Financial Past Questions And Answers
Accrual accounting differs from cash accounting because it recognizes
- A. prepayment and cash
- B. cash and creditors
- C. cash and debtors
- D. debtors and creditors
Use this information below to answer this question.
Trading Account (Extract)
.................N.............................N......
Opening stock...19500........Sales............96 000..
Add purchases...68700.................................
................88200.................................
Less closing stock..?.................................
Cost of goods sold..?.................................
Gross profit C/D....?.................................
....................?..........................?......
The gross profit margin is 20%
What is the gross profit?
- A. N88 200
- B. N76 800
- C. N 19 200
- D. N12 900
Purchasers ledger control account can also be referred to as
- A. sales day book
- B. purchasers day book
- C. creditors legder
- D. debtors ledger
Given:
Capital...............................N2375 000
Debtors...............................N495 000
Motor vehicle.........................N870 000
Creditors.............................N245 000
Prepayment............................N500 000
Bills receivable......................N505 000
Furniture.............................N150 000
What is the total debit for the trial balance?
- A. N4 690 000
- B. N2 620 000
- C. N2 520 000
- D. N1 565 000
Dr. Sales Ledger Control Account . Cr
| N | N | ||
| Bal b/f | 3,250 | Bal b/f | 125 |
| Sales | 19,075 | Bank | 16,387.50 |
Dishonoured cheque | 625 | Discount | 862.50 |
Stopped cheque | 250 | Returns inwards | 325 |
| Bal c/d | 230 | Set off | 900 |
| Bal c/d | 4740 | ||
| 23430 | 23430 | ||
| Bal b/d | 4740 | Bal b/d | 230 |
The amount N19,075 represents
- A. the double entry for the total sales account
- B. total sales for the month
- C. credit sales
- D. cash sales for the month
Use the information below to answer questions
........................1/7/2005............30/6/2006
Drawings.....................................N3 000
Capital.................25 000...............N42 500
Furniture...............6 500...............N10 200
Additional capital during the year amounts to 300% of the drawings.
Calculate the net profit or loss made during the year.
- A. N15 100 profit
- B. N15 100 loss
- C. N11 500 profit
- D. N11 500 loss
Use the information below to answer question .
.........................31 Dec. 05........31 Dec. 06
Total fixed assets.........N7 800............N6 600
Total current assets.......N12 100............N17800
Total current liabilities..N4 700............N3 800
Drawings for 2006 is N5 200.
Determine the capital balance as at Dec. 31,2005?
- A. N20 600
- B. N15 200
- C. N13 800
- D. N11 600
The trading account is to a sole trader what income and expenditure account is to a?
- A. partnership
- B. public limited organization
- C. manufacturing organization
- D. non-profit making organization
The expenses incurred in purchasing a vehicle is a
- A. revenue expenditure
- B. capital expenditure
- C. recurrent expenditure
- D. concurrent expenditure
Where a proprietor withdraws cash from the business for his private use, the entries would be
- A) credit cash account, debit proprietor
- B) credit proprietor
- C) credit proprietor
- D) credit cash account, debit drawings account