Accounting Basics MCQs (1-10)

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

Recording, classifying and summarizing economic activities in informal manner

Recording, classifying and summarizing all activities in useful manner

Recording, classifying and summarizing economic activities in systematic way

Accounting is the systematic process of recording social activities only

Correct! Wrong!

External reporting is the result of?

Cost accounting

Management accounting

Financial accounting

Social accounting

Correct! Wrong!

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

Accounting purpose gives quantitative information to economic decision makers

All of given statement are true regarding purpose of accounting

The purpose of accounting provide information to manager

Provision of base for decision making is purpose of accounting

Correct! Wrong!

AAA stands for?

Asian accounting association

American accounting association

Australian accounting association

American accounting agency

Correct! Wrong!

Accounting is the language of?

Management

School

Business

Proprietor

Correct! Wrong!

Which of the following does not describe accounting?

Is an end rather than a mean to an end?

Language of business

Financial accounting and accounting systems

Useful for decision making

Correct! Wrong!

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

The management

Investor and potential investors

Lenders

Government agencies

Correct! Wrong!

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

Environmental accounting and financial accounting

Managerial accounting and tax accounting

Financial accounting and accounting systems

Managerial accounting and financial accounting

Correct! Wrong!

How many approaches accounting has?

One

Two

Four

Three

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?

Financial accounting

Management accounting

Environmental accounting

Tax accounting

Correct! Wrong!

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

External reporting is the result of?

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

AAA stands for?

Accounting is the language of?

Which of the following does not describe accounting?

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

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

How many approaches accounting has?

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?

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