Question 1 of 20 3,370 total questions
Which of the following is the most liquid?
A land and buildings
B cash at bank
C machinery
D goodwill
E furnitures and fittings
Interest on Johnson's drawing is
A N500
B N300
C N200
D N150
E N100
Which of the following does not belong to the group?
A discount allowed
B salaries and wages
C sundry expenses
D rates and rent
E return inwards
The amount of individual items on a government budget is called
A a vote
B a deposit
C a investment
D a loan
E a grant
which of the following is not a Nominal Account?
A rent
B wages
C discount
D land
E interest
Purchases in accounting refers to goods bought for
A repairs
B owner's use
C resale
D decorating offices
E permanent use
Goodwill is
A a current asset
B a current liability
C a long term liability
D a fictitious asset
E an intangible asset
The equivalent of a club's Receipt and payment account is
A cash account
B revenue account
C trading account
D suspense account
E profit and loss account
The term bad debts means debts
A recorded in wrong account
B owed by an employee
C paid with fake currency
D that cannot be collected
E owed by a supplier
A trial balance is a proof of accuracy of
A transactions
B final accounts
C double entry in the ledger
D trading account
E balance sheet
Cash stolen from branch-taking s is recorded in the Head Office books by debiting
A defalcations account and crediting branch stock acccount
B mark-up account and crediting branch stock account
C defalcations account and crediting profit and loss account
D cash account and crediting branch stock account
E branch stock account and crediting defalcations account
Mark-up on goods sent to branch offices are recorded in the books by creating
A stock adjustment account debiting branch stock account
B goods sent to branch account and debiting branch stock account
C branchh stock account and debiting stock adjustment account
D cash account and crediting branch stock account
E branch stock account and crediting defalcations account
A share is under-subscribed when
A it is offered for sale at less than the nominal value
B it is offered for sale at nominal value
C the number of shares applied for is less than the offer
D it is offered for sale at more thn norminal value
E the number of shares applied for is more than the offer
shares are sold at less than nominal value. They are issued at a
A profit
B loss
C discount
D premium
E par
An excess of the value of the assets over the purchases consideration for acquisition of business is credited to
A general reserve
B capital reserve
C goodwill
D current asset
E share capital
Payment for future services are
A prepayment
B deposit
C accruals
D invesment
E advances
Which of the following is a credit item on an income and expenditure account?
A bar expenses
B electricity
C salaries
D subscription
E rates
Which of the following is not contained in the sales ledger control account?
A receipts from debtors
B returns inwards
C returns outwards
D dishonoured cheque
E discunt allowed
Return inwards was understated. The effect is that
A amount of goods available was understated
B cost of sales was understated
C amount of purchase returns was understated
D amount of sales was understated
E amount of sales returns was understated
Which of the following is true of trade discounts?
A they are recorded in the ledger only
B they are not different from cash discount
C they are recorded in journal onlu
D they are recorded in ledgers and journals
E each discount receives double entries
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