An approach that maintains inventory record on a continous basis whenever there is movement in the level of inventory whether through purchases or sales is……….
a.
LIFO approach
b.
Perpetual inventory..answer
c.
Computerised accounting approach
d.
Relevancy approach
Non-current assets acquired by a business entity are treated as a?
a.
Revenue expenditure
b.
Capital expenditure..answer
c.
Investing activities
d.
Operating activities
Which of this error can affect the balances of the trial balance.
a.
Error of Original entry
b.
Error of ommission
c.
Error of Commission
d.
Error of Transposition..answer
The process of allocating the cost of a wasting assets to the different accounting periods that are expected to benefit from it is called………..
a.
Amortization
b.
Wasting assets
c.
Depletion..answer
d.
Renewable
Profit and loss account is prepared to determine.
a.
Strength of the company
b.
Net profiy..answer
c.
Gross profit
d.
Company\’s performance
Which of the following is an advantage of control account.
a.
It is useful in punishing frausters.
b.
It helps in preparing trading account.
c.
It shows the expenditure of the entity.
d.
It is a useful instrument of fraud prevention and control..answer
The basic three types of inventories are; I)Raw materials II)Work-in-progress Finished goods Iv)Opening stock V)Closing stock
a.
Iv,II,I only
b.
III,IV,V only
c.
I,V,II only
d.
I,II,II only..answer
The cash that is received by an entity for services they are to render or goods they are to deliver in a future accounting period is termed as what?
a.
Income in advance..answer
b.
Discount received
c.
Payables
d.
Receivables
A temporary account where the difference between the debit side and credited side of the trial balance is placed untill the errors that caused the difference are detected and corrected is refers to as what?
a.
Petty cash account
b.
Error accoun
c.
Ledger account
d.
Suspence account..answer
All of the following except one is not a risk that a computerised accounting system can be exposed to.
a.
Speed..answer
b.
Water
c.
Inaccurte data entry
d.
Fire
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