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
Financial accounting provides financial information to all of the following external users except:
(A) Government agencies
(B) investors
(C) Creditors
(D) Managers
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
Identify the correct sequence of accounting process
(A) Communicating→Recording→Identifying
(B) Recording→Communicating→Identifying
(C) Identifying→communicating→recording
(D) Identifying→recording→communicating
In accounting an Economic event is referred to as:
(A) Cash
(B) Bank statement
(C) Transaction
(D) Exchange of money
Which is the most important characteristic that all assets of a business have?
(A) Long life of assets
(B) Value of assets
(C) Intangible nature of assets
(D) Future economic benefits
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
Liability are arisen from which of the following events?
(A) Present event
(B) Future event
(C) Past event
(D) None of them
An asset must be _______ by the business to be shown as an asset in its “balance sheet”
(A) Possessed
(B) Owned
(C) Controlled
(D) Used
The gross decrease in economic benefits for the business are what?
(A) Expenses
(B) Obligations
(C) Creditors
(D) Income or gain