[EFA] Financial accounting PDF

Preview

Summary

N/G...

Description

Introduction to Accounting multiple choices 1) The accounting process involves in recording: A) Quantifiable economic event B) Non quantifiable economic event C) All of them D) None of them 2) In accounting an Economic event is referred to as: A) Cash B) Bank statement C) Transaction D) Exchange of money 3) Identify the correct sequence of accounting process A) Communicating→Recording→Identifying B) Recording→Communicating→Identifying C) Identifying→communicating→recording D) Identifying→recording→communicating 4) Bookkeeping mainly concerns with which part of accounting process? A) Analysing B) Preparing financial statements C) Recording financial information D) Auditing the books of accounts 5) Financial accounting provides financial information to all of the following external users except: A) Government agencies B) investors C) Creditors D) Managers => internal 6) For which step of accounting process the accountants of business entity prepare financial statements? A) Identification of economic event B) Communication of financial information C) Recording financial information D) Making decisions about business 7) Keeping the log of financial information in books of original entries is called A) Recording B) summarizing C) Grouping D) Processing 8) Auditing is what? A) Reporting the financial information 1

B) Examination of financial statements C) Preparation financial statements D) maintaining the ledger records 9) Which of the following is the external user of financial statements? A) Manager of the business B) CEO of the business C) Creditor of the business D) Controller of the business 10) Which of the following is the internal user of financial statements? A) Creditor of the business B) Government agency C) Shareholder of the business D) Manager of the business 11) _________ is the first phase of accounting cycle A) Identifying an economic event or transaction B) Preparing journals C) Posting entries to ledger accounts D) Making decisions about business 12) Financial statements differ from management account because A) They are mainly prepared for external users of financial information B) They are more complex and hard to prepare C) They are the summary of accounting data D) They are prepared on basis of actual concept 13) ________ is a separate legal entity that Total capital can be divided in many shares A) Partnership B) Sole proprietorship C) Company D) Non-profit organization 14) An asset posses which of the following? A) Future economic benefits for the business B) All kind of benefits for the business C) Expenses for the business D) Merits and Demerits for the business 15) Liabilities are which of the following? A) Resources B) Obligations C) Future benefits D) Expenses 16) ________ is the gross inflow of economic benefits A) Assets B) Liabilities C) Income D) Expenses 2

17) The gross decrease in economic benefits for the business are what? A) Expenses B) Obligations C) Creditors D) Income or gain 18) An asset must be _______ by the business to be shown as an asset in its "balance sheet" A) Possessed B) Owned C) Controlled D) Used 19) Liability are arisen from which of the following events? A) Present event B) Future event C) Past event D) Non of them 20) Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting? A) Identifying transactions B) Preparing "T Accounts" C) Preparing financial statements D) Preparing trial balances 21) Which is the most important characteristic that all assets of a business have? A) Long life of assets B) Value of assets C) Intangible nature of assets D) Future economic benefits 22) What is the basic accounting equation? A) Capital+Liabilities=Assets B) Assets+ liabilities =Capital C) Capital+assets=liabilities D) Liabilities+Capital 23) Which of the following is a liability? A) Cash B) Equipment C) Debtors => con nợ D) Creditors => chủ nợ 24) What is equity? A) Cash from the business B) liability of a business C) Owner's claim on total assets => phần mà chủ sở hữu tài trợ trong tổng TS D) Owner's claim on total liabilities 25) Identify the asset from the following 3

A) B) C) D)

Cash and cash equivalent Creditors Notes payable Bank loan

26) _______ the withdrawal of cash and goods by the owner of the business for his/her personal use A) Depreciation B) Drawings C) Outflow of cash D) Appreciation 27) Net loss occurs when A) Expenses are greater than Income B) Expenses are less than Income C) Expenses=Income D) Liabilities are greater than income 28) Double entry implies that A) Recording entries in journal B) Recoding entries in Ledger account C) Recording two aspects of every transaction D) Recording every transaction in books 29) Identify the nominal account (temporary account – tài khoản tạm thời, cuối kì sẽ kết chuyển hết, không còn số dư nữa) A) Machinery account B) Building account C) Creditors account D) Rent expenses account 30) Which of the following accounts can be classified as a real account? (Permanent account) A) Rent expenses account B) Rent income account C) insurance expenses account D) Cash account

True/false questions 1. Accounting is an information and measurement system that identifies, records, and communicates financial information to users T 2. Bookkeeping is the same as accounting F 3. Bookkeeping is the recording of transactions and events and is only part of accounting T 4. Accounting is one way important information about businesses is reported to decision makers T 5. Internal reports are subject to the same rules as external reports as consistency is important and makes information more useful to the user F

4

6. Accounting software packages reduce the time, effort and cost of record keeping T 7. Internal auditors assess an employer's procedures and controls over recordkeeping activities and physical control of a firm's assets T 8. Internal controls are procedures designed to protect company property, ensure reliable reports, promote efficiency and ensure employees follow company policies T 9. Accounting information systems collect, process and report information to decision makers T 10. Managerial accounting is an area of accounting that provides internal reports to assist in the decisionmaking needs of internal users T 11. The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities. T 12. Opportunities in accounting include auditing, management consulting, and tax planning. T 13. The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles. T 14. Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements. T 15. Generally accepted accounting principles were established to improve conformity in financial reporting by making information relevant, reliable and comparable T 16. US accounting practices are viewed as rule-based as financial statements are prepared using technical, specific and detailed rules. T 17. External auditors examine financial statements to determine if they are prepared according to generally accepted accounting principles. T 18. External users include lenders, shareholders, customers, and regulators. T 19. Internal users include lenders, shareholders, brokers and managers. F 20. Identifying the proper ethical path is easy. F 21. Ethics are not important to decision making in accounting. F 22. Guidelines for ethical decision making requires recognition of an ethical concern and consideration of good and bad consequences. T 23. Good ethics are good business. T 24. State ethics codes require CPAs who audit financial statements to disclose areas where those statements fail to comply with GAAP. T 25. Public accounting provides the majority of the career opportunities. T 26. The majority of accounting career opportunities are in the private sector. F 5

27. Understanding generally accepted accounting principles is not necessary to use and interpret financial statements. F 28. The Sarbanes-Oxley Act requires issuers of securities to disclose the adoption of an ethics code. T 29. The Securities and Exchange Commission (SEC) is an arm of the federal government that establishes reporting requirements for companies that issue stock to the public. T 30. The Financial Accounting Board is the group that establishes reporting requirements for companies that issue stock to the public. T 31. A limited liability company is treated like a corporation for liability and tax purposes. F 32. Separate legal status means that a corporation can conduct business with the rights, duties and responsibilities as a person. T 33. Separate legal status means that owners, called shareholders are not personally liable for corporate acts and debts. F 34. Three forms of business include service providers, wholesalers and retailers. F

Translate into Vietnamese When deciding on a future career a lot of people don't give accountancy a second thought. Khi quyết định nghề nghiệp cho tương lai, nhiều người sẽ không nghĩ tới việc làm kế toán. Most people don't realize how varied the world of accounting is and in fact it is often seen as boring. Phần lớn mọi người không nhận ra sự đa dạng của thế giới kế toán và thực tế là nó thường được cho là khá chán. The truth is that accounting is the backbone of any organization and offers a wide number of attractive careers within it. Kế toán là xương sống của mọi tổ chức và nó mang lại rất nhiều cơ hội nghề nghiệp hấp dẫn. Below you will hear about just some of the more common careers in the field of accountancy, there are of course many more, but we don't have time to talk about them all. Dưới đây, bạn sẽ được biết về những nghề nghiệp thông dụng nhất trong lĩnh vực kế toán, tất nhiên là nó có nhiều hơn nhưng chúng ta không có đủ thời gian để nói hết. When we consider the accounts team within a company, we generally think about clerks, both sales ledger clerks and purchase ledger clerks recording the financial information from all transactions the company makes. Khi chúng ta xem xét phòng kế toán trong 1 đơn vị, chúng ta thường nghĩ về các kế toán viên, cả kế toán bán hàng và kế toán mua hàng ghi nhận tất cả các nghiệp vụ phát sinh của công ty. Other roles include the payroll clerk responsible for processing staff salaries and the tax which occurs from them. Những vai trò khác bao gồm kế toán tiền lương, chịu trách nhiệm về lương thưởng của nhân viên là những nghĩa vụ về thuế phát sinh liên quan. Higher up the hierarchy we have the management accountant who finalizes the accounts and prepares the annual financial statements. The people doing these jobs make sure that the 6

directors or owners of the company always know its true financial position. Những người làm công việc này đảm bảo Giám đốc và các chủ sở hữu của công ty luôn biết được thực trạng tài chính thực tế của doanh nghiệp. However, accounting is more than just reporting financial data. A good accounts team actually works to save the company money by minimizing the tax payable and delaying payments so companies can earn interest from their banks. Tuy nhiên, việc kế toán không chỉ bao gồm việc ghi chép các dữ liệu tài chính. Một đội kế toán giỏi có thể giúp tiết kiện tiền cho doanh nghiệp bằng cách giảm thiểu các khoản thuế phải nộp và kéo dài thời hạn các khoản phải trả nhằm giúp công ty có thể kiếm lời từ ngân hàng. These job roles are not so clear in smaller accounting practices, where the accounting staff often need to perform various tasks from meeting clients to helping with loan applications. Often the majority of the work in these smaller practices is done by bookkeepers. Generally, the owner of the practice is the most senior accountant and is usually a chartered accountant, which means that their signature is accepted on the financial statements. The job opportunities for accountants don't stop there: auditors are the police of the accounting world and when they are called into a company it is their job to ensure that the accounts were done in the correct way and that everything was accounted for. The most feared of these auditors are the government auditors who are sent to companies suspected of somehow breaking the rules. Working as an auditor is very different from other accountancy work as there is no routine; you work in many locations and have contact with many people. Although, you should be thickskinned as often the accounting staff in companies do not like the idea of being audited. Cơ hội nghề nghiệp không dừng lại ở đó: kiểm toán viên là cảnh sát trong thế giới kế toán và …KTV đáng sợ nhất là KTV nhà nước, người mà được điều tới các công ty… Career progression within accountancy often results from a specialist knowledge in a particular area, tax advisors are able to help their clients lower their tax bill thanks to their in-depth knowledge of taxation law and specifically what a client can off-set against tax. As you can see the world of accountancy offers various careers, but in all of these areas there are some qualities that a potential accountant should have. Firstly, as accounting is the process of collecting and classifying financial data all accountants need to be perfectionists unwilling to accept anything less than an exact result. Also, as accountants deal with large volumes of data they need to have a good eye for detail and a real love of numbers. A talented accountant will also be able to advise their clients on the best course of action to take so as to save money and at the same time stay within the local accounting standards. Accountants have to follow very strict rules and codes of conduct in order to make sure that they do everything in a legal way. If an accountant breaks these rules they could face severe 7

punishment, but some accountants practice creative accounting to get around rules without breaking them. Confidentiality is obligatory for all people working with accounts as the financial data could be very sensitive. Whether working in the public or private sector, accountants can expect to earn very good salaries and also gain valuable knowledge on topics like income tax, value added tax (VAT) and pension schemes which can help them in their life outside of work. What's more, as accounting is such an important part of a company's success there will always be a demand for good accountants. After reading this text I hope that you will appreciate the complexity and the variety of accounting and the value accountants serve in an organization. So the next time you hear someone say that accounting is dull, please correct them. Accounting is about truth and money, and there is nothing dull about that!

8...