Accounts - Principles of Accounts Past Questions and Answers

The fourth stage of the accounting information system is?

A Recording
B Interpreting
C Summarizing
D Classifying

Question 42:

Use the information below to answer questions
Given:
Returns inwards............N1500
cash.......................N1550
Discount...................N2850
Capital....................N3800
Debtors....................N900
Sundry.....................N?
The value of sundry expenses is 150% of returns inwards plus 50% of debtors.
How much is sundry expenses?

A N2700
B N2250
C N1550
D N2000

Question 43:

Use the information below to answer questions
Given:
Returns inwards............N1500
cash.......................N1550
Discount...................N2850
Capital....................N3800
Debtors....................N900
Sundry.....................N?
The value of sundry expenses is 150% of returns inwards plus 50% of debtors
The total of the trial balance is?

A N6600
B N6650
C N5600
D N5900

Question 44:

If Mr. Ajasin paid his creditors N5000 out of N20 000 owed, what would be the effect of this transaction on the accounting equation?

A A decraese in the total asssets by N5000
B An incraese in the total liabilities and owners' equity by by N15 000
C An increase in the total assets by N15 000
D A decrease in owners' equuity by N5000

Question 45:

One of the benefits of book-keeping records is that they?

A Give prospective investors accurate and direct information for decisions-making
B Provide the public and creditors with details of the operations of an entity
C Give legal backing to all the transactions undertaken by a business entity
D Provide information without which the task of management would be difficult