Financial Past Questions And Answers
591
One major advantage of a ledger is that it
- A) is a book of original entry
- B) is only accessible to shareholders during distribution
- C) removes the need for preparing a balance sheet after each transaction
- D) can be used by any type of business
592
The capital of a sole trader can be increased by
- A. debiting the capital account
- B. crediting the capital account
- C. debiting the cash account
- D. crediting the cash account
593
A company goods sent to branch at invoiced price is #30,870 at cost plus 25%. The mark-up is
- A. #20,000
- B. #6,000
- C. #6,174
- D. #10,000
594
A credit balance on a receipt and payments account indicates that the non-profit making organization?
- A. had more revenues than expenses during the period
- B. did not owe much liabilities during the period
- C. received more cash than it paid out during the period
- D. made more cash payments than it received during the period
595
Mrs. Okoro who lives in the riverine community of Rivers State makes her living through crabbing and fishing. This type of occupation is?
- A. commercial
- B. manufacturing
- C. service
- D. Extractive
596
An expenses is said to be revenue in nature if it
- A. adds or contributes to the operating income of the business
- B. necessitates the introduction of additional capital
- C. reduces the capital of the business
- D. adds to or improves the value of fixed assets
597
In manufacturing account, depreciation of office machine is charged to
- A. trading account
- B. appropriation account
- C. balance street
- D. profit and loss account
598
When a bill is negotiated to a bank, it is said be?
- A. surrendered
- B. cashed
- C. discounted
- D. accepted
599
Current assets are shown in the balance sheet in order of performance as
- A. debtors, stock, bank and cash
- B. stock, debtors, bank and cash
- C. stock, bank, debtors and cash
- D. debtors, stock, cash and bank
600
The main features of the single system are that?
- A. books of accounts are not maintained and business relies only on bank statement
- B. the journal records are absent and only the main ledger is kept 7
- C. there are incomplete classifications and recording procedures
- D. only credit sales transactions and credit purchase are recorded