Accounts - Principles of Accounts Past Questions and Answers

Which of the following is not correct?

A Increases in asset accounts are entered on the debit side
B Decreases in assets accounts are entered on the credit side
C Increases in liability accounts are entered on the credit side
D Decreases in liability accounts are entered on the credit side

Question 1817:

A business firm incurs labour cost in installing machinery. This should be treated as

A Salaries account
B Machinery account
C Debtors account
D Creditors account

Question 1818:

Use the following information to answer the given question \(\begin{array}{c|c} & N\\ \hline \text{Motor Van} & 120,000\\ \text{Buildings} & 300,000 \\ \text{Stock of goods} & 40,000\end{array}\) In addition, he had cash ofN60,000 out of which N20,000 was borrowed from a friend. The capital of the business is

A N520,000
B N500,000
C N480,000
D N460,000

Question 1819:

Use the following information to answer the given question \(\begin{array}{c|c} & N\\ \hline \text{Motor Van} & 120,000\\ \text{Buildings} & 300,000 \\ \text{Stock of goods} & 40,000\end{array}\) In addition, he had cash ofN60,000 out of which N20,000 was borrowed from a friend. The liabilities of the business amount to

A N80,000
B N60,000
C N40,000
D N20,000

Question 1820:

What is the effect on a firm for making a payment of N10,000 to creditor? its liabilities

A Decrease and its assets decrease
B Increase and its assets decrease
C Decrease and its asseys increase
D Increase and its assets increase