Chapter 1: Decision making and the role of accounting

1. Which of the following has been the most influential in redefining the role of accountants as analysts and decision makers rather than as mainly number-crunchers?

a. The collapse of major company groups

b. The trend towards globalisation

c. Developments in information technology

d. The increase in demand for non-financial information

2. The job of the modern accountant is a challenging one. The most critical requirement is:

a. Neatness

b. Punctuality

c. Ability to manage change

d. Ability to add up

3. Which of these is not an economic decision?

a. Religious belief

b. Taking out a loan

c. Purchasing a mobile phone

d. Renting a flat

4. Accounting is a profession that has evolved in response to society’s need for economic information to help people make:

a. Dollars

b. Decisions

c. Demands

d. Donations

5. Select the correct order in which the steps in the decision making process occur.

1. Choose a course of action

2. Establish goals

3. Gather information

4. Evaluate the consequences of the different alternatives

a. 2, 4, 3, 1

b. 2, 3, 4, 1

c. 4, 3, 2, 1

d. 3, 1, 2, 4

6. Which of the four stages of the accounting process is considered to require the most extensive training, experience and judgement?

a. Identifying

b. Measuring

c. Recording

d. Communicating