In accounting an Economic event is referred to as:

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. The assets which come into existence upon the happening of a certain event are called__________?

   A. Contingent assets
   B. Fixed assets
   C. Fictitious assets
   D. Quick assets

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. Which of the following accounts are closed at the end of an accounting period?

   A. Nominal accounts
   B. Balance sheet accounts
   C. Real accounts
   D. None of them

7. The Basic accounting equation is___________?

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

8. 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

9. 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

10. The first step in accounting process is___________?

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