Accounting

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.…

6 years ago

The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is?

A. consistency concept B. prudence concept C. accrual concept D. going concern concept Correct Answer: Option C C. accrual concept…

6 years ago

In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a?

A. surplus B. shortfall C. loss D. deficit Correct Answer: Option D D. deficit Explanation A deficit occurs for a…

6 years ago

A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?

A. D33,000 B. D28,000 C. D23,000 D. D5,000 Correct Answer: Option C C. D23,000 Explanation The petty cash monthly imprest=…

6 years ago

When an asset is sold, the entries for the accumulated depreciation are; debit?

A. assets disposal account; credit provision for depreciation account B. provision for depreciation account; credit asset disposal account C. fixed…

6 years ago

The sum of direct cost in a manufacturing account is?

A. production cost B. prime cost C. total cost D. finance cost Correct Answer: Option B B. prime cost Explanation…

6 years ago

The accounting concept underlying the treatment of personal expenses of the business owner as drawing is?

A. periodicity B. accrual C. entity D. materiality Correct Answer: Option C C. entity Explanation The business entity concept states…

6 years ago

Which of the following items is not contained in the Receipts and Payments Account?

A. Subscription paid in advance B. stock paid for in advance C. outstanding wages and salaries D. donations Correct Answer:…

6 years ago

Which of the following is not an administrative expense in a manufacturing organization?

A. discounts allowed B. office electricity C. stationery D. insurance Correct Answer: Option C C. stationery Explanation Administrative expenses are…

6 years ago

Net profit in a business is?

A. the amount of money taken out of the business by the owner B. the cash in the business bank…

6 years ago