Post Utme Accounts - Principles of Accounts Past Questions and Answers

Question 41:

The trial balance showed wages, ₦2,500 and a note stated that ₦500 wages were due but unpaid. When preparing final accounts and balance sheet, it is required to debit profit and loss account with ____

A. ₦3,000 and show wages accrued ₦500 in the balance sheet
B. ₦2,000 and show ages accrued ₦500 in the balanced sheet.
C. ₦3,000 and show wages prepaid ₦500 in the balance sheet.
D. ₦2,000 and show wages paid in advance ₦500 in the balance sheet.

Question 42:

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

Question 43:

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 44:

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 45:

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