Post Utme Accounts - Principles of Accounts Questions
Question 41:
The trial balance showed wages, ₦2,500 and a note stated that ₦500 wages were due but unpaid. When preparing final accounts and balance sheet, it is required to debit profit and loss account with ____
- A ₦3,000 and show wages accrued ₦500 in the balance sheet
- B ₦2,000 and show ages accrued ₦500 in the balanced sheet.
- C ₦3,000 and show wages prepaid ₦500 in the balance sheet.
- D ₦2,000 and show wages paid in advance ₦500 in the balance sheet.
Question 42:
Which of the following is the effect of an increase in the provision for discount allowed?
- A Increase in net profit
- B Decrease in gross profit
- C Decrease in net profit
- D Increase in gross profit
Question 43:
Why are adjustments in the profit loss account necessary?
- A To cover some expenses of the following year.
- B To ascertain the actual expenses during the year.
- C To show the provisions made during the year.
- D To show the total expenses paid and income received during the year.
Question 44:
A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the ____
- A Weighted average method
- B Simple average method
- C FIFO method
- D LIFO method
Question 45:
Stock valuation is useful because it informs the sales department on the ____
- A Prices of the competing goods
- B Prices that will affect profitability
- C Number of goods to produce
- D Number of goods to sell