1
The most important reason for studying accounting is that
A
the information provided by accounting is useful in making decision
B
Accounting plays an important role in the society
C
the study of Accounting leads to challeging career
D
Accounting provides gross profit information
↪ Solution
Correct Option:
A
No further explanations yet...
2
In preparing accounting records, the owner of a business and the business are treated as
B
having business relationship
C
separate legal entities
↪ Solution
Correct Option:
C
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3
Creditors use Accounting information for the purpose of
A
planning sales to a company
B
controlling a company's affairs
D
assessing a company's liquidity
↪ Solution
Correct Option:
D
No further explanations yet...
4
The instrument that are generated when firms enter into business transactions with others are called
↪ Solution
Correct Option:
C
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5
The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as
↪ Solution
Correct Option:
A
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6
The effect of the payment of liability is that it
A
increase both assets and liabilities
B
increase assets and decrease liabilities
C
decrease assets and increase liabilities
D
decrease both assets and liabilities
↪ Solution
Correct Option:
D
No further explanations yet...
7
Books of original entry are used for
A
recording business transactions
B
the adjustment of accounts
C
reminding the book keeping to post transactions in the ledger
D
informing the bookkeeper about the state of affairs
↪ Solution
Correct Option:
A
No further explanations yet...
8
The term 'posting' in Accounting refers to
A
recording entries in the journal
B
transferring the balance in the ledger to the trial balance
C
tracing amounts from the journal to the ledger to find errors
D
transferring entries to the ledger from the journal
↪ Solution
Correct Option:
D
No further explanations yet...
9
Erroneous rearrangement of financial figures such as writing N624 as N 264 is called
↪ Solution
Correct Option:
A
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10
Which of the following demonstrates the imprest system?
A
Float → expenses paid → cash in bank → float
B
Float → cash from bank → expenses paid → float
C
Float → expenses paid→ cash from bank → float
D
Float → cash in bank → expenses paid → float
↪ Solution
Correct Option:
C
No further explanations yet...