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Accounts - Principles of Accounts Past Questions

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2956

Accrual accounting differs from cash accounting because it recognizes

  • A. prepayment and cash
  • B. cash and creditors
  • C. cash and debtors
  • D. debtors and creditors
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2957

The amount of subscriptions accrued is reported in the balance sheet under

  • A. fixed cost
  • B. current asset
  • C. long term liability
  • D. current liability
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2958

One of the major features of book keeping is that it

  • A. is futuristic in nature
  • B. accepts responsibility for all wrong postings
  • C. provides permanent records for all financial transactions
  • D. does not give room for double entry procedure
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2959

Use the information below to answer this question  
                                          ₦
Total current assets        2000
Total fixed assets           4000
Current liabilities            1200
Drawings                         200
Long term loan              2000

Calculate the capital of the business.

  • A. ₦3000
  • B. ₦9400
  • C. ₦3400
  • D. ₦6000
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2960

Use the information below to answer this question  
                                          ₦
Total current assets        2000
Total fixed assets           4000
Current liabilities            1200
Drawings                         200
Long term loan              2000

What is the net working capital?

  • A. ₦1800
  • B. ₦800
  • C. ₦2600
  • D. ₦600
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