Accounts - Principles of Accounts Past Questions and Answers

An expenses is said to be revenue in nature if it

A Adds or contributes to the operating income of the business
B Necessitates the introduction of additional capital
C Reduces the capital of the business
D Adds to or improves the value of fixed assets

Question 142:

An expenses is said to be revenue in nature if it

A Adds or contributes to the operating income of the business
B Necessitates the introduction of additional capital
C Reduces the capital of the business
D Adds to or improves the value of fixed assets

Question 143:

Determine wage expenses from the given information, wages outstanding at the beginning, wages paid during the period 15000 and wages outstanding of the period 2,000

A N16,000
B N17,000
C N13,000
D N14,000

Question 144:

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

A Market price
B Average method
C FIFO
D Standard price

Question 145:

Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Stock} & 11,250 \\
\hline
\text{Debtors} & 18,750 \\
\hline
\text{Creditors} & 3,750 \\
\hline
\text{Bank} & 4,000 \\
\hline
\text{Net profit} & 7,500 \\
\hline
\text{Net} & 60,000 \\
\end{array}\)
Calculate the acid test ratio

A 5 : 1
B 6 : 1
C 6 : 1 : 1
D 4 : 1