GCE O-Level · Principles of Accounts (7087)

Roles of accounting and accountants: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Roles of accounting and accountants.

9 questions20 marksFree, no account

Question 1

1 mark

Which statement correctly describes the function of an accountant setting up an accounting information system?

Question 2

1 mark

Which of the following scenarios represents a failure of an accountant's stewardship role?

Question 3

1 mark

Consider the following statements regarding the role of accountants and ethical conduct:

1. Unethical accounting practices can lead to poor resource allocation by investors who rely on distorted financial statements.
2. Stewards of a business are responsible for safeguarding business resources and providing accurate financial accountability to stakeholders.
3. Objectivity requires an accountant to strictly report the owner's desired profit figures regardless of actual performance.

Which of the statements is/are correct?

Question 4

1 mark

Which of the following best defines the professional ethics principle of integrity for an accountant?

Question 5

1 mark

An accountant intentionally misstates financial statements by omitting substantial unpaid expenses to report an artificially high profit. Which of the following describes the most likely impact of this unethical behavior on stakeholders?

Question 6

2 marks

In the context of professional ethics for accountants, define the principle of integrity.

Write your answer out first, then check it against the worked solution.

Question 7

4 marks

An accountant at a Private Limited Company is pressured by the Managing Director to record personal family expenses as business entertainment costs to reduce the company's taxable profit. Identify the two professional ethics principles defined in the syllabus that the accountant would violate by complying. Explain how objectivity specifically applies to the accountant's duty in this scenario.

Write your answer out first, then check it against the worked solution.

Question 8

5 marks

A senior accountant discovered that a previous staff member intentionally omitted several unpaid utility invoices from the records to make the company appear more profitable to creditors.

(a) Define integrity as it relates to professional ethics in accounting.
(b) Evaluate the impact of this unethical behavior on the creditors' decision-making process regarding the business's creditworthiness.

Write your answer out first, then check it against the worked solution.

Question 9

4 marks

Accountants play an important role as stewards of a business and are expected to follow professional ethics.

(a) State the role of an accountant as a steward of a business.
(b) Define the professional ethics principle of integrity.
(c) State the main purpose of accounting in relation to decision-making by stakeholders.

Write your answer out first, then check it against the worked solution.

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