Post Utme Accounts - Principles of Accounts Questions
Question 191:
Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than overstates results?
- A Cost
- B Conservatism
- C Monetary
- D Historical
Question 192:
Subscription in arrears are
- A Debited to the income and expenditure account and shown as an asset in the balance sheet
- B Debited to the income and expenditure account and shown as a liability in the balance sheet.
- C Credited to the income and expenditure account and shown as a liability in the balance sheet
- D Credited to the income and expenditure account and shown as an asset in the balance sheet
Question 193:
Which of the following is a strong feature of partnership?
- A Owners are liable personally for all debts of the business
- B The partnership is complex to form because of many legal and reporting requirements.
- C The transfer of ownership interest is frequent and easy to accomplish
- D The life of the partnership is generally assumed to be indefinite
Question 194:
Given: Net Profit #25,000, Cost of sales #25,000, Sales #85,000. Determine the total expenses.
- A #35,000
- B #25,000
- C #45,000
- D #15,000
Question 195:
Which of the following is the basic accounting equation?
- A Liabilities = Assets + Capital
- B Assets = Capital + Liabilities
- C Capital = Assets + Liabilities
- D Assets = Liabilities - Equity