The systems of accounting are _____________?

Related Mcqs:

1. 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

2. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

3. Average Accounting Return is a measure of accounting profit relative to:

   A. Book value
   B. Intrinsic value
   C. Cost
   D. Market value

4. In accounting an Economic event is referred to as:

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

5. 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

6. The Basic accounting equation is___________?

   A. Asset=Expense +Income
   B. Assets=Cash+Capital
   C. Assets=Capital+Liabilities
   D. Assets=Expenses+Capital

7. Which of the following is the practical implementation of the accounting equation?

   A. Cash flow statement
   B. Income statement
   C. Statement of changes in equity
   D. Statement of financial position

8. Which of the following accounting equation is correct?

   A. Cash+Other assets=Capital-Liabilities
   B. Capital+ Liabilities=Assets+Income
   C. Assets-Liabilities=Capital
   D. Assets+Capital=Liabilities

9. The first step in accounting process is___________?

   A. Recording the transaction
   B. Identifying the transaction
   C. Posting the transaction
   D. Preparing the source documents

10. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

    A. Rs. 33,000
    B. Rs. 25,000
    C. Rs. 17,000
    D. Rs. 8,000