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Chapter 1 Online Test

The document is a test paper from the 'Principles of Accounts for CSEC®' 2nd edition, focusing on accounting as a profession. It includes multiple-choice questions and problem-solving questions aimed at preparing students for their accounting exams. Key topics covered include the purpose of accounting, user interests in financial records, prerequisites for becoming a CPA, and ethical violations in accounting.

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14 views

Chapter 1 Online Test

The document is a test paper from the 'Principles of Accounts for CSEC®' 2nd edition, focusing on accounting as a profession. It includes multiple-choice questions and problem-solving questions aimed at preparing students for their accounting exams. Key topics covered include the purpose of accounting, user interests in financial records, prerequisites for becoming a CPA, and ethical violations in accounting.

Uploaded by

angelsmall46
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Principles of Accounts for CSEC®

2nd edition

Chapter 1: Accounting as a profession


The following test paper contains four multiple-choice questions, to help you prepare for
Paper 1, and one problem question, to help you prepare for Paper 2. If you decide to complete
the paper under exam conditions, you should give yourself no longer than 40 minutes to
complete all questions.

1. The main purpose of accounting is:


(A) to record the profit a business makes
(B) to provide management with information for making sound financial decisions
(C) to determine at what price the business can sell goods to make a profit
(D) to see if there is an increase in the firm’s capital from the last financial year.
(1 mark)

2. Employees would be interested in the firm’s financial records MAINLY because:


(A) they want to work for the firm’s competitor
(B) to determine if their employment with the firm is secure
(C) it is legally their right to know in order to negotiate employee discounts
(D) to see how much money their supervisors are being paid, in case they want a promotion.
(1 mark)

3. Which of the following is a prerequisite to becoming a CPA (certified public accountant)?


(A) A high-school pass in accounting
(B) Work experience in an accounting firm for at least 5 years
(C) A high school pass and 5 years’ work experience in accounting
(D) A bachelor’s degree in Accounting.
(1 mark)

4. Fraud, identity theft and leaking of information are MAINLY violations of:
(A) principles
(B) ethics
(C) legality
(D) professionalism.
(1 mark)

1 Principles of Accounts for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 1: Accounting as a profession

5. (a) Name two external users and two internal users of accounting information and explain
why each user would need such information.

(8 marks)

(b) Explain how a person who pursued a career in accounting could succeed as an
entrepreneur.

(4 marks)

2 Principles of Accounts for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 1: Accounting as a profession

(c) (i) Complete the following table by stating which accounting principle/ethic is being
violated in each given situation:
Situation Accounting principle/ethic
1. The owner does not want an independent valuer to value the
premises because of the cost; he suggests the accountant
estimates the value.
2. The accountant has submitted a report with numerous errors.
3. The owner wants the accountant to prepare the ledgers to show
an increase in profits in order to secure a bank loan.
4. The accountant is yelling at a client because of a disagreement.
5. The accountant discusses a client’s account with the client’s
wife, whose name is not on the account.
6. The owner recommends a client to an insurance company
owned by his friend.

(6 marks)

(ii) A client is adamant against paying taxes to the government because he believes his
tax dollars are being misappropriated. Assuming you work for this accounting firm,
what is your advice to this client? Give at least one reason to support your advice.

(2 marks)

(24 marks)

3 Principles of Accounts for CSEC®, 2nd edition © Oxford University Press 2019

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