Accounts - Principles of Accounts Past Questions and Answers

When a transaction causes an assets account to increase, there is?

A A decrease of equal amount inthe owner's equity account
B An increase in a liability account
C An increase of equal amonut in another assets account
D A decrease of equal amount in a liability account

Question 147:

N
Bank account 59,410
Capital account 50,000
Purchase account 20,000
Rent 2,500
Stationery 90
typewriter 6,500
Sales 38,000
In preparing a trial from the list of balances given above, what is the total in debit and credit columns?

A N147,910
B N138,500
C N88,500
D N85,800

Question 148:

The purchase of two generators by Hassan Electronics Enterprises should be recorded as?

A An acquistion of fixed assets
B An expenses in its general office expenses account
C An acquistion of stock
D A part of capital in the capital account

Question 149:

If the inventory at the end of the current year is understated and the error is not caught during the following year, the effect is to?

A Overstate income this year and understate in next year
B Understate income this year and overstate in next year
C Understate this year's income with no effect on the next year's
D Overstate the income for the two-year period

Question 150:

The total of the discounts received column in the cash book is posted to the?

A Credit of the discounts received account
B Debit of the discounts allowed account
C Credit of the discounts allowed accoun
D Debit of the discounts received account