# Principles of Accounting (2017 | Study Mode

Question 11
A
original entry
B
contra entry
C
prime entry
D
contract entry
##### Explanation
contra entry is used to offset amount or same transaction against another on both side of the cashbook

Question 12
A
To record assets and liabilities
B
To update income and expenses
C
to update master files
D
to make organization decision
##### Explanation
The main purpose of organization file is to update the master file of the organization

Question 13
A
complex
B
quantitative
C
relevant
D
qualitative
##### Explanation
first thing to be considered when gathering data is the relevant and usefulness of the data or information before considering the qualitative aspect and other things
Relevant : even if the information of data is not processed, if the processed data is relevant, it will be useful to the user

Question 14
A
I,II and IV
B
I & III
C
I,II and III
D
I, III and IV
##### Explanation
I II and III:Changes will occur in partnership is dissolved amalgamation and changes in profit or loss sharing ratio

Question 15
A
provisional general warrant
B
annual general warrant
C
Reserved expenditure warrant
D
contigencies
##### Explanation
Provisional general warrant is issued by minister to enable money to be released for expenditure for the early of the year before the appropriation Act is passed

Question 16
A
Entrance fees
B
subscription/dues
C
odrinary shares
D
Donations
##### Explanation
Ordinary shares: This type of source of income is only used in profit oriented organization to generate fund the pubic so as to enable the organization make more profit at the end of a specified period

Question 17
A
?4,000
B
?4,500
C
?5,000
D
?1,400
##### Explanation

Question 18
A
current asset
B
current liability
C
fixed asset
D
long term liability
##### Explanation
Current Liability: salaries in arrears fall into the category of them under the current liability because it is benefit due to outsiders but still enjoying by the organisation and can't exceed a year

Question 19
A
?110 000
B
? 80 000
C
? 90 000
D
? 30 000
##### Explanation
$$\begin{array}{c|c} \text{Assets} & N \\ \hline \text{Plant and Machinery} & 190 000 \\ \hline \text{Motor Vehicle} & 170 000 \\ \hline \text{Stock} & 60 000 \\ \hline & 420,000 \\ \hline \text{Less Liabilities} & 50 000 \\ \hline \text{Value / Net worth of the business} & 370,000\end{array}$$

Purchase Consideration less worth of the business
400,000 - N 370,000

= N30,000

Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.

Question 20
A
Unpresented cheque
B
Dividend
C
Uncredited cheque
D
credit transfer
##### Explanation
Uncredited cheque have to be less when starting with balance as per cashbook not add because the cheque are yet to be credited by the bank

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