Principles of Accounts 2015 | Study Mode

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Question 41
A
purchase of business account and credit cash account
B
goodwill account and credit purchase of business account
C
cash account and credit goodwill account
D
goodwill account and credit cash account
Explanation
when there is excess of purchase consideration over net assets, the accounting entries is to debit goodwill account as the receiving account and credit purchase of business account as the giving account.

Correct option: B
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Question 42
A
single entry account
B
a profit and loss account
C
a trading account
D
a cash book
Explanation
this is because the income and expenditure account just like the profit and loss account shows the income to ascertain surplus or deficit.

Correct option: B
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Question 43
A
branch stock account
B
defalcations account
C
branch debtors account
D
branch adjustment account
Explanation

Explanation not provided, please join discuss, your contributions are welcomed


Correct option: D
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Question 44
A
financial accounting
B
accounting policies
C
cost accounting
D
accounting conventions
Explanation

Explanation not provided, please join discuss, your contributions are welcomed


Correct option: B
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Question 45
A
creditors
B
debtors
C
motor vehicles
D
goodwill
Explanation
Good will being an intangible asset cannot be seen or touched and are just believed to exist goodwill can only be valued to be a certain amount, the realizable value becomes a difficult task.

Correct option: D
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Question 46
A
the accounting system is error free
B
equal debit entries and credit entries were recorded for each transaction
C
the debit and credit from the journal were posted to the accounts
D
account balances were correctly computed
Explanation
agreement of trial balance does mean it is error free. Some errors might not be disclosed by mere agreement

Correct option: A
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Question 47
A
N11, 700
B
N26, 700
C
N88, 000
D
N85, 000
Explanation
i.e. creditors plus subscription in advance 85000 + 3000 = 88,000

Correct option: C
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Question 48
A
return inward
B
sales figure
C
cost of sales
D
return outward
Explanation
This is so because returns inwards are deducted from sales to ascertain the actual sales made after subtracting defected goods

Correct option: B
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Question 49
A
potential merger candidates for the company
B
appropriate remunerations for the companys staff
C
future cash flows of the company
D
future tax payments of the company
Explanation

Explanation not provided, please join discuss, your contributions are welcomed


Correct option: C
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Question 50
A
N101,000
B
N73,000
C
N79,000
D
N152,000
Explanation
gross profit is sales less cost of sales i.e. N180,000 N79,000 = N101,000

Correct option: A

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