The basis upon which assets of an organization is valued is the
A
historical concept
B
business entity concept
C
periodicity concept
D
materiality concept
CORRECT OPTION:
a
2
An accountant must not only be interested in record keeping but also in
A
the application of proffessional competency
B
the accuracy of postings
C
the casting of financial figures
D
effective preparation of balance sheet
CORRECT OPTION:
a
3
The correct posting in a double entry system of account when there is an increase in double assets, expenses, capital or liabilities is to debit
A
capital and debit liabilities
B
liabilities and credit assets
C
assets and credit capital
D
capital and credit assets
CORRECT OPTION:
c
4
The capital of a sole trader can be increased by
A
debiting the capital account
B
crediting the capital account
C
debiting the cash account
D
crediting the cash account
CORRECT OPTION:
c
5
Akirika bought a motor van for his business by cash. The entries are to debit
A
motor van and credit Akirika
B
sales and credit Akrika
C
motor van and credit cash
D
cash and credit motor van
CORRECT OPTION:
c
6
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit
A
sugar account #12,000 and credit Jide #12,000
B
Jide #12,000 and credit sales account #12,000
C
Ibrahim #12,000 and credit Jide #12,000
D
sugar account #12,000 and credit Ibrahim #12,000
CORRECT OPTION:
b
7
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
The record in Jide's book would be to debit
A
purchases #12,000 and credit Ibrahim #12,000
B
purchases #12,000 and credit sugar account #12,000
C
Jide #12,000 and credit purchases
D
Ibrahim #12,000 and sugar account #12,000
CORRECT OPTION:
a
8
In a three-column cash book, dishonored cheques will be shown on the
A
bank column (debit)
B
bank column(credit)
C
cash column(debit)
D
cash column(credit)
CORRECT OPTION:
a
9
Cash can be drawn from the bank using
A
a bank teller
B
a credit card
C
a recharge card
D
ATM card
CORRECT OPTION:
d
10
In a modern day banking system, cash transfer cannot be made where the transferor
A
has no sufficient cash with the bank
B
has no account with the bank
C
does not reside in the bank's country
D
does not possess the domestic currency
CORRECT OPTION:
a
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