The principle of double entry bookkeeping states that
- A. every debtor must have a creditor
- B. every account debited must be immediately credited
- C. for every debit entry, there must be a corresponding credit entry
- D. for every double debit, there must be a double credit
A collection of fields relating to one logically definable unit of business information is known as
- A. database
- B. character
- C. byte
- D. record
Which of the following is not a factory overhead cost?
- A. manufacturing wages
- B. factory rent
- C. depreciation of machinery
- D. salary of factory guard
A manufacturing account is drawn up by
- A. firms providing personal services
- B. firms engaged solely in buying and selling of goods
- C. firms which makes and sell articles
- D. non-trading organization
The document prepared by a local/district government to present its annual estimates for a planning period is
- A. a balance sheet
- B. a budget
- C. an income and expendiure account
- D. a cash bppk
Which of the following item is not treated in the profit and loss account?
- A. office expenses
- B. salaries and allowances
- C. carriage inwards
- D. discounts allowed
subscription in advance is classified in the balance sheet as
- A. an asset
- B. a liability
- C. a deficit
- D. a surplus
Use the information to answer the question given.
\(\begin{array}{c|c} \text{Branch stock account (at selling price)} & D346,000 – debit \\ \text{Branch mark-up account} & D62,000 – credit \end{array}\)
The concept applied in calculating the stock figure to be included in the balance sheet at the year end is
- A. matching
- B. consistency
- C. prudence
- D. entiti
Use the information to answer the question given.
\(\begin{array}{c|c} \text{Branch stock account (at selling price)} & D346,000 – debit \\ \text{Branch mark-up account} & D62,000 – credit \end{array}\)
Calculate the stock figure to be included in the balance sheet at the year end
- A. D408,000
- B. D346,000
- C. D284,000
- D. D62,000
Which of the following information is recorded in the returns outwards book?
- A. goods purchased on credit and susequently returned to suppliers
- B. fixed asset bought on credit and subsequently returned to supplier
- C. cash payment received from a customer and subsequently returned to supplier
- D. goods sold to a customer and subsequently returned to the business
The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is
- A. business entity
- B. materiality
- C. dual aspect
- D. realization
An example of input devices of a computer is
- A. an optical character reader
- B. a graph plotter
- C. a visual display unit
- D. a printer
The primary classification of government expenditure is based on
- A. programs
- B. fund
- C. activity
- D. project
When the purchase consideration exceeds the value of business, the difference is
- A. profit
- B. discount
- C. goodwill
- D. reserve
The accounting ratio used to measure the average number of days for which suppliers remain unpaid is
- A. stock turnover
- B. creditor's payment period
- C. debtors collection period
- D. return on capital employed
Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le\\ Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \{text{Interest on capital-6%} & \\ \text{Interest on drawings – 10%} & \end{array}\)
Profit sharing is in the ratio of capital. Bee’s share of profit is
- A. Le 8,000
- B. Le 6,000
- C. Le 4,800
- D. Le 3,200
Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le\\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings – 10%} & \end{array}\).
Profit sharing is in the ratio of capital. Aye;s share of profit is
- A. Le 6,000
- B. Le 4,800
- C. Le 4000
- D. Le 3,200
Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le \\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings – 10%} & \end{array}\)
Profit sharing is in the ratio of capital. The divisible profit is
- A. Le 14,000
- B. Le 12,000
- C. Le 10,000
- D. Le 8,000
Shares issued below nominal value are referred to as shares at
- A. premium
- B. discount
- C. face value
- D. cumulative value
When shares are issued above their nominal value, the excess above the nominal value is
- A. credited to profit and loss account
- B. debited to share premium account
- C. credited to share capital account
- D. credited to share premium account
The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is
- A. constitency concept
- B. prudence concept
- C. accrual concept
- D. going corncern cocept