Financial Accounting_4

#1. Which of the following is the primary objective of financial accounting?

a) Cost determination

b) Recording of financial transactions

c) Providing financial information to stakeholders

d) Tax calculation

#2. Financial accounting helps in

a) Tax planning

b) Decision-making for investors

c) Setting product prices

d) Managing employee performance

#3. Which financial statement is primarily used to assess profitability?

a) Balance Sheet

b) Cash Flow Statement

c) Income Statement

d) Trial Balance

#4. Which of the following is NOT an objective of financial accounting?

a) Recording business transactions

b) Providing information to stakeholders

c) Controlling costs

d) Assessing financial position

#5. Financial accounting primarily benefits which of the following stakeholders?

a) Internal management

b) Shareholders and investors

c) Employees only

d) Government only

#6. Which qualitative characteristic ensures that financial statements are free from errors and bias?

a) Comparability

b) Timeliness

c) Reliability

d) Relevance

#7. Which principle ensures financial statements provide meaningful information?

a) Money measurement principle

b) Cost principle

c) Full disclosure principle

d) Business entity concept

#8. Financial accounting focuses on reporting for which period?

a) Future transactions

b) Past transactions

c) Real-time transactions

d) Personal transactions

#9. Which of the following is NOT a function of financial accounting?

a) Recording financial transactions

b) Preparing budgets

c) Preparing financial statements

d) Communicating financial results

#10. Which accounting concept assumes that a business will continue to operate indefinitely?

a) Consistency concept

b) Going concern concept

c) Accrual concept

d) Dual aspect concept