Given:

I. It records subscription in arrears

II. Payments of liabilities is effected

III. The account does not show if cash payment is revenue or capital expenditure

IV. It performs the same function as cash book

The features of receipts and payment account includes:

• A. III and IV
• B. I, II and IV
• C. II, III and IV
• D. I, II and III

The objective of a trading account is to establish the?

• A. cost of goods sold
• B. gross profit
• C. manufacturing profit
• D. net profit

Which of the following are personal accounts? i. Land and buildings ii. Salaries and wages iii. Debtors iv. Creditors

• A) i and ii only
• B) ii and iii only
• C) iii and iv only
• D) ii and iv only

Why are adjustments in the profit and loss account necessary?

• A. To cover some expenses of the following year
• B. To show the provisions made during the year
• C. To show the total expenses paid and income received during the year
• D. To ascertain the actual expenses incurred and income earned during the year

Salaries in arrears is treated in the balance sheet as a

• A. current asset
• B. current liability
• C. long term liability
• D. fixed asset

In converting a to a partnership company, the loss on asset revaluation is?

• A. debited to the revaluation account
• B. debited to the profit and loss account
• C. credited to the revaluation account
• D. credited to the profit and loss account

Shares issued to a vendor in payment of business purchased would require a debit to?

• A. cash account and credit to share capital account
• B. share capital account and credit to vendor's account
• C. vendor's account and credit to share capital account
• D. share capital account and credit to cash account

The source documents include?

• A. cash book
• B. petty cash book
• C. general ledger
• D. credit notes

If salary account is debited instead of stationery account, the error committed is that of

• A) commission
• B) omission
• C) principle
• D) compensation

The movement of goods from head office to a branch is treated in the in the head office accounts as?

• A. sales
• B. issue
• C. purchase
• D. requisition