Accounting MCQs / Q&A

Liabilities are which of the following?

A. Resources
B. Obligations
C. Future benefits
D. Expenses

An asset posses which of the following?

A. Future economic benefits for the business
B. All kind of benefits for the business
C. Expenses for the business
D. Merits and Demerits for the business

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

A. Partnership
B. Sole proprietorship
C. Company
D. Non-profit organization

Financial statements differ from management account because

A. They are mainly prepared for external users of financial information
B. They are more complex and hard to prepare
C. The are the summary of accounting data
D. The are prepared on basis of actual concept

_________ is the first phase of accounting cycle?

A. Identifying an economic event or transaction
B. Preparing journals
C. Posting entries to ledger accounts
D. Making decisions about business

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

A. Creditor of the business
B. Government agency
C. holder of the business
D. Manager of the business

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

A. Manager of the business
B. CEO of the business
C. Creditor of the business
D. Controller of the business

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

A. Recording
B. summarizing
C. Groug
D. Processing

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