Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

31.
Identify the correct sequence of accounting process

A. Communicating -> Recording -> Identifying

B. Recording -> Communicating -> Identifying

C. Identifying -> Communicating -> Recording

D. Identifying -> Recording -> Communicating

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32.
Bookkeeping mainly consists of which part of accounting process?

A. Analysing

B. Preparing financial statements

C. Recording financial information

D. Auditing the books of accounts

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33.
Auditing refers to

A. Reporting the financial information

B. Examination of financial information

C. Preparation of financial statements

D. Maintaining the ledger accounts

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34.
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

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35.
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

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36.
________ is the first phase of accounting cycle

A. Identifying an economic event or transaction

B. Preparing Journal

C. Posting entries to Ledger accounts

D. Making decisions about business

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37.
______ is a separate legal entity whose total capital can be divided into many shares

A. Partnership

B. Sole Proprietorship

C. Company

D. Non-profit organization

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38.
An asset possesses which of the following?

A. Future economic benefits for the business

B. All kinds of benefits for the business

C. Expenses for the business

D. Merits & Demerits for the business

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39.
Liabilities are which of the following?

A. Resources

B. Obligations

C. Future benefits

D. Expenses

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40.
_______ is the gross inflow of economic benefits

A. Assets

B. Liabilities

C. Income

D. Expenses

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Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Identify the correct sequence of accounting process

Answer & Solution

32. Bookkeeping mainly consists of which part of accounting process?

Answer & Solution

33. Auditing refers to

Answer & Solution

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

Answer & Solution

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

Answer & Solution

36. ________ is the first phase of accounting cycle

Answer & Solution

37. ______ is a separate legal entity whose total capital can be divided into many shares

Answer & Solution

38. An asset possesses which of the following?

Answer & Solution

39. Liabilities are which of the following?

Answer & Solution

40. _______ is the gross inflow of economic benefits

Answer & Solution

Read More Section(Accounting)

31.
Identify the correct sequence of accounting process

32.
Bookkeeping mainly consists of which part of accounting process?

33.
Auditing refers to

34.
Which of the following is the external user of financial statements?

35.
Which of the following is the internal user of financial statements?

36.
________ is the first phase of accounting cycle

37.
______ is a separate legal entity whose total capital can be divided into many shares

38.
An asset possesses which of the following?

39.
Liabilities are which of the following?

40.
_______ is the gross inflow of economic benefits