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 891:
Use the information below to answer questions .Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost ................₦1950 000
Dec.31, Addition ............ ₦400 000
Credit:
Jan. 1, Depreciation ........₦1360 000
June 30, Sales proceeds...... ₦700 000
The vehicle sold was purchase on January 1, 1998 at a cost of ₦1,000 000 and had depreciation at 25% on cost.What is the actual profit or loss arising from the vehicle disposed of?
Options:
A) ₦250 000 loss
B) ₦50 000 loss
C) ₦450 000 profit
D) ₦575 000 profit
Show Answer
The correct answer is C .
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Question 892:
Use the information below to answer question .
Capital ...................₦2000
Bank ......................₦1200
Purchase ..................₦2500
Sales .....................₦6700
Stock .....................₦1300
Creditors .................₦1000
Fixed assets...............₦3700
Drawings ..................N?
Drawings are always estimated at 50% of capital.
The trial balance total is?
Options:
A) ₦9700
B) ₦8700
C) ₦7900
D) ₦7800
Show Answer
The correct answer is A .
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Question 893: The account where the profit are distributed to the partner in their profit sharing ratio in partnership
Options:
A) trading account
B) appropriation account
C) balance sheet
D) profit and loss account
Show Answer
The correct answer is B .
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Question 894: In a partnership account, conversation of non-cash assets into cash is referred to as?
Options:
A) realization
B) disposal
C) dissolution
D) revaluation
Show Answer
The correct answer is A .
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Question 895: Akirika bought a motor van for his business by cash. The entries are to debit
Options:
A) motor van and credit Akirika
B) sales and credit Akrika
C) motor van and credit cash
D) cash and credit motor van
Show Answer
The correct answer is C .
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Question 896:
(i) Orientation
(ii) Entity
(iii) Legal status
(iv) Finance.
Which of the characteristics above distinguishes a profit-making from not-for-profit-making organizations?
Options:
A) i, ii, iii and iv
B) i, ii, and iii
C) ii, and iii
D) i and ii
Show Answer
The correct answer is C .
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Question 897:
Lubricating oil and spare parts of machines are example of?
Options:
A) indirect expense
B) direct expense
C) indirect material
D) direct material
Show Answer
The correct answer is B .
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Question 898:
Use the information below to answer question.
Given:
Fixed assets ₦85,600
Sales ₦197,000
Stock ₦34,300
Salaries ₦37,000
Purchases ₦127,700
Share capital ₦120,000
Creditors ₦16, 050
Motor expenses ₦10,500
Debtors ₦25,000
What is the cash balance?
Options:
A) ₦12,095
B) ₦12,590
C) ₦12,905
D) ₦12,950
Show Answer
The correct answer is D .
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Question 899:
The accounting entries for goods stolen in branch will be to debit
Options:
A) profit and loss account and credit branch stock account
B) branch stock account and credit branch adjustment account
C) branch adjustment account and credit profit and loss account
D) branch adjustment account and credit branch stock account
Show Answer
The correct answer is A .
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Question 900: When is a petty cash account debited?
Options:
A) When the fund is established and every time money is spent
B) When the fund is established and every time it is replenished
C) When the fund is established and when the size of the float is decreased
D) Every time money is drawn from the petty cash
Show Answer
The correct answer is B .