Question 1 of 10 50 total questions
Which of the following demonstrates the imprest system?
A Float → expenses paid → cash in bank → float
B Float → cash from bank → expenses paid → float
C Float → expenses paid→ cash from bank → float
D Float → cash in bank → expenses paid → float
Erroneous rearrangement of financial figures such as writing N624 as N 264 is called
A transposition
B principle
C commission
D omission
The term 'posting' in Accounting refers to
A recording entries in the journal
B transferring the balance in the ledger to the trial balance
C tracing amounts from the journal to the ledger to find errors
D transferring entries to the ledger from the journal
Books of original entry are used for
A recording business transactions
B the adjustment of accounts
C reminding the book keeping to post transactions in the ledger
D informing the bookkeeper about the state of affairs
The effect of the payment of liability is that it
A increase both assets and liabilities
B increase assets and decrease liabilities
C decrease assets and increase liabilities
D decrease both assets and liabilities
The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as
A credit note
B debit note
C invoice
D voucher
The instrument that are generated when firms enter into business transactions with others are called
A purchase document
B journals
C source documents
D invoices
Creditors use Accounting information for the purpose of
A planning sales to a company
B controlling a company's affairs
C investing in a company
D assessing a company's liquidity
In preparing accounting records, the owner of a business and the business are treated as
A the same person
B having business relationship
C separate legal entities
D partners
The most important reason for studying accounting is that
A the information provided by accounting is useful in making decision
B Accounting plays an important role in the society
C the study of Accounting leads to challeging career
D Accounting provides gross profit information
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