MCQs / Q&A

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

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

A. Government agencies
B. investors
C. Creditors
D. Managers

Bookkeeg mainly concerns with which part of accounting process?

A. Analyzing
B. Preparing financial statements
C. Recording financial information
D. Auditing the books of accounts

Identify the correct sequence of accounting process

A. Communicating→Recording→Identifying
B. Recording→Communicating→Identifying
C. Identifying→communicating→recording
D. Identifying→recording→communicating

In accounting an Economic event is referred to as:

A. Cash
B. Bank statement
C. Transaction
D. Exchange of money

A. General journal
B. Cash journal
C. Purchase journal
D. Sales return day book

BUSINESS paid rent amounting to $100″ which of the following specialized journals records this transaction?

A. Cash receipts journal
B. Cash payments journal
C. Sales journal
D. Purchase journal