Post Utme University of Ibadan Accounts - Principles of Accounts Past Questions and Answers

Question 1:

The process of allocating the cost of an intangible asset over its useful life is known as ___________

A. Depreciation
B. Extraction
C. Depletion
D. Amortization

Question 2:

The profit of a sole trader increases his ___________

A. Stock
B. Asset
C. Liability
D. Capital

Question 3:

The recording of wages due but not yet paid is an example of, an adjustment for ___________

A. Apportionment of revenue between two periods
B. Recognizing accrued expenses
C. Recognizing unaccounted revenue
D. Recognizing prepaid expenses

Question 4:

The trial balance showed wages, N2,500 and a note stated that N500 wages were due but unpaid. When preparing final accounts and balance sheet, it is required to debit profit and loss account with ___________

A. N3,000 and show wages accrued N500 in the balance sheet
B. N2,000 and show ages accrued N500 in the balanced sheet
C. N3,000 and show wages prepaid N500 in the balance sheet
D. N2,000 and show wages paid in advance \(N 500\) in the balance sheet

Question 5:

Which of the following is the effect of an increase in the provision for discount allowed?

A. Increase in net profit
B. Decrease in gross profit
C. Decrease in net profit
D. Increase in gross profit