Financial Past Questions And Answers
The principle of double entry system ensures
- A. balances at the bank
- B. increase in the assets and liabilities
- C. balance of cashbook
- D. mathematical accuracy in trial balance
Cost of rent as an expense can be apportioned to all department on the basis of:
- A. No of employees
- B. stock value
- C. space occupied
- D. wages
The most important reason for studying accounting is that
- A) the information provided by accounting is useful in making decisions
- B) accounting plays an important role in a society
- C) the study of accounting leads to a challenging career
- D) accounting provides gross profit Information
The value of the sales ledger control account is derived from the summation of
- A. the total debtors' account
- B. the total creditors' account
- C. all day books
- D. both the debtors'and creditors' accounts
Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Stock} & 11,250 \\
\hline
\text{Debtors} & 18,750 \\
\hline
\text{Creditors} & 3,750 \\
\hline
\text{Bank} & 4,000 \\
\hline
\text{Net profit} & 7,500 \\
\hline
\text{Net} & 60,000 \\
\end{array}\)
Calculate the acid test ratio
- A. 5 : 1
- B. 6 : 1
- C. 6 : 1 : 1
- D. 4 : 1
Use the information below to answer question . Adamu Stores bought accessories from Mu'azu Beverages for N400 on credit. A trade discount of 10% and a cash discount of 15% were provided. Calculate the cash discount?
- A. N60
- B. N90
- C. N40
- D. N100
Which of these is the subsidiary book for return inwards?
- A. Sales day book
- B. Sales return journal
- C. Purchases day journal
- D. Cash book
The prime cost is the total of the
- A. direct materials+direct labour+direct wages
- B. production cost+selling expenses
- C. administrative expenses+selling expenses+distribution expenses
- D. direct materials+work overhead expenses
Use the information below to answer this question
A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000.
The yearly depreciation using the straight-line method would be
- A. ₦5200
- B. ₦800
- C. ₦6500
- D. ₦4400
The major feature of an invoice is that, it?
- A. passes information through the sales day book
- B. has cash and bank column
- C. specifies the particular of goods bought
- D. indicates only the cash sales