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

Question 6:

Why are adjustments in the profit loss account necessary?

A. To cover some expenses of the following year
B. To ascertain the actual expenses during the year
C. To show the provisions made during the year
D. To show the total expenses paid and income received during the year

Question 7:

A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the ___________

A. Weighted average method
B. Simple average method
C. FIFO method
D. LIFO method

Question 8:

Stock valuation is useful because it informs the sales department on the ___________

A. Prices of the competing goods
B. Prices that will affect profitability
C. Number of goods to produce
D. Number of goods to sell

Question 9:

Which of the following stock valuation methods is suitable under inflationary conditions?

A. FIFO
B. LIFO
C. Simple average
D. Weighted average

Question 10:

In the absence of a sales day book or sales account, credit sales can be computed from ___________

A. Creditor control account
B. Debtors' control account
C. Opening figures of the balance sheet
D. Closing figures of the balance sheet