Financial Past Questions And Answers
A business transaction is recorded in the books of account when the?
- A. owner of the business invests his N10,000 in another company
- B. business retains part of ofits profits for future expansion purposes
- C. business invest applies for overdraft facilities from its bankers
- D. owner of the business collects N5,000 from the accountant
Use the information below to answer question
Total sales of ticket.......................N300 000
Amount received from the sales..............N260 000
Cash purchase of club house.................N100 000
Credit purchase of equipment ...............N60 000
Electricity bill paid ......................N5 000
Salaries owed ..............................N2 000
What is the receipts and payment account balance? What is the balance of the income and expenditure account?
- A. N300 000
- B. N293 000
- C. N193 000
- D. N133 000
Hauwa Ltd bought 10bags of rice for N500 each. The company was given 5% AND 12% trade and cash discounts respectively. What will be recorded as discount received in the company's book?
- A. N250
- B. N570
- C. N600
- D. N850
Given: Drawings - #3,500 Net loss - #2,500 Capital 1/1/2007 - #35,000 Additional capital - #10,000 The adjusted capital as at 31/1/2007 is
- A. #35,000
- B. #39,000
- C. #45,000
- D. #46,000
which of the following affects the accuracy and authenticity of trial balance?
- A. error of ommission
- B. error of commission
- C. error of transposition
- D. error of original entry
The primary or initial documents used to record or capture business transactions immediately they take place is known as:
- A) Debit and credit documents
- B) Receipt
- C) Source documents
- D) Invoice
which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?
- A. decrease in the closing balance of sales ledger control accout
- B. increase in net profit
- C. increase in the value of sales
- D. decrease in the value of purchases in the trading account
In a departmental accounting system, which of the following expenses will most likely be apportioned on the basis of turnover
- A. carriage inwards
- B. carriage outwards
- C. discount received
- D. returns outwards
Why will the capital of a business change?
- A) when wages are paid by cash
- B) when raw materials are purchased on credit
- C) non-current assets are purchased on credit
- D) when a supplier is paid by cheque
Accounts can be classified into
- A. cash and credit transactions
- B. cash and credit accounts
- C. personal and private account
- D. personal and impersonal account