1. Identifying the correct sequence of accounting process A. Communicating -> Recording -> Identifying B. Recording -> Communicating -> Identifying C. Identifying -> Communicating -> Recording D. Identifying -> Recording -> Communicatin 2. 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 3. Auditing refers to A. Reporting the financial information B. Examination of financial information C. Preparation of financial statements D. Maintaining the ledger accounts 4. 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 5. 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 6. ———is the final 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 7.———-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 8. An asset possess 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 9. Liabilities are which of the following? A. Resources B. ObligationsC. Future benefits D. Expenses 10.——–Is the gross inflow of economic benefits A. Assets B. Liabilities C. Income D. Expenses
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