Financial Past Questions And Answers
Which of the following is found on the credit side of a profit and loss account?
- A. advertising
- B. dividend received
- C. wages and salaries
- D. bank charges
Use the following information to answer the question
The health department of Banjul Local Government incurred the following expenditure in 2020:
| Le | |
Construction of hospital wards | 200,000 |
Purchase of hospital beds | 20,000 |
Purchase of stationeries | 15,000 |
Salaries and wages | 60,000 |
Purchase of drugs | 50,000 |
Purchase of x-ray machine | 100,000 |
The capital expenditure for the year is
- A. Le 125,000
- B. Le 320,000
- C. Le 370,000
- D. Le 455,000
Given:
..............Rich Social Club...........
Cash.........................N100,000
Loan ........................N30,000
Subscription in arrears......N5,000
Subscription in advance......N15,000
What is the accumulation fund?
- A. N60,000
- B. N80,000
- C. N90,000
- D. N110,000
Accounting information is used by investors and creditors of a company to predict
- A. future cash flows of the company
- B. future tax payments of the company
- C. potential merger candidates for the company
- D. appropriate remunerations for the company's staff
Why are adjustments in the profit and loss account necessary?
- A. To cover some expenses of the following year
- B. To ascertain the actual expenses incurred and income earned during the year
- C. To show the provision made during the year
- D. To show the total expenses paid and income received during the year
The costs of acquiring fixed assets and bringing them into the firm is a
- A. general expenses
- B. recurrent expenditure
- C. revenue expenditure
- D. capital expenditure
Verifiability in accounting is only possible when there are?
- A. minutes of meetings
- B. payment vouchers
- C. source documents
- D. audit certificates
Which of the following is the most liquid
- A) stock
- B) debtors
- C) machinery
- D) loose tools
When a new partner is admitted to a partnership, there is a need to revalue the?
- A. capital of the business
- B. capital and liabilities of the business
- C. assets and capital of the business
- D. assets and liabilities of the business
An advantage of FIFO method of stock valuation is that
- A. it serves-as a control during inflation
- B. it is calculated at the end of the year
- C. it is progressive in nature
- D. its flow of cost is in sequence with the flow of stock.