IGCSE Accounting Paper-1: Specimen Questions with Answers 279 - 280 of 338

Question 279

MCQ▾

Which among the following is an external user of accounting information? (Marks 1)

Choice (4)
a.	Director of Research & Development
b.	Customer
c.	Purchasing Officer
d.	Inventory Clerk

External Users are the parties which are present outside the business organization whereas the internal users are the parties present inside the business organization.
Customer is an external user. Purchasing Officer, Director of Research & Development are part of internal management of the business and inventory clerk is an employee. These are internal users.

MCQ▾

All are the attributes of an asset except-

Choice (4)
a.	Resources owned by a business entity
b.	Not measurable in monetary terms
c.	Resources contributed by the outsiders
d.	Future economic benefits

Assets are valuable resources owned by a business entity. These can either be contributed by the owner himself or by the outsiders. They can be physical such as goods, machinery, building etc. or intangible like patent.
Assets have the ability to provide economic benefits to business in terms of cash inflows resulting from them in future periods.
Assets have measurable in terms of money. i.e.. one can sell an asset in the market and get some money.