Principles of Accounts 2015 | Study Mode

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Question 51
A
can be easily calculated
B
show errors and frauds
C
facilitate decision making
D
are stipulated by law
Explanation
Accounting ratios helps management in taking decision the totality of the activities in an organization

Correct option: C
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Question 52
A
prospectus
B
memorandum of association
C
company law
D
articles of association
Explanation
the article of association center on the rules and regulation governing the internal working of the company. Its totally in line with the question.

Correct option: D
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Question 53
A
deficit
B
surplus
C
discount
D
shortage
Explanation
deficit in a non for profit making organization stands for loss and it is the excess of expenses over bar profit and other income.

Correct option: A
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Question 54
A
omission
B
commission
C
principle
D
original entry
Explanation

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Correct option: A
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Question 55
A
N2, 800
B
N1, 000
C
N2, 500
D
N3, 000
Explanation
Being that debtors balance minus bad debt written off multiplied by 10% and subtracted from the initial provision

28000 3000 = 25,000 X 10% = 2500

:. 2500 1500 = 1,000 (increase in provisions)

Correct option: B
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Question 56
A
N2
B
N0.80
C
N0.60
D
N0.50
Explanation

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Correct option: D
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Question 57
A
N1, 605
B
N8, 45
C
N2, 450
D
N1, 300
Explanation

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Correct option: B
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Question 58
A
appreciation
B
amortization
C
provisions
D
depreciation
Explanation
Depreciation is the reduction in the service potential of an asset as a result of wear and tear.

Correct option: D
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Question 59
A
mortgage it
B
open its account in the ledger
C
turn it to cash
D
give it out as a collateral
Explanation
realization means when assets are disposed for cash as at the time of dissolution

Correct option: C
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Question 60
A
indirect costs may be controlled
B
cost units could gather overhead as they pass through cost centres
C
variable costs may be controlled
D
common costs are shared among cost centres
Explanation
Cost apportionment is the sharing of commonly incurred expenses proportionately where two or more cost centres are involved

Correct option: D

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