Business Decision-Making and Accounting
Solutions to Lecture Activities
ACCT 1046 Introductory Accounting
Semester 1, 2010
Lecture 1 Unit 1 – Business Decision Making and Accounting
Lecture Activity 1
1. The accounting information system comprises four main procedures: analysis, recording, reporting and identification. The order in which they occur is: a) Reporting, analysis, recording, identification b) Identification, analysis, recording, reporting c) Analysis, identification, recording, reporting d) Identification, recording, analysis, reporting e) Analysis, recording, reporting, identification
Source: Workbook to accompany Accounting an Introduction, 3rd edition, Jenner & Silvester, Pearson Prentice Hall 2006
Lecture Activity 1 (continued)
2. Which of the following phrases best describes the key qualitative characteristic of ‘relevance’? a) Relevance means that accounting reports should be expressed with as much clarity as possible b) Relevance infers the same accounting treatment for similar items c) Relevance means that accounting information must not contain any undue bias or error of a material nature d) Relevance means that accounting information should have the ability to influence decisions e) None of the above
Source: Workbook to accompany Accounting an Introduction, 3rd edition, Jenner & Silvester, Pearson Prentice Hall 2006
Lecture Activity 1 (continued)
3. When accounting information is free from material bias or error, it is said to be: a) Comparable b) Reliable c) Relevant d) Understandable e) Material
Source: Workbook to accompany Accounting an Introduction, 3rd edition, Jenner & Silvester, Pearson Prentice Hall 2006
Lecture Activity 1 (continued)
4. An item of accounting information that is relevant to a particular decision, and reliable, comparable and understandable by decision makers, may still not be produced because: a) Nobody would be interested anyway; b) The costs of producing the information do not outweigh the perceived benefits; c) Unless an
ACCT 1046 Introductory Accounting
Semester 1, 2010
Lecture 1 Unit 1 – Business Decision Making and Accounting
Lecture Activity 1
1. The accounting information system comprises four main procedures: analysis, recording, reporting and identification. The order in which they occur is: a) Reporting, analysis, recording, identification b) Identification, analysis, recording, reporting c) Analysis, identification, recording, reporting d) Identification, recording, analysis, reporting e) Analysis, recording, reporting, identification
Source: Workbook to accompany Accounting an Introduction, 3rd edition, Jenner & Silvester, Pearson Prentice Hall 2006
Lecture Activity 1 (continued)
2. Which of the following phrases best describes the key qualitative characteristic of ‘relevance’? a) Relevance means that accounting reports should be expressed with as much clarity as possible b) Relevance infers the same accounting treatment for similar items c) Relevance means that accounting information must not contain any undue bias or error of a material nature d) Relevance means that accounting information should have the ability to influence decisions e) None of the above
Source: Workbook to accompany Accounting an Introduction, 3rd edition, Jenner & Silvester, Pearson Prentice Hall 2006
Lecture Activity 1 (continued)
3. When accounting information is free from material bias or error, it is said to be: a) Comparable b) Reliable c) Relevant d) Understandable e) Material
Source: Workbook to accompany Accounting an Introduction, 3rd edition, Jenner & Silvester, Pearson Prentice Hall 2006
Lecture Activity 1 (continued)
4. An item of accounting information that is relevant to a particular decision, and reliable, comparable and understandable by decision makers, may still not be produced because: a) Nobody would be interested anyway; b) The costs of producing the information do not outweigh the perceived benefits; c) Unless an