The principle of double entry developed from the axioms of accounting equation is given as
Assets + Liability = Equity
Assets + Equity = Liabilities
Liabilities + Equity = Asset
Liabilities + Equity = Net assets
Correct answer is C
Liabilities + Equity = Asset is given as the fundamental equation
What is the effect of transaction when cash is paid into the bank?
Bank balance decrease and cash balance increase
Bank balance decrease and cash balance decrease
Cash balance increase and bank balance increase
Cash balance decrease and bank balance increase
Correct answer is D
Cash balance decrease and bank balance increase: The cash as leaving the cash till and will be deposited into the bank
The tier of government that uses financial memorandum
Federal government
State government
Local government
Municipal government
Correct answer is C
No explanation has been provided for this answer.
Which of the following is used to service all operations of government?
Consolidated Revenue Fund
Consolidated Reserve Fund
Special Operational Fund
General-Reserve Fund
Correct answer is A
Consolidation revenue fund generate its revenue through allocation from the federation account, court fees and fines etc and is used to finance government operation e g cost, overhead
The discount column on the left-hand side of cashbook represents a discount
Received from a creditor
Allowed to a debtor
Received from a debtor
Allowed to a creditor
Correct answer is B
Allowed to a debtor: the debit side of the cashbook is where all proceeds from sales are recorded and have to be matched with the discount allowed to the debtor /creditor