Accounting Questions & Answers - Free Online Practice

2,171.

\text{Capital} & 12,700 & \text{Purchases} & 7,100 \\
\hline
\text{Debtors} & 4,000 & \text{Stationery} & 1,900 \\
\hline
\text{Sales} & 2,400 & \text{Wages} & 1,230 \\
\end{array}\)

Determine the closing balance of the cash book?

N655 credit

N655 debit

N130 credit

N130 debit

View answer & explanation

Correct answer is B

No explanation has been provided for this answer.

2,172.

Use the following information to answer the given question.
\(\begin{array}{c|c} & ₦\\ \hline \text{Prime cost} & 4,000\\ \text{Factory overheads} & 6,000\\ \text{Stock on 1/1/09 work-in-progress} & 1,000\\ \text{Stock on 31/12/09 work-in-progress} & 2,000 \\ \text{Returns inwards} & 800 \\ \text{Sales} & 20,000\end{array}\)
Cost of production is

₦10,000

₦9,000

₦8,000

₦6,000

View answer & explanation

Correct answer is B

No explanation has been provided for this answer.

2,173.

The accounting concept underlying the treatment of personal expenses of the business owner as drawing is

Periodicity

Accrual

Entity

Materiality

View answer & explanation

Correct answer is C

The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses.

2,174.

Use the information to answer the question given.

\(\begin{array}{c|c} \text{Cost of motor vehicle - 1\1\12} & ₦ 85,000\\ \text{Residual value} & ₦5,000 \\ \text{Estimated useful lifespan 10 years} & \end{array}\).

The business make use of the straight line method for providing depreciation, the accumulated depreciation as at 31/12/2013 is

₦18,500

₦17,000

₦16,000

₦8,000

View answer & explanation

Correct answer is C

No explanation has been provided for this answer.

2,175.

Which of the following items is not contained in the Receipts and Payments Account?

Subscription paid in advance

Stock paid for in advance

Outstanding wages and salaries

Donations

View answer & explanation

Correct answer is B

Receipts and payments account are used by non profit making organization, It is a summarized form of Cash Book. All receipts are recorded on its left-hand (Debit) side and all payments are recorded on its right-hand (credit) side. receipts & payments accounts show only the cash and bank transactions in that accounting period. it doesnt include stock paid for in advance.