Which of the following accounting equation is correct?

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. 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

5. What is the basic accounting equation?

   A. Capital+Liabilities=Assets
   B. Assets+ liabilities =Capital
   C. Capital+assets=liabilities
   D. Liabilities+Capital

6. The Basic accounting equation is___________?

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

7. Identify the correct sequence of accounting process

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

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

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

9. 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

10. 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