Principles of Accounts 2015 | Study Mode

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Question 61
A
fictitious assets
B
liquid assets
C
wasting assets
D
tangible assets
Explanation
preliminary expenses are just like other asset but are unrealizable.

Correct option: A
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Question 62
A
credit sales account and debit Patricks account
B
credit generator account and debit cash account
C
credit sales account and debit cash account
D
credit generator account and debit Patricks account
Explanation
Patrick is receiving and should be debited while generator account is giving

Correct option: D
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Question 63
A
N7950
B
N8050
C
N7050
D
N8950
Explanation
The gross profit percentage of sales would be

20% x N 10,000 = N 2000

If cost of sales + gross profit = N 10,000 = N 2000

:. N 8000 + N 2000 = N 10,000

If cost of goods available for sales less closing stock

= cost of sales

:. N8200 + N200 = N8000

Hence; cost of goods available for sale = opening stock + purchases

:. N8200 = N250 + A

= N 8200 N 250

=N 7950

Correct option: A
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Question 64
A
N1.183
B
N1.025
C
N1.00
D
N1.05
Explanation
simple average method usually add up all receipt prices ahead of the issued material divided by 2

Correct option: B
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Question 65
A
N169, 200
B
N44, 200
C
N55, 800
D
N230, 200
Explanation
The prime cost are direct cost,direct material cost, direct labour cost and direct expenses.

Therefore:

Raw materials (jan)5000

Add purchases 45,000

Less raw materials (dec) 5,800

Cost of raw materials consume 44,200

Prime cost 169,200

Correct option: A
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Question 66
A
cash
B
cheques
C
debtors
D
stocks
Explanation
the income and expenditure account unlike the receipts and payments takes records of accruals and prepayment

Correct option: C
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Question 67
A
revaluation surplus
B
pre-incoporation profit
C
share premium
D
general reserves
Explanation
general reserves is not a form of capital reserves. It is considered as revenue reserves

Correct option: D
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Question 68
A
timeliness
B
accuracy
C
completeness
D
affordability
Explanation
accounting information and report must be accurate, complete and timely. Money spent to obtain an information is not as important as how useful are those information in taking decisions.

Correct option: D
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Question 69
A
periodicity
B
business entity
C
dual aspect
D
going concern
Explanation
This concept is the only one among the listed that assumes that the business will continue to operate for an indefinitely long period of time.

Correct option: D
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Question 70
A
sales
B
carriage outwards
C
gross profit or loss
D
net profit or loss
Explanation
The trading account is primarily prepared to ascertain gross profit or loss.

Correct option: C

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