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

Question 279

Question

MCQ▾

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

Choices

Choice (4)

a.

Director of Research & Development

b.

Customer

c.

Purchasing Officer

d.

Inventory Clerk

Answer

b.

Explanation

  • 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.
The Internal Users

Question 280

Question

MCQ▾

All are the attributes of an asset except-

Choices

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

Answer

b.

Explanation

  • 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.

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