Accounting Mcqs

Page No. 65

________ is a separate legal entity that Total capital can be divided in many shares.


aPartnership


bSole proprietorship


cCompany


dNon-profit organization


View Answer Company

Financial statements differ from management account because


aThey are mainly prepared for external users of financial information


bThey are more complex and hard to prepare


cThe are the summary of accounting data


dThe are prepared on basis of actual concept



_________ is the first phase of accounting cycle?


aIdentifying an economic event or transaction


bPreparing journals


cPosting entries to ledger accounts


dMaking decisions about business



Which of the following is the internal user of financial statements?


aCreditor of the business


bGovernment agency


cShareholder of the business


dManager of the business



Which of the following is the external user of financial statements?


aManager of the business


bCEO of the business


cCreditor of the business


dController of the business



Keeping the log of financial information in books of original entries is called__________?


aRecording


bsummarizing


cGrouping


dProcessing


View Answer Recording

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


aIdentification of economic event


bCommunication of financial information


cRecording financial information


dMaking decisions about business



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


aGovernment agencies


binvestors


cCreditors


dManagers


View Answer Managers

Bookkeeping mainly concerns with which part of accounting process?


aAnalyzing


bPreparing financial statements


cRecording financial information


dAuditing the books of accounts



Identify the correct sequence of accounting process


aCommunicating→Recording→Identifying


bRecording→Communicating→Identifying


cIdentifying→communicating→recording


dIdentifying→recording→communicating



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