Accounts - Principles of Accounts Past Questions and Answers

Which method of pricing can be used satisfactorily in either a rising or falling price situation?

A Standard price
B Marketing price
C FIFO
D Average method

Question 27:

Given:
Capital at start.......................N3250
Capital at close ......................N6250
Additional capital during the period...N1000
Calculate the profit or loss?

A N8500 profit
B N2000 loss
C N2000 profit
D N8500 loss

Question 28:

In a control account, discount received is found on the?

A Debit side of the purchase ledger control account
B Debit side of the sales ledger control account
C Credit side of the purchase ledger control account
D Credit side of the sales ledger control account

Question 29:

In an incomplete record system a trading account cannot be prepared until the?

A Day book has been balanced
B Amount of personal drawings has been established
C Cash book has been balanced
D Amount os sales and purchases has been established

Question 30:

Given an incomplete record without sufficient information to determine profit, the necessary thing to do is to?

A Draw up the statement of affairs
B Draw up a T-account to establish the amount
C Compare the journal entries with the cash book
D Cross-check the cash book for further information