
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| | B) | may offer its shares for sale to the public, has limited liability and needs to have its accounts audited
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| | C) | employs many persons, has unlimited liability and needs to have its accounts audited
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| | D) | may offer its shares for sale to the public, has limited liability and does not need to have its accounts audited
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6 | |
A partnership
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| | A) | is a separate legal entity
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| | B) | does not entitle all partners to share in the running of the business
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| | C) | is formed by two or more persons
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| | D) | is obliged to make accounting information available to the public
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7 | |
Which of the following is not one of the purposes of accounting?
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| | A) | to determine whether a business is doing well or badly
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| | B) | to assist with evasion of tax
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| | C) | to identify which business problems should be looked at
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| | D) | to determine the best alternative for doing a job
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8 | |
The framework of accounting does not include one of the following. Which one?
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| | A) | accounting standards and accounting concepts
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| | B) | Statement of Principles
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| | C) | Financial Services Act 1986
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| | D) | Companies Act 1985/1989
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9 | |
Which of the following is not one of the key financial statements required to be published by a UK plc?
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| | A) | cash flow statement
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| | B) | VAT report
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| | C) | balance sheet
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| | D) | profit and loss account
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10 | |
UK limited companies are required to produce annual reports and accounts for
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| | A) | customers and suppliers
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| | B) | employees
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| | C) | shareholders and the Registrar of Companies
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| | D) | the bank
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2003 A McGraw-Hill Online Learning Centre