Accounts - Principles of Accounts Past Questions and Answers

The fixed amount of money given to a petty cashier at the beginning of a period is called?

A Imprest
B Petty cash
C Float
D Cash advance

Question 192:

A provision for bad debt account had N3,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/2% of annual sales, what was the credit sales for the period?

A N2,100,000
B N844,400
C N840,000
D N500,000

Question 193:

Asa Company bought a vehicle worth N20,000 and the vehicle is to be depreciated at 5%. Using the reducing balance method of depreciation, what would be the value of the asset after 3 years?

A N19,000.00
B N18,050.50
C N17,147.50
D 16,290.13

Question 194:

Chibuike bought 36 notebooks at N10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay?

A N338.58
B N342.00
C N345.42
D N360,00

Question 195:

Depreciation on a particular piece of machinery was N2,700 during the fifth year of its service life and N4,050 during the sixth year. The logical explanation for this is that?

A An addition was made to the asset during the sixth year
B The estimate of salvage value on this equipment was decreased
C A unit-of-output method of depreciation was used during the sixth year
D The estimate remaining service life of the assets was increased at the beginning of the sixth year