Principles of Accounting (2017 | Study Mode

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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

Correct option: B
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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

Correct option: C
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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

Correct option: C
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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

Correct option: C
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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

Correct option: A
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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

Correct option: C
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Question 17
A
?4,000
B
?4,500
C
?5,000
D
?1,400
Explanation

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


Correct option: D
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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

Correct option: B
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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.

Correct option: D
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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

Correct option: C

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