A. Profit and Loss Account
B. Balance Sheet
C. Funds Flow Statement
D. Trial Balance

Trial Balance D. is not a financial statement. It is a list of all accounts showing
outstanding balances at the end of the accounting period. It helps in the preparation of financial statements. The Profit and Loss Account A.; Balance Sheet B. and Funds Flow statement C. are the financial statements prepared by a business entity. Funds flow statement though categorized as one of the financial statements, its preparation is not mandatory. Thus D. is the correct answer

Related Mcqs:

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

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

  2. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).

    A. Cash receipt journal
    B. Cash payment journal
    C. Cash book
    D. Financial statements

  3. Which of the following is the external user of financial statements?

    A. Manager of the business
    B. CEO of the business
    C. Creditor of the business
    D. Controller of the business

  4. Which of the following is the internal user of financial statements?

    A. Creditor of the business
    B. Government agency
    C. Shareholder of the business
    D. Manager of the business

  5. 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

  6. Which of the following is not classified as inventory in the financial statements?

    A. Finished goods
    B. Work-in-process
    C. Stores and spares
    D. Advance payments made to suppliers for raw materials

  7. 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

  8. Keeping the log of financial information in books of original entries is called__________?

    A. Recording
    B. summarizing
    C. Grouping
    D. Processing

  9. Financial statements differ from management account because

    A. They are mainly prepared for external users of financial information
    B. They are more complex and hard to prepare
    C. The are the summary of accounting data
    D. The are prepared on basis of actual concept

  10. At the time of preparation of financial accounts, bad debt recovered account will be transferred to?

    A. Debtors A/c
    B. Profit & Loss A/c
    C. Profit & Loss Adjustment A/c
    D. Profit & Loss Appropriation A/c

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Accounting Mcqs
Accounting Mcqs,

Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. accounting mcqs for accountant. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant.

Principles of Accounting, Accounting Equation, Analyzing & Classifying Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments.

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