ACC203
The accrual basis of accounting records revenues when they are
Answer: earned
is money spent to acquire or purchase property of permanent nature for individuals and organisations.
Answer: capital expenditure
One of the following is not a user of accounting information.
Answer: law enforcement officer
What is the main purpose of financial accounting?
Answer: provide useful and financial information to outsiders
The documents that are exchanged between buyers and sellers which are binding on both parties are called
Answer: journal
Which statement is not true about reasons for using international accounting standards?
Answer: narrows the areas of difference between companies
One of the following is not a benefit of trial balance.
Answer: it serves the state of company Vs liquidity
Which is an intangible asset?
Answer: goodwill
The external auditing service provided by accountants is to ensure complete and reliable
Answer: financial statement
A is used to record a business event as they occur throughout the year
Answer: journal entry
one of the following is not a liability account.
Answer: cash account
The account format that displays debits, credits, balances, and headings is called
Answer: t- account
Ufedo is a customer of Jason. The balance on Ufedo as account in Ejura’s books is N200 debit. Ufedo sends Ejura a cheque for N50. What is the balance on Ufedo’s account after this transaction?
Answer: sell to other buyers
Computerised accounting system has the following demerits except
Answer: the risk or loss of data is reduced to the barest minimum
The financial statement that displays the revenues and expenses of a company for a period of timeis called
Answer: income statement
The two government recognized accounting professional bodies in Nigeria are:
Answer: association of national accountants of nigeria and institute of chartered accountants of nigeria
A contra asset account has what type of balance?
Answer: credit
There are professional accounting bodies in Nigeria
Answer: 2
Which accounting concept satisfy the valuation criteria?
Answer: going concern, realisation, cost
The state that profit should not be anticipated when recognising profit to be recorded in financial statement, but the profit should be based on actual profit earned or realised for the particular period
Answer: convention of prudence
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