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

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

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

3. 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

4. The first step in accounting process is___________?

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

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

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

6. Non Trading institution prepare:______________?

   A. profit and loss account
   B. Manufacturing account
   C. Income and Expenditure Account
   D. Cost of good sold

   Submitted by: Aqib Niazi

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

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

8. Institute of Chartered Accountants of Pakistan was established in____________?

   A. 1949
   B. 1956
   C. 1961
   D. 1972

9. Identify the correct sequence of accounting process

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

10. 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