Financial Past Questions And Answers
The principle of double entry developed from the axioms of accounting equation is given as
- A. Assets + Liability = Equity
- B. Assets + Equity = Liabilities
- C. Liabilities + Equity = Asset
- D. Liabilities + Equity = Net assets
Use the information below to answer the question .
| Total | P | Q | Total | P | Q | ||
| # | # | # | # | # | # | ||
| Stock | 3,000 | 2,000 | 1,000 | Sales | 10,000 | 6,000 | 4,000 |
| Purchase | 4,000 | 2,500 | 1,500 | Closing Stock | 2,000 | 1,500 | 500 |
Goods worth #300 was transferred from department Q to P. Similarly, P’s total expenses for the period was #200.
Department P’s net profit was
- A. #2,500
- B. #2,800
- C. #3,000
- D. #5,200
Given: Net Profit: ?25,000 Cost of sales: ?25,000 Sales: ?85,000 Determine the total expenses
- A) ?45,000
- B) ?35,000
- C) ?25,000
- D) ?15,000
Which of the following rules is applicable in the absence of a partnership agreement? Interest is payable
- A. on drawings at the rate of 5% per annum
- B. on any contribution in excess of agreed capital at 5% per annum
- C. at 5% per annum on the current account balances
- D. on agreed capital contributed at 5% per annum
Retained profits is an example of
- A. Revenue reserve
- B. Capital reserves
- C. General reserves
- D. Loan capital
Branch stock adjustment account is prepared at?
- A. Cost price
- B. new price
- C. invoice price
- D. normal price
Use the information below to answer question .
Capital.....................N?
Profit and loss.............N3500
Current assets..............N?
Current liabilities.........N2000
fixed assets................N11000
Determine the current assets?
- A. N7 000
- B. N6 000
- C. N8 000
- D. N9 000
What is the cardinal rule of the double entry system?
- A. Debit the increasing account and credit the decreasing account
- B. Debit the receiving account and credit the giving account
- C. Debit the asset account and credit the liability account
- D. Debit the revenue account and credit the expenditure account
When a sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as
- A) uncredited cheques
- B) dishonoured cheques
- C) direct remitance to the bank
- D) unpresented cheques
The advantage of double entry is that
- A. it is easy to prepare the final account
- B. it increase assets
- C. has cash and bank column
- D. It disburses cash