Accounts - Principles of Accounts Past Questions and Answers

The financial position of an organization at a particular time can be ascertained from the

A Statement of sources and application of funds
B Statement of retained earnings
C Balance sheet
D Profit and loss account

Question 17:

Given; Purchases = N20,000 Sales = N40,000 Carriage inwards = N5,000 Carriage outwards = N5,000 Opening stock = N10,000 Closing stock = N5,000 What is the cost of goods sold?

A N30,000
B N25,000
C N20,000
D N15,000

Question 18:

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 19:

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 20:

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