Subscription in arrears are

• A) credited to the income and expenditure account and shown as a liability in the balance sheet
• B) debited to the income and expenditure account and shown as an asset in the balance sheet
• C) credited to the income and expenditure account and shown as an asset in the balance sheet
• D) debited to the income and expenditure account and shown as a liability in the balance sheet

When is a petty cash account debited?

• 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

Given:

I. Cash refunds

II. Debit note issued

III. Dishonored cheque

IV. Purchases

The item on the credit side of purchases ledger control account includes

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

Which of the following is a correct expression of the accounting equation?

• A) Assets
• B) Assets = Liabilities - Owner
• C) Assets + Owners
• D) Assets = Liabilities - Owner

A company’s profit and loss account for a period is prepared by

• A) deducting total expenses from total revenues
• B) deducting total cash payments from total revenue
• C) deducting all outflows of funds from all inwards of funds
• D) balancing its receipts and payments

A rapidly growing business organization with multiple units that is interested in comparing the performances and weaknesses of each unit should adopt?

• A. manufacturing accounts
• B. consolidated accounts
• C. departmental accounts
• D. joint venture accounts

In government accounting , the method used which records on the basis of financial entity with self balancing books instead of entity of propietorship is?

• A. virement
• B. fund accounting
• C. consolidated fund
• D. financial regulation

In a departmental accounting system, which of the following expenses will most likely be apportioned on the basis of turnover?

• A. carriage outwards
• B. carriage inwards
• C. discounts received
• D. returns outwards

A fixed cost is fixed only in relation to?

• A. the quality of goods produced
• B. the quantity of goods sold
• C. a given period of time and a range of activities
• D. a given period of time and the nature of activity

Interest on a partner's drawings is debited to the

• A) partner's current account and credited to the profit and loss appropriate account
• B) profit and loss appropriation account and credited to the partner's current account
• C) profit and loss account and credited to the partner's account
• D) partner's current account and credited to the profit and loss account