LESSON 3 (Multiple Choice, Identification)

Question 1

art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the results thereof.

Answer 1

Accounting

Question 2

writing on the books or records of the business
transactions or events. This is technically referred to as bookkeeping.

Answer 2

RECORDING

Question 3

sorting or the grouping of similar items under the
same names.

Answer 3

CLASSIFYING

Question 4

It is grouping the details of the data in the accounting
records periodically preparatory to the submission of reports to management.

Answer 4

SUMMARIZING

Question 5

It is preparing additional explanatory reports required for further interpretation for the guidance of management.

Answer 5

INTERPRETING

Question 6

possess trust, reliability and confidentiality as well as strong organization and communication skills.

A. Accounting
B. Bookkeeping

Answer 6

A. Accounting

Question 7

produce the vital reports that keep management updated on the financial condition of their company.

A. Accounting
B. Bookkeeping

Answer 7

B. Bookkeeping

Question 8

uses the accounting system designed by
accountants to record business transactions.

A. Accounting
B. Bookkeeping

Answer 8

B. Bookkeeping

Question 9

focus on analyzing and
interpreting information.

A. Accounting
B. Bookkeeping

Answer 9

A. Accounting

Question 10

challenged to record routine money transactions, to reconcile accounts and to locate misguided transactions, they also must be able to paint a picture – both verbally and on paper – of all the activities within their assigned area of responsibility.

A. Accounting
B. Bookkeeping

Answer 10

B. Bookkeeping

Question 11

comprises of rules, principles, concepts, conventions and standards. All these form body of knowledge which has recognition all over the world. It establishes relationship of cause and effect.

A. Accounting as science
B. Accounting as art

Answer 11

A. Accounting as science

Question 12

numerous pictures you can draw from the same numbers. Recording financial in a book, classifying in desired categories and summarizing the information for presentation in a suitable manner to the concerned person for their benefit. It is the application of knowledge comprising
of some accepted theories and rules.

A. Accounting as science
B. Accounting as art

Answer 12

B. Accounting as art

Question 13

accounting skills should be taught as would any trade, and that a legalistic approach to accounting is warranted.

A. Accounting as science
B. Accounting as art

Answer 13

B. Accounting as art

Question 14

B. Accounting as art