Accounting Basics MCQs (1-10)

Which one of the following statement completely and correctly describes accounting?

Recording, classifying and summarizing economic activities in systematic way

Recording, classifying and summarizing all activities in useful manner

Recording, classifying and summarizing economic activities in informal manner

Accounting is the systematic process of recording social activities only

Correct! Wrong!

The two most common specialized fields of accounting in practice are?

Environmental accounting and financial accounting

Managerial accounting and tax accounting

Managerial accounting and financial accounting

Financial accounting and accounting systems

Correct! Wrong!

AAA stands for?

Australian accounting association

American accounting agency

Asian accounting association

American accounting association

Correct! Wrong!

How many approaches accounting has?

One

Four

Two

Three

Correct! Wrong!

External reporting is the result of?

Financial accounting

Management accounting

Cost accounting

Social accounting

Correct! Wrong!

Accounting is the language of?

School

Business

Proprietor

Management

Correct! Wrong!

Which of the following does not describe accounting?

Financial accounting and accounting systems

Is an end rather than a mean to an end?

Language of business

Useful for decision making

Correct! Wrong!

Which of the following provides information about the financial information’s, obligations and activities on the economic entity that is intended for use primarily by external decision makers?

Tax accounting

Management accounting

Environmental accounting

Financial accounting

Correct! Wrong!

Which of the following user groups required the most detailed financial information?

Investor and potential investors

Government agencies

The management

Lenders

Correct! Wrong!

Which of the following statement is true about purpose of accounting?

Provision of base for decision making is purpose of accounting

The purpose of accounting provide information to manager

All of given statement are true regarding purpose of accounting

Accounting purpose gives quantitative information to economic decision makers

Correct! Wrong!

Which one of the following statement completely and correctly describes accounting?

The two most common specialized fields of accounting in practice are?

AAA stands for?

How many approaches accounting has?

External reporting is the result of?

Accounting is the language of?

Which of the following does not describe accounting?

Which of the following provides information about the financial information’s, obligations and activities on the economic entity that is intended for use primarily by external decision makers?

Which of the following user groups required the most detailed financial information?

Which of the following statement is true about purpose of accounting?

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