📒Accounting MCQs
Accounting MCQs
397 MCQs51
An asset must be _______ by the business to be shown as an asset in its “balance sheet”
APossessed
BOwned
CControlled
DUsed
52
The gross decrease in economic benefits for the business are what?
AExpenses
BObligations
CCreditors
DIncome or gain
53
________ is the gross inflow of economic benefits?
AAssets
BLiabilities
CIncome
DExpenses
54
Liabilities are which of the following?
AResources
BObligations
CFuture benefits
DExpenses
55
An asset posses which of the following?
AFuture economic benefits for the business
BAll kind of benefits for the business
CExpenses for the business
DMerits and Demerits for the business
56
________ is a separate legal entity that Total capital can be divided in many shares.
APartnership
BSole proprietorship
CCompany
DNon-profit organization
57
Financial statements differ from management account because
AThey are mainly prepared for external users of financial information
BThey are more complex and hard to prepare
CThe are the summary of accounting data
DThe are prepared on basis of actual concept
58
_________ is the first phase of accounting cycle?
AIdentifying an economic event or transaction
BPreparing journals
CPosting entries to ledger accounts
DMaking decisions about business
59
Which of the following is the internal user of financial statements?
ACreditor of the business
BGovernment agency
CShareholder of the business
DManager of the business
60
If credit side of a bank account is greater than the debit side, it indicates which of the following?
ABank overdraft
BCash at bank
CBank balance
DCurrent Asset