Accounts - Principles of Accounts Past Questions and Answers

The net profit or loss for the year is determined in profit and loss account after

A Deducting purchases from sales
B Deducting cost of goods sold from sales and adding administrative expenses
C Adding commissions received to gross profit
D Eliminating all expenses from gross profit and adding any other income

Question 17:

If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an

A Income in the profit and loss account
B Income in the balance sheet
C Additional cash in the profit and loss account
D Expense in the balance sheet

Question 18:

Beginning and ending accounts receivable balances were N8,000 and N15,000 respectively. If collections from customers during the period were N36,000, then total sales on account would be

A N23,000
B N29,000
C N36,000
D N43,000

Question 19:

From which of the following sources are creditors control account most likely to be posted?

A Supplier's invoices
B Cash disbursements journal
C Subsidiary debtors ledger
D Purchases journal

Question 20:

Which of the following categories of labour cost will be classified as direct?

A Accountant's salary
B Factory workers' salary
C Managing director's salary
D Cashier's salary