Accounts - Principles of Accounts Questions
Question 6:
When a business incurs labour cost in installing a fixed asset, the cost is treated as
- A Additional cost to the asset
- B Business wages and salaries
- C Installation cost of the asset
- D Business cost of the asset
Question 7:
What is the cardinal rule of the double entry system?
- A Debit the increasing account and credit the decreasing account
- B Debit the receiving account and credit the giving account
- C Debit the asset account and credit the liability account
- D Debit the revenue account and credit the expenditure account
Question 8:
Mallam Gambo bought a freezer for his shop costing N10,500. In recording, he debited office expenses account and credited the bank account. What book-keeping error has he committed?
- A Error of commission
- B Error of reversal of entries
- C Error of principle
- D Compensating error
Question 9:
The use of the folio in the ledger is for
- A Referencing purposes
- B Particulars of the transaction
- C The account titles
- D Only credit items
Question 10:
The suspense account is used to correct book-keeping error where the
- A Amount involved is quite significant
- B Item involved is not material
- C Item involved is unknown
- D Error does not affect the agreement of the trial balance