Post Utme Accounts - Principles of Accounts Past Questions and Answers

Question 1:

A financial analyst needs accounts
information to ___

A. Maintain the production section of the business
B. Know why transactions cause increases and decreases in asset
C. Advice on how to manage the business
D. Know how to record transactions in account.

Question 2:

Creditors use accounting information for the purpose of ____

A. Planning sales to a company
B. Controlling a company's affairs
C. Investing in a company
D. Assessing a company's liquidity.

Question 3:

In preparing accounting records, the
owners of a business and the business are treated as

A. The same person
B. Having business relationship
C. Separate legal entities
D. Partners.

Question 4:

One of the major features of bookkeeping is that it

A. Provides permanent records for all
financial transactions
B. Is futuristic in nature
C. Accepts responsibility for all wrong posting
D. Does not give room for double entry
procedure

Question 5:

The accounting principle which states that for every debit entry, there is a corresponding credit entry is recognized as ____ concept.

A. Realization
B. Entity
C. Going concern
D. Duality