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Accounting Mcqs

For which step of accounting process the accountants of business entity prepare financial statements?

  • (A)  Identification of economic event
  • (B)  Communication of financial information
  • (C)  Recording financial information
  • (D)  Making decisions about business
Submitted By :Ali Uppal


Financial accounting provides financial information to all of the following external users except:

  • (A)  Government agencies
  • (B)  investors
  • (C)  Creditors
  • (D)  Managers
Submitted By :Ali Uppal


Bookkeeping mainly concerns with which part of accounting process?

  • (A)  Analyzing
  • (B)  Preparing financial statements
  • (C)  Recording financial information
  • (D)  Auditing the books of accounts
Submitted By :Ali Uppal


Identify the correct sequence of accounting process

  • (A)  Communicating→Recording→Identifying
  • (B)  Recording→Communicating→Identifying
  • (C)  Identifying→communicating→recording
  • (D)  Identifying→recording→communicating
Submitted By :Ali Uppal


In accounting an Economic event is referred to as:

  • (A)  Cash
  • (B)  Bank statement
  • (C)  Transaction
  • (D)  Exchange of money
Submitted By :Ali Uppal


Which is the most important characteristic that all assets of a business have?

  • (A)  Long life of assets
  • (B)  Value of assets
  • (C)  Intangible nature of assets
  • (D)  Future economic benefits
Submitted By :Ali Uppal


Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

  • (A)  Identifying transactions
  • (B)  Preparing “T Accounts”
  • (C)  Preparing financial statements
  • (D)  Preparing trial balances
Submitted By :Ali Uppal


Liability are arisen from which of the following events?

  • (A)  Present event
  • (B)  Future event
  • (C)  Past event
  • (D)  None of them
Submitted By :Ali Uppal


Submitted By :Ali Uppal


The gross decrease in economic benefits for the business are what?

  • (A)  Expenses
  • (B)  Obligations
  • (C)  Creditors
  • (D)  Income or gain
Submitted By :Ali Uppal