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Assignment (1) Fin ACC

1. The document contains two questions - the first is a true/false question with 10 statements about financial accounting concepts, and the second contains 5 multiple choice questions about accounting terms and principles. 2. Key concepts covered in the true/false section include that accounting provides financial information to both internal and external users of a business, transactions recorded in accounting are those measured in monetary terms, and the accounting process involves identification, recording, and communication steps. 3. The multiple choice questions test understanding of terms like "economic event", "transaction", principles like recording assets at historical cost, and assumptions like the monetary unit assumption.

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Mohamed Diab
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20 views

Assignment (1) Fin ACC

1. The document contains two questions - the first is a true/false question with 10 statements about financial accounting concepts, and the second contains 5 multiple choice questions about accounting terms and principles. 2. Key concepts covered in the true/false section include that accounting provides financial information to both internal and external users of a business, transactions recorded in accounting are those measured in monetary terms, and the accounting process involves identification, recording, and communication steps. 3. The multiple choice questions test understanding of terms like "economic event", "transaction", principles like recording assets at historical cost, and assumptions like the monetary unit assumption.

Uploaded by

Mohamed Diab
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Financial Accounting (1) Section (1)

Assignment (1)
Name: - ……………………………………………... ID :-…………….

Question (1): True or False

1. Owners of business firms are the only people who need


accounting information.
2. Transactions that can be measured in dollars and cents are
recorded in the financial information system.
3. Management of a business enterprise is the major external
user of information
4. Accounting communicates financial information about a
business enterprise to both internal and external users.
5. The economic entity assumption requires that the activities
of an entity be kept separate and distinct from the activities
of its owner and all other economic entities
6. The monetary unit assumption states that transactions that
can be measured in terms of money should be recorded in
the accounting records
7. The cost and fair market value of an asset are the same at
the time of acquisition and in all subsequent periods.
8. The hiring of a new company president is an economic
event recorded by the financial information system.
9. The three steps in the accounting process are identification,
recording, and communication.
10. The two most common types of external users are
investors and company officers.

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Question (2): MCQs

1. Accountants refer to an economic event as a


A. Purchase.
B. Sale.
C. Transaction.
D. Change in ownership.
2. The accounting process is correctly sequenced as
A. identification, communication, recording.
B. recording, communication, identification.
C. identification, recording, communication.
D.communication, recording, identification.
3. Which of the following is an external user of accounting
information?
A. Labor unions.
B. Finance directors.
C. Company officers.
D. Managers.
4. The historical cost principle requires that when assets are acquired,
they be recorded at

A. appraisal value.
B. cost
C. market price
D.book value.
5. The assumption that the unit of measure remains sufficiently
constant over time is part of the
A. economic entity assumption.
B. cost principle.
C. historical cost principle.

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D. monetary unit assumption

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