Identify the correct sequence of accounting process

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. 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

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

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

4. Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?

   A. Bank charges will be debited in cash book
   B. Bank charges will be added to cash book balance
   C. Bank charges will be credited in cash book
   D. Bank charges need no adjustment in cash book

5. Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.

   A. $500 will be debited
   B. $500 will be credited
   C. Non-adjustable
   D. $1000 will be subtracted

6. A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

   A. $1000 will be added to cash book balance
   B. $2000 will be deducted from cash book balance
   C. $3000 will be added to cash book balance
   D. $3000 will be subtracted from cash book balance

7. $5000 deposited in bank account was entered twice in the cash book. Identify the correct adjustment in cash book.

   A. $5000 will be credited
   B. $5000 will be debited
   C. $10,000 will be credited
   D. $10,000 will be debited

8. 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

9. 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

10. 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