#1-10 Financial Accounting Questions & Answers / CBT Q&A, Exam Questions, Financial Accounting / By hstutorial / August 20, 2021 Please enter your email: 1. The purchase of a motor vehicle N2m is debited into a motor vehicle repairs account. This error is Error of Commission Error of Principle Complete reversal of entries Transportation error Error of Omission 2. Paid Jolape amount owed N3,600 less cash discount of 1% Credit Jolpe’s Account N3,6000 Debit cash Account N3,564 discount received account N36 Debit Jolpe’s account N3,600, Credit cash account N3,564 discount received account N36 Debit Jolpe’s account N3,6000, Credit cash account N3,6000 Credit cash account N3,564, Debit cash account N3,600 None of the above 3. The art of recording Business transaction so that financial positions of an undertaking and its relationship to both its proprietors and outside persons are duly communicated is called. See Also: Suspense Accounts, Errors, and its Corrections Accountancy Accounting Double Entry Book keeping Capital 4. The permanent and continuing diminution in the quality, quantity of value assets from any cause whatsoever is referred to as Amortization Revaluation Depreciation Obsolescence Wear and tear 5. In a bank reconciliation statement, a repurchased bank draft is treated as Bank transfer Unpresented cheque Uncredited cheque Dishonored cheque None of the above 6. If revenue expenditure is erroneously treated as capital expenditure, then the result will be Understatement of current year’s net income Understatement of the following year’s net income Overstatement of the following year’s net income Overstatement of the Current year’s net income Understatement of the currents year’s expenditure 7. The collection of the balance in all the ledger account in one statement is referred to as See Also: Bookkeeping, Accounting and the Double-Entry Principle The final account The balance sheet The trial balance The profit and loss account None of the above 8. When the assert is purchased using cheque or cash Debit the asset account, credit bank / cash account Debit the assets account, Credit supplier account Debit the bank / cash account, Credit the supplier Credit assets Account, Debit bank / cash account None of the above 9. In a circumstance, where the resources of other parties other than the Owners have been invested in the business we have. Assets = Liabilities Fixed Assets + Current Asset – Total Assets Assets = Capital + Liabilities Assets + Capital + Liabilities Working Capital = Current Asset – Current Liabilities 10. Uncle Charles transfer his pickup van valued N117,675 to his business See Also: Bank Reconciliation Statement +Video Guide Debit motor vehicle account N117,765, Credit capital Dudu’ account N117,675 Debit motor vehicle account N117,765, Credit cash account Debit motor vehicle account N117,765 Credit capital account N117,675 Debit Asset account N117675, Credit Bank account N117,675 None of the above Loading …
