1. The provision of accounting information within the business entity is referred to as: a. financial accounting. *b. management accounting. c. commercial accounting. d. public accounting. Answer: b Learning objective 1.1 – Explain the business context and the need for decision making. Feedback: The provision of information within the business entity is referred to as management accounting. 2. The accounting process includes which steps: *a. identifying, measuring, recording and communicating. b. identifying, recording, communicating and justifying. c. measuring, adjusting, recording and communicating. d. measuring, evaluating, recording and communicating. Answer: a Learning objective 1.2 – Define accounting, describe the accounting process and define the diverse role of accountants. Feedback: The four steps of the accounting process are identifying, measuring, recording and communicating relevant transactions and events. 3. The sole trader form of business organisation: a. must have at least two owners. b. combines business records with the personal records of the owner. *c. results in the owner having personal liability for the debts of the business. d. is a separate legal entity. Answer: c Learning objective 1.3 – Explain the characteristics of the main forms of business organisation. Feedback: Under the sole trader business