4404

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39.At present the necessity of improving accounting ... as one of the most important tasks.

a)is regarded

b)is not considered

c)is conducted

40.The modern accountant... a number of multifarious duties.

a)performs

b)devises

c)assesses

Score 2 for each correct answer. Total 80

Part В

Find a mistake in the following sentences

A B C D 1. There is a general opinion in this country that accounting education should

improve.

A B C

2. Our University lecturer in accounting considers accountancy profession to

D

gain an important status of late.

A B C D

3. The accountant must consider his work as a tool to use by the manager.

A B C D

4. As is known, the main aim of all businesses are to make profit.

AB

5.Human resources is stated to represent the number of people (quantity),

C D

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while every employee has his own competence (quality).

A B C D

6. Accountancy is sometimes said to have translated firms' activities into figures.

A B C D

7. This diversion must correct only by accounting information and retraining staff.

A B C D 8. The theory of accounting is thought to develop through several stages over

centuries.

A B C D

9. These calculations are allowed the separation of goods and VAT flows for sales and purchases.

A B C D 10. Book-keeping may define as the procedure used in recording business

transactions.

A B C

11. As a rule, a book-keeper is known to have recorded repeated and D

uncomplicated business transactions.

A B

12. The chief accountant of the company would like their accounts department C D

play a greater role in business activity.

A B C D 13. Students in accounting believe computer skills to have played an increasingly important role in their future job.

A B C

14.The importance of accounting in many countries of the world is increased at D

present.

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A B C D

15. Broadly speaking, the accountant enables the management assessing their own performance.

A B D

16. A very important quality crucial for accountants are the ability to think clearly.

A B

17. The accountant should be able to put down his thoughts simply and clearly

C D

so that they can also understand by management and clients as well.

A B C D

18. Preparing financial reports for the management are the most essential skill for auditors.

A B C D

19. A plan to provide by the chief accountant to the management will be discussed tomorrow.

A B C D 20. We expect our chief accountant examine and analyze the accounts of this

business.

Score 1 for each mistake spotted

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Test 2

Introduction to Accounting

Part A

Choose a correct variant

1.The information provided by accountants permits users ...

a)to make informed judgements and decisions.

b)to verify business transactions.

c)to establish what their needs are.

2.Being a form of service, accounting ... economic events and business performance as a whole.

a)presents

b)establishes

c)measures

3.It is generally accepted that users within each group have ... needs.

a)various

b)very similar, or the same

c)potential

4.To make an investment decision owners of businesses need to assess...

a)their available resources.

b)liquidity of the business they are going to invest.

c)both their likely future returns from investments and possible future risks.

5.All the lenders ... into two groups: 1) short-term lenders and 2) long-term lenders.

a)can be considered

b)can be divided

c)can be defined

6.Usually short-term lenders are concerned with ...

a)the efficiency of management.

b)long-term prospects of the business.

c)liquidity of the business.

7.Suppliers of goods and services may need information about...

a)both the liquidity of the business and its long-term prospects.

b)major potential needs of the business.

c)the main competitors of the business.

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8.The term liquidity refers to ...

a)the availability of cash.

b)a flow of goods and services.

c)the potential risks involved in the business.

9.Carrying out their duties, managers require ...

a)the information about the available resources of the business.

b)different kinds of accounting information.

c)the information about the efficiency of accounting system.

10.Customers need information about...

a)the current financial position of the business, its future performance and prospects.

b)future investors and returns from their investments.

c)liquidity of the business and its long-term obligations.

11.Employers are generally concerned with the information about...

a)the amount of profit made in order to assess liability for taxation.

b)the performance of the business and its individual units.

c)possible changes in employment levels, the conditions of service and the ability of the business to meet pay demands.

12.The public is usually interested in receiving information about a business on such matters as ...

a)employment and environmental policies and donations to community.

b)sales and profits made.

c)assessing the effects of government policies.

13.Competitors have a particular interests in such information as ...

a)the sales and profits achieved and the value of resources held by the business.

b)the grants and subsidies provided to the business by the government.

c)the performance and prospects of individual units of the business.

14.To be useful accounting information should ... certain qualities.

a)include

b)provide

c)possess

15.The qualities of accounting information may at times ... with one another.

a)be in conflict

b)be in conformity

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c)be of interest

16.Relevance is ... because relevant accounting information has the potential to influence the decisions of users.

a)the primary quality of accounting information

b)a desirable but not always useful quality of accounting information

c)an unnecessary quality because it is always in conflict with other qualities of accounting information

17.Accounting information which provides no benefits to users is called ...

a)objective.

b)understandable.

c)irrelevant.

18.Verifiability suggests that the information produced…

a)provides no benefits to users.

b)can be independently observed and tested.

c)can favour only one group of users.

19.One of the most important qualities of accounting information is ... which makes it relevant.

a)timeliness

b)comparability

c)understandability

20.To possess the quality of ... accounting information should be presented in such a way that the decision maker can recognise similiraties, differences and trends and make comparisons with other companies.

a)objectivity

b)timeliness

c)comparability

21.Financial reports can be easily prepared if there is ... to classify all the transactions of a business.

a)the amount of data

b)a system of indicators

c)a filing system

22.As is known, the basic storage unit for data in accounting systems is...

a)a transaction.

b)an entry.

c)an account.

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23.The simplest form of an account... three parts.

a)represents

b)has

c)accounts for

24.An entry made on the left side of the account is called...

a)credit.

b)debit.

c)a single entry.

25.Asset accounts, liability accounts and owner's equity accounts are ... types of accounts.

a)the most commonly used

b)the simplest

c)rarely used

26.A book or file, which contains all groups of the company's accounts is called ...

a)a ledger.

b)a filing system.

c)a chart of accounts.

27.In order to find an account easily all the accounts in the ledger...

a)are listed.

b)are numbered.

c)are stored.

28.In manual accounting systems each account ... on a separate page or card.

a)is kept

b)is numbered

c)is called

29.The number of accounts used by a company depends on...

a)the nature of the company's business.

b)the demands of management.

c)the convenience of maintaining them on magnetic tapes or discs.

30.When preparing financial statements for an accounting period the accountant is usually guided by the concept of...

a)going concern.

b)monitoring.

c)deviations.

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31.Accountants working for an advertising agency ... with national income accounts.

a)are concerned

b)have no concern

c)express a deep concern

32.Our chief accountant ... about the ability of our competitors to meet their commitments on time.

a)has no concern

b)expresses a deep concern

c)is concerned with

33.Professional demands for accountants are increasing and many accounting graduates ... under modern conditions.

a)feel concern about their career

b)are not concerned about their future career

c)do not concern themselves with their career

34.According to our chief accountant carelessness on the part of the company's young accountants ...

a)speaks for itself.

b)causes concern.

c)does not concern their work.

35.Nowadays it is ... to keep the ledger as a bound book.

a)necessary

b)not convenient

c)possible

36.Preparing accounting information is not a mechanical task. The accountant should be well-trained enough to use professional judgement and ethical standards. … , I always try to do my best.

a)As far as I'm concerned

b)It does not concern me

c)It is not my concern

37.Management accountants ... be professionally competent to perform their duties properly.

a)should

b)must not

c)might

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38.Accounts Payable are those which ... with amounts owed to creditors on the basis of an oral or implied promise to pay.

a)have no concern

b)are concerned with

c)do not concern

39.A company ... keep records of increases and decreases in each asset it owns.

a)may

b)must

c)can

40.Whether a company keeps records by hand or by computer, management ... be able to refer to these accounts in order to study the company's performance.

a)must

b)can

c)may

Score 2 for each correct answer. Total 80

Part В Find a mistake in the following sentences

A B C 1. Information about a company is more useful if it must be compared with

similar

D

facts about the same company over several periods or another company. A B

2. The building up of large cash balances by a business must indicate the C D

possible threat of a take-over in the future.

A B C

3. Accounting information must have been relevant if it has the potential to D

influence the decisions and judgements of users.

A B C 4. As is known, verifiability suggests that accounting information may be

D observed and tested independently.

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A B C

5. Accounting information is a tool and, like most tools, can be of much help to D

those who misuse it.

A B C

6. Although it should appear that the computer is doing the accountant's job, it is D

in fact only a tool.

A

7. Different qualities of accounting information might have been defined as the B C D

standards for judging the data which accountants usually give to decision makers. A B C

8. If accounting information is to be useful, it may have two major qualities: D

relevance and reliability.

A B C D

9. A friend of mine is now taking a course on tax accounting. He can be interested in this field of accounting.

A B C

10. According to the sale manager of our company exports sales must go down D

to 100 mln. roubles per month if the management does not take radical measures. A B C

11. I have no idea who must have provided this data. Our new accountant? I can't D

believe it, he is competent enough.

A B

12. According to our experts' forecasts our suppliers can be satisfied with their C D

potential returns and soon they will ask to change the terms of the contract. A B C

13. My friend is not doing quite well in accounting, he must fail at the exam if he D

does not try very hard.