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

________ is the gross inflow of economic benefits?

A. Assets
B. Liabilities
C. Income
D. Expenses

Liabilities are which of the following?

A. Resources
B. Obligations
C. Future benefits
D. Expenses

An asset posses which of the following?

A. Future economic benefits for the business
B. All kind of benefits for the business
C. Expenses for the business
D. Merits and demerits for the business

________ is a separate legal entity that Total capital can be divided in many shares.

A. Partnership
B. Sole proprietorship
C. Company
D. Non-profit organization

Financial statements differ from management account because

A. They are mainly prepared for external users of financial information
B. They are more complex and hard to prepare
C. The are the summary of accounting data
D. The are prepared on basis of actual concept

_________ is the first phase of accounting cycle?

A. Identifying an economic event or transaction
B. Preparing journals
C. Posting entries to ledger accounts
D. Making decisions about business