Principles of Accounting (2017 | Study Mode

Question 41
A
Federal government
B
state government
C
local government
D
municipal government
Explanation

Question 42
A
Bank balance decrease and cash balance increase
B
bank balance decrease and cash balance decrease
C
cash balance increase and bank balance increase
D
cash balance decrease and bank balance increase
Explanation
Cash balance decrease and bank balance increase: The cash as leaving the cash till and will be deposited into the bank

Question 43
A
Assets + Liability = Equity
B
Assets + Equity = Liabilities
C
Liabilities + Equity = Asset
D
Liabilities + Equity = Net assets
Explanation
Liabilities + Equity = Asset is given as the fundamental equation

Question 44
A

9,000

B

2,500

C

3,000

D

1,500

Explanation

$$\begin{array}{c|c} \text{Sales} & & 9000 \\ \hline \text{Stock Jan 1} & 2000 & \\ \hline \text{Purchases} & 4000 & \\ \hline \text{Carriage inwards} & 500 & 6500 \\ \hline \text{Gross profit} & & 2500 \end{array}$$

Question 45
A
Assets = Liabilities + Equity
B
Net assets = Liabilities + Equity
C
Assets + Liabilities = Equity
D
Assets = Equity - liabilities
Explanation
The fundamental accounting equation is Asset = Capital + Liabilities
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business

Question 46
A
current asset
B
current liability
C
fixed asset
D
long term liability
Explanation
current assets are assets of the company that can be easily converted to cash when needed

current liability: this is the liability owned to outsiders but still enjoying its benefit within a year e.g creditors, wages in arrears

Question 47
A
All records relevant to the organisation.
B
Records of assets of the organisation
C
A collection of data items
D
All records relating to employees
Explanation
All record relevant to the organization: the records which are only relevant to the organization such as the name and address as well as summary information such as amount due and year to date sales will be in master file

Question 48
A
treasury receipt
B
receipt voucher
C
payment voucher
D
treasury card
Explanation
Receipt voucher is raised as evidence by revenue collector when government funds and property or received

Receipt voucher: these are vouchers raised as evidence for the receipt of government funds and property. The revenue collected is prepared for the government ministry as a means that revenue has been collected

Question 49
A
public issue
B
bonus
C
right issue
D
dividends
Explanation
Dividend is known as the kind of benefit enjoyed by the shareholder for investing their fund in a particular organisation

Question 50
A
bank account and credit joint venture account
B
expenses account and credit bank account
C
joint venture account and credit expenses account
D
joint venture account and credit bank account
Explanation
Joint venture account is an account that all expenditure incurred for the venture is debited and all income is credited to.
Debit joint venture and credit bank account because expenses incurred on behalf of the venture has to be debited to the joint venture account and since the money is joint out the bank must be credited to balance the account

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