One major advantage of ledger is that it
- A. is a book of original entry
- B. is only accessible to share holders during liquidation
- C. removes the need for preparing a balance sheet after each transaction
- D. can be used by any type of business
Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account. Which of the following entries properly records the transaction?
- A. Cash account was credited with N500,000 and capital account was debited with N500,000
- B. Bank account was debited with N500,000 and capital account was credited with N500,000
- C. Bank account was accredited with N500,000
- D. Mr. diamond acount was debited with N500,000 and the cheque account was credited with N500,000
Which of the following transaction is BEST recorded in the general journal?
- A. Payment of rent with cheque
- B. Purchase of stock with cash
- C. Purchase of an asset on credit terms
- D. Transfer of cash from head office branch
Given: Motor van, N3,600, Premises, N5,000; Loan from R. Nwaeke, N1,000; Cash at bank; N1,650; stock of goods N4,800; Creditors, N2,560; Cash in hand, N250 and debtors N6,910. calculate the capital figure.
- A. N19,650
- B. N18,650
- C. N17,850
- D. NN16,850
Which of the following accounting records are source documents?
- A. Journal and ledgers
- B. Sales invoice and cash book
- C. Cash book and debit note
- D. sales invoice and debit note
An effective accounting system should provide information
- A. on new product and methods
- B. for cutomer feed back and requirement
- C. on internal and external reporting for managers and third parties
- D. for promoters, directors, labour union and distributors
Which of the following concept stipulates that accounting profit is the difference between revenue and expenses?
- A. Accrual concept
- B. Conservatism concept
- C. Prudence concept
- D. Materiality concept
which of the following factors has aided the development of accounting?
- A. The emergence of nation states
- B. The discovery of mineral resources in commercial quantity
- C. the growth in size of businesses and separation of ownership and management
- D. the development and management of sophisticated monetary system