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Accounts - Principles of Accounts Past Questions

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866

The sum of direct cost in a manufacturing account is

  • A. production cost
  • B. prime cost
  • C. total cost
  • D. finance cost
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867

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 asset account; credit asset disposal account
  • D. asset disposal account; credit fixed asset account
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868

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
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869

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
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870

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
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