Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

Related Mcqs:

1. _________ 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

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

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

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 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

7. Which of the following factors are primarily considered to determine the economic life of an asset?

   A. Passage of time, asset usage, and obsolescence
   B. Tax regulations and SEBI guidelines
   C. Tax regulations and asset usage
   D. SEBI guidelines and Asset usage

8. 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

9. 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

10. 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