The first step in accounting process is___________?

Related Mcqs:

1. 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

2. 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

3. 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

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

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

5. The Basic accounting equation is___________?

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

6. Identify the correct sequence of accounting process

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

7. 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

8. _________ 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

9. Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?

   A. Income Statement
   B. Balance Sheet
   C. Cash Flow Statement
   D. Retained Earning Statement

10. In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is?

    i. Debit Bills Receivable Account
    ii. Debit Drawee‘s Account
    iii. Credit Drawee‘s Account
    iv. Credit Sales Account

    A. Only (i) above
    B. Both (ii) and (iv) above
    C. Both (i) and (iii) above
    D. Both (i) and (iv) above