Test Sample Welcome to your Accounting 1. The amount by which assets exceeds liabilities is Deselect Answer capital premium bonus provision None 2. Goods bought on credit are first entered in the Deselect Answer cash book journal proper sales day book purchases day book None 3. An example of fictitious assets is Deselect Answer stock overdraft goodwill profit None 4. A public limited liability company can get additional fund through the issue of Deselect Answer cheque accumulated fund consolidated fund debenture None 5. The short term solvency of a company is determined with ___ ratio Deselect Answer debtors to equity current acid test gross profit margin None 6. Tolu purchased a machine for ₦6,000 on credit. The effect is to debit supplier and credit the account of the Deselect Answer machinery creditor cash debtor None 7. An amount paid in cash to John is Dr to John and Cr to Deselect Answer bank debtors cash capital None 8. A commission of ₦5000 to a sales manager was debited to debtors account. This is an error of Deselect Answer commission principle original entry compensation None 9. The following accounts have debit balances except Deselect Answer share premium rents and rates return inwards advertising None 10. In government accounting, money allocated to each head and sub-heads is referred to as Deselect Answer allocation imprest vote float None 11. The following are causes of discrepancies between the cash book and the bank statement balances except Deselect Answer errors bank charges standing order bank deposit None 12. Pending the location of an error, the difference in the Trial Balance is posted to a __ Deselect Answer control profit and loss appropriation profit and loss suspense None 13. The term "set off" in control account is also called Deselect Answer brought forward contra entry direct transfer bad debt None 14. Rent accrued at the end of an accounting period is a Deselect Answer current asset fixed asset current liability capital None 15. Suppliers accounts are found in the Deselect Answer private purchase nominal general None 16. An example of accounts in the nominal ledger is Deselect Answer debtors drawings creditors machineries None 17. Which of the following is an example of a device that can be used for input, storage, and output in a computer system? Deselect Answer Central processing unit (CPU) Keyboard USB flash drive Monitor None 18. Shares issued free of charge to existing shareholders based on their previous holdings is __ issue Deselect Answer accrued premium floating bonus None 19. The document used in making lodgments into a current account is Deselect Answer paying in -slip cheque book pass book credit card None 20. The return on debenture holding is Deselect Answer share bonus interest net profit dividend None
