Accounts - Principles of Accounts Past Questions and Answers

In preparing accounting records, the owner of a business and the business are treated as

A The same person
B Having business relationship
C Separate legal entities
D Partners

Question 22:

Creditors use Accounting information for the purpose of

A Planning sales to a company
B Controlling a company's affairs
C Investing in a company
D Assessing a company's liquidity

Question 23:

On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
At 31/12/93, what portion of that amount was prepaid?

A N14,583
B N25,000
C N35,417
D N37,415

Question 24:

The total of the creditors at the beginning of the year was N4,600 and at the end of the year N5,250. During the year, N26,500 was paid to suppliers and N130 was received in discounts from these suppliers. The purchases for the year would be

A N26,630
B N27,038
C N27,150
D N27,280

Question 25:

In analyzing incomplete records, which of the following should be investigated?

A The general ledger
B The purchases day book and sales day book
C The nature of trading activities and the basis on which goods are sold
D The asset register together with the depreciation schedule