Accounts, also called Principles of Accounts by some exam boards, focuses on the organized and thorough recording of a business's financial transactions.
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Question 1:
A general journal contains?
Options:
A) date, narration, folio, debit, and credit
B) date, narration, folio, debit and purchase
C) folio, credit, date, debit and sales
D) debit, credit, narration, date and discount
Show Answer
The correct answer is A .
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Question 2:
Use information below to answer this question.
Capital: opening balance 307,000
Closing balance 342,000
Net profit for the period 121,600
Opening stock 98,800
Purchases 706,000
Carriage inwards 17,500
Cost of goods sold 740,700
Total selling , general and
Administration expenses 526,000
Discount received 9, 650
Calculate the gross profit for the period?
Options:
A) ₦535,650
B) ₦628,300
C) ₦637,950
D) ₦647,600
Show Answer
The correct answer is D .
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Question 3: In order to make the cash book balance equal to the bank statement, it is usual to add?
Options:
A) uncredited cheques
B) direct payments by bank
C) bank charges
D) unpresented cheques
Show Answer
The correct answer is D .
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Question 4: When forming a partnership, new partners should record non-monetary assets on the new partnership's books at?
Options:
A) their current fair market values
B) their historical costs when first use
C) their historical costs when first purchase by each new partner
D) the highest values practical so that future income tax deductions are maximized
Show Answer
The correct answer is A .
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Question 5: Discounts granted branch customers are treated as a debit to branch?
Options:
A) stock account and a credit to branch debtors'account
B) discount account and a credit to branch bank account
C) stock account and a credit to branch bank account
D) discount account and a credit to branch debtors' account
Show Answer
The correct answer is D .
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Question 6: The following are the importance of branch account except
Options:
A) it enable the organization to determine the branch that is making either profit or loss
B) it allows proper control over the branch by the head office
C) it assist the organization to determine the performance of a branch manager
D) it allows fraud and wastage of resources
Show Answer
The correct answer is D .
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Question 7:
Given:
Assets and Liabilities of a Local Government
Bank balance #6,484,000
Cash ₦900,000
General revenue balances #9,774,500
Accrued salaries #1,220,000
Investment in shares #1,480,000
Vehicles #7,620,000
Calculate the liabilities of the local government
Options:
A) #10,994,500
B) #17,394,500
C) #18,774,500
D) #18,874,500
E) #1,220,000
Show Answer
The correct answer is E .
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Question 8: In a trial balance, income and liabilities are?
Options:
A) debited and credited respectively
B) credited
C) credited and debited respectively
D) debited
Show Answer
The correct answer is B .
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Question 9: Which of the following statement is correct about the head office current account and the branch current account?
Options:
A) Both always have debit balances
B) both always have credit balances
C) the head office current account has a credit balance while the branch current account has a debit balance
D) the head office current account has a debit balance while the branch current account has a credit balance
Show Answer
The correct answer is D .
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Question 10:
The following represent extracts from the trading account of a retail outlet for a given month:
Opening stock ₦2,400
Closing stock ₦6,400
Other expenses ₦2,000
Sales ₦11,000
Profit ₦900
What is the purchase figure for the month?
Options:
A) ₦13,000
B) ₦12,100
C) ₦12,000
D) ₦11,200
Show Answer
The correct answer is B .