1. Which of the following is a real account?

a. Plant account
b. Salaries account
c. Creditors account
d. Trading account
2. The systematic recording of business transactions in monetary term is ---.
a. auditing
b. book-keeping
c. debiting
d. crediting
3. Sule sets aside from his private funds ₦20,000 for business purposes. The
₦20,000 is referred to as....
a. drawings
b. capital
c. Loan
d. profit
4. In preparing accounting records, the owner of the business and the business are treated
as --------.
a. The same person
b. Having business relationship.
c. Separate legal entities.
d. Family business
5. Which of the following is not a user of accounting information?
a. Employees
b. Shareholders
c. Toddlers
d. Customers
6. Which of the following is not an asset?
a. Debtors
b. Buildings
c. Receivables
d. Payables
7. Which of the following belongs to the nominal ledger?
a. Creditors account
b. Debtors account
c. Salaries account
d. Fixture account
8. Which of the following is a liability?
a. Motor vehicle
b. Creditors
c. Machinery
d. Cash at bank
9. The double entry principle stipulates that every ----- entry requires a
corresponding ------- entry.
a. Debit and debit
b. Golden rules and accounting
c. Debit and credit
d. Creditor and debtor
10. Which of the following is the double entry rule?
a. Credit receiver, credit the giver
b. Debit the giver, credit the giver
c. Debit the receiver, credit the giver
d. Debit the receiver, debit the giver

11........ Is termed the golden rule of accounting.

a. Double entry principle
b. Credit the receiver and debit the giver
c. Ledger
d. Trial balance
12. Which of the following depicts the double entry rule?
a. Credit the receiver and credit the giver
b. None of the above
c. Debit receiver and debit the giver
d. Debit the receiver, debit the giver
13. Which of the following is not a source document?
a. Cheque stub
b. Cash receipt
c. Cash Book
d. Sales invoice
14. Goods returned to a supplier is --------.
a. Debited to returns outward account
b. Credited to returns outward account
c. Debited to returns inward account
d. Credited to returns inwards account
15. Which of the following is not a book of original entry?
a. Sales journal
b. Purchases account
c. Cash book
d. Return inwards journal
16. The sales day book is used to record --------.
a. cash and credit sales
b. credit sales
c. cash sales
d. sales to middlemen
17. Which of the following is both a subsidiary book and a ledger?
a. Sales journal
b. Purchases journal
c. Returns inward book
d. Cash Book
18. A customer who returns goods to the supplier because they are defective is issued a ------
--.
a. debit note
b. credit note
c. delivery note
d. bank note
19. The total of the sales journal is posted to the --------.
a. credit side of the sale ledger
b. credit sides of sale account
c. debit sides of sale ledger
d. debit side of sales account
20. Which of the following is not a subsidiary book?
a. Sales journal
b. Cash Book
c. Purchases ledger
d. General journal
21---------- is an example of source document.
a. Journal
b. Sales day book
c. Cash book
d. Petty voucher
22 -------- are the examples of subsidiary books of account except.
a. Invoices
b. Cash book
c. Journal
d. Reruns inwards day book
23. The account that shows both the cash and bank transactions of an enterprise is -------.
a. Appropriation Account
b. Trading Account
c. Profit and Loss Account
d. Cash Book

24. When both debit and credit entries of a transaction are shown in the cash book, it is
described as --------.
a. contra entry
b. reversal entry
c. double entry
d. single entry
25. A three column cash book contains column for -------.
a. Cash, Assets and liabilities
b. Bank, Cash and Assets
c. Cash, Bank and Returns
d. Discounts, Cash and Bank
26. When goods are sold for cash, the credit entry goes to the --------.
a. Trader's account
b. Cash Book
c. purchases account
d. Sales account
27. A cash book is used to capture -------.
a. Transactions
b. Cash and credit transactions
c. Transactions of diverse nature
d. None of the above
e. Cash and transfer between accounts
28. When goods are sold for cash, the credit entry goes to the ------.
a. Cash book
b. Purchases account
c. Sales account
d. Customer's account
29. The book which has the combination of cash and bank account in one book is called -----
-.
a. Double column cash book
b. Three column cash book
c. Single column cash book
d. Discount column cash book
30. The test of arithmetic accuracy of all posting in the ledger is provided in the -------.
a. Trial balance
b. Cash book
c. Ledger
d. Journal
31. All these are items in a trial balance except ------.
a. Net profit
b. Capital
c. Sales
d. Purchases
32. The statement showing list of balances in a double entry form extracted
from the ledger to test the arithmetical accuracy of the accounts is known as --------.
a. Ledger
b. Cash book
c. Journal
d. Trial balance
33. Which of the following is not the purpose of trial balance?
a. Provide data for the preparation of Trading, profit and loss and balance sheet
b. Provide comprehensive lists of all accounts
c. Prepared to show the financial position of a business at a point in time
d. Show the arithmetical accuracy of the entries in the ledger
34. Which of the following describes a trial balance?
a. It shows the financial position of a business
b. It shows all entries in the books
c. It is a list of balances in the books of account
d. It is the summary of the accounts in the book
35. Unrepresented cheque are -------.
a. That has been recorded in the cash book, but not in the bank
b. That have been received by the bank, but not recorded in the cash book
c. Returned by the bank
d. Written, but not handed over to the customers.
36. Bank reconciliation statement reconciles -------.
a. Bank and cash balance in the cash book
b. Bank balance in the cash book and bank statement balance
c. Cash balance in the cash book and bank statement balance
d. Bank balance brought down and bank balance carried forward.
37. An overdraft would be represented by a -------- balance in a business entity’s cash book.
a. Credit balance
b. Debit balance
c. Cash balance
d. Bank balance
38. Which of the following is not a reason for dishonouring a cheque?
a. Alteration of the cheque
b. Wrong amount
c. Irregular signature
d. Sufficient fund in the account.
39. When preparing a bank reconciliation statement, which of the following is deducted
from the balance as per bank statement?
a. Bank charges
b. Uncredited cheque
c. Credit transfer
d. Dishonoured cheque
40. Which of the following may have been recorded in the cash book but fail to appear bank
statement?
a. Bank charges and commission
b. Cheque issued, presented and cashed
c. Standing order
d. Bank lodgement.
41. An unrepresented cheque for a period of six months and above is regarded as ------.
a. Dishonoured
b. Discredited
c. Stale
d. Rejected
42. The common name given to trading and profit and loss account and
statement of financial position is --------.
a. Final account
b. Balance sheet
c. Income statement
d. Revenue account
43. Sales are credited to....... Account
a. Profit and loss
b. Trading account
c. Gross profit
d. Manufacturing account
44. Trading account is prepared to ascertain -------.
a. Net profit
b. Net loss
c. Gross profit
d. Gross & net profit
45. Bad debt is also known as --------.
a. Unpaid debt
b. Irrecoverable debt
c. Payable debt
d. Loan
46. Which of the following is not a revenue account?
a. Sales
b. Purchases
c. Discount received
d. Interest received
47. Carriage inwards is posted to --------.
a. Trading account
b. Profit and loss account
c. Appropriation account
d. Balance sheet
48. Which of the following does not belong to the group?
a. Discount allowed
b. Salaries and wages
c. Rates and rent
d. Returns inwards
49. Net profit is arrived at in the ---------.
a. Trading account
b. Income statement
c. Profit and loss account
d. Balance sheet
50. The term “accounting period is used to refer to the --------.
a. life’s span during which taxes are paid to the in land revenue board
b. budget period, usually one year, relied on by the accountant
c. time span, usually one year covered by financial statement
d. period within which debtors are expected to settle accounts.
51. The accounting convention which states that ‘profit must not be recognized until
realized while all losses should be adequately provided for is termed ------.
a. materiality
b. objectivity
c. consistency
d. conservatism
52. Accounting information is used by investors and creditors of a company to predict ------
--.
(a) Future cash flows of the company
(b) Future tax payment of the company
(c) Potential merger candidates for the company
(d) Appropriate remunerations for the company’s staff
53. What is the cardinal rule of the double entry system?
a. debit the increasing account and credit the decreasing account
b. debit the receiving account and credit the giving account
c. debit the asset account and credit the liability account
54. Alapo meji bought a freezer for his shop costing #10,500 in recording ,he debited office
expenses account and credited the bank account. What book keeping error has be committed?
a. error of commission
b. error of reversal of entries3 error of principle
c. compensating error
55. The use of the folio in the ledger is for --------.
a. referencing purposes
b. particulars of the transaction
c. the account titles
d. only credit items.
55. The major difference between the receipt and payment account and the income and
expenditure account is that while the former
a. is kept by the treasurer, the later is not
b. deals with all receipts and payments in they ear regardless of the time it related to, the
later is for just at year
c. is a T-account, the letter is not
d. is not in the ledger the later is.

Use the information below to answer questions 56 and 57

A limited liability company has an authorized share capital of #50millions plit into 100million
shares. 80million shares were offered for subscription at 60ks per share payable in full on
application. These have been fully subscribed and issued.
56.What is the nominal value of each share?
a. #2
b. #0.80
c. #0.60
d. #0.50
57. What is the issued capital?
a. #40m
b. #48m
c. #50m
d. #80m

Use the information below to answer questions 59 and 60

Energy Enterprises has two departments, A and B with the following information.
A B
Opening Stock 5,000 1,500
Purchases 26,000 3,000
Closing stock 7,000 2,500
Sales 45,000 4,000
The following expenses are to be shared in the ratio of 4:1. Rent #8,300 General expenses #3,200
58.What was the company’s gross profit for the year?
a. #11,500
b. #12,500
c. #20,000
d. #23,000
59.What is the net profit (or loss) contributed by department B?
a. #2,000
b. (#2,000)
c. (#300)
d. #300
60. Adam’s bank account showed an overdraft of #600 on 31st March.
Ongoing through the account it was discovered that the #1,080 paid into the
account on 29th March had not been credited. What should be the balance
in Adam’s cash accounts?
a. #1,680Dr.
b. #1,080Cr.
c. #600Dr.
d. #480Cr.
61.Sales ledger control account contains the total amount in respect of ------.
a. creditors
b. debtors
c. investors
d. shareholder
62. The starting point for the production of account from incomplete records is to -----------.
a. ascertain the total sales
b. compute the opening stock of goods sold
c. verify the total purchases
d. prepare on opening statement of affairs.
63. The factory cost of goods produced is made up of -------.
a. prime cost and factory overhead
b. prime cost and office overhead
c. raw materials and administrative overhead
Use the information below to answer questions 64 and 65
Passion and Energy are business partners with #30,000 and #20,000 capital
Respectively. At the end of the financial year , a profit of 12,000 which
included passions’ s salary of 3,000 was made.
64. Passion’s share of the profit is ------.
a. #7,500
b. #6,000
c. #5,400
d. #4,500
65.Energy’s share of the profit should be ---------.
a. credited to partner’s capital account
b. credited to purchase current account
c. credited to appropriation account
d. debited to partner’s drawings account.
66. Which of the following ratio gives an idea of the liquidity of a firm?
a. turnover ratio
b. quick ratio
c. debit ratio
d. dividend yield.

Use the information below to answer questions 67 and 68.

EKO Local Government Expenditure
Hospital buildings #200,000;
Drugs#180,000;
Hospital beds and mattresses #40,000
Doctor’s and nurses salaries #120,000;
Administrative expenses#50,000
67.Capital expenditure is -------.
a. #420,000
b. #380,000
c. #240,000
d. #200,000
68.Recurrent expenditure is -------.
a. #390,000
b. #360,000
c. #350,000
d. #170,000

Use the information below to answer questions 69 and 70.

Sales#20,000;
Cost of sales #10,000;
Operating expenses #2,500
Expenses prepaid included in operating expenses #500
69. Calculate the net profit.
a. #12,500
b. #10,000
c. #8,000
d. #7,500
70.What is the gross profit margin?
a. 100%
b. 50%
c. 40%
d. 30%
71.Which of the following is an example of intangible asset?
a. trade debtors
b. stock of goods
c. trade creditors
d. motor vehicles
72.A source document that aids the ascertainment of amount paid out of
current account is the -------.
a. teller
b. cheque stub
c. cheque
d. teller stab
73. The accounting convention which stipulates that money or goods taken
from the business by the owner for personal use should be treated as deductions from
capital is --------.
a. cost
b. prudence
c. consistency
d. entity
74. Recurrent expenditure are expenses for the period not exceeding.
a. 10years
b. 5years
c. 2years
d. 1year
75.In preparing the final accounts, the bad debt account is closed by a transfer to the --------
--.
a. balance sheet
b. provision for bad debt account
c. profit and loss account
d. trading account.

Use the information below to answer questions 76 and 77.

Stock of raw materials (1stJanuary) #3,000;
Direct wages #2,500;
Direct expenses #1,000
Factoryover heads #2,000;
Cost of raw materials used #5,500
Stock of finished goods(31stDecember)#2,000
76.Determine the prime cost.
a. #7,500
b. #6,500
c. #9,000
d. #8,000
77. The cost of goods manufactures is -------.
a. #11,000
b. #12,000
c. #14,000
d. #9,000

Use the information below to answer questions 78 and 79

TOTAL DEPT.P DEPT.Q
Sales 10,000 6,000 4,000
Purchases 4,000 1,000 3,000
Discount received 1,000 ?
Discount allowed 2,000 ?
78.Department P’s share of discount received is -------.
a. #750
b. #1,000
c. #250
d. #500
79.What is department Q’s share of discount allowed?
a. #2,000
b. #1,500
c. #800
d. #1,200
80.The basis upon which assets of an organization is valued is the ------.
a. historical concept
b. business entity concept
c. periodicity concept
d. materiality concept.
81.Energy bought a motor van for his business by cash.The entries are to debit.
a. motor van and credit energy
b. sales and credit energy
c. motor van and credit cash
d. cash and credit motor van
82. Given: Cashbook balance #5,000;
Dishonoured cheque #1,000;
Direct credit #800
Direct debit #500 the adjusted cash book balance is
a. #6,300
b. #4,300
c. #3,700
d. #2,700
83. Purchases ledger control account can also be referred to as -------.
a. sales day book
b. purchases sales daybook
c. creditors ledger
d. debtors ledger
Use the information below to answer questions 84 and 85
Purchases #44,880;
Sales #85,850;
Trade creditors #12,250;
Trade debtors #24,000;
Accrued expenses #350;
Prepaid expenses #700;
Stock1/ 1/2006 #25,120;
Stock31/1/2006 #27,840
84. Calculate the acid test ratio.
a. 1.94:1
b. 1.96:1
c. 1:1.94
d. 1:1.96
85. Determine the number of times stock was turned over during the period to the nearest
figure.
a. 1
b. 2
c. 3
d. 4
86. The accounting convention which states that he performance of a business should be
determined by matching all expenses against all revenues is --------.
a. accruals
b. materiality
c. objectivity
d. periodicity
87 Cash discount is often recorded on -------.
a. the debit side of the cashbook
b. the credit side of the cashbook
c. the folio column of the cashbook
d. both credit and debit side of the cashbook

Use the following below to answer questions 88 and 89

Jan1:Received 1,000units at #10each
Jan2: Received 2,000 units at #12each
Jan3: Issued 1,500 units
Jan4: received 1,000units at #11 each
Jan5: Issued 1,000units
88. Using FIFO method, what is the value of the closing stock?
a. #34,000
b. #29,000
c. #17,000
d. #12,000
89. What is the value of closing stock using simple average?
a. #11,500
b. #17,000
c. #17,500
d. #28,500
90. Which of the following is a debt item in the purchases ledger control account?
a. balance b/ d
b. cheque dishonoured
c. purchases
d. Balance c/d
Given:
Furniture and fittings 20,000
Equipment 15,000
Bank overdrafts 6,500
Bar creditors 4,800
Subscription to arrears 4,700
Subscription in advance 650
91. What is the accumulated fund?
a. #23,700
b. #27,750
c. #29,650
d. #51,650
92. The book value per share is obtained by dividing ------ by ------.
a. share holder equity by outstanding shares
b. total assets by outstanding shares
c. gross profit by outstanding shares
d. net profit by outstanding shares
93. Replacement and renewal of fixed assets are ------.
a. revenue receipt
b. capital receipt
c. capital expenditure
d. revenue expenditure
94. If salary account is debited instead of stationery account, the error committed is that of
-------.
a. commission
b. omission
c. principle
d. compensation
95. If stationery bought for #200 has been entered as #2,000.To correct this error
a. debit stationery with #2,200
b. credit stationery with #1,800
c. debit stationery with #1,800
d. debit stationery with #2,200
96. Benefits enjoyed for which payments have not been made are ------.7
a. accruals
b. prepayments
c. acquisitions
d. provisions

Use the information below to answer questions 97 and 98

SALES LEDGER CONTROL ACCOUNT
Balance c/d 87,000; discount allowed 40,000;
Credit sales ?; Bills receivable #50,000;
Bills receivable dishonoured #58,000; cash receivable #280,000;
Dishonoured cheques #50,000; Returns inwards 30,000; Balancec/d ?
Credit sales is given at 60% of cash received
97.What is the balance c/d?
a. #333,000
b. #234,000
c. #343,000
d. #243,000
98.Calculate the value of credit sales.
a. #558,000
b. #484,000
c. #448,000
d. #584,000
99. The act establishing the institute of Chartered Accountants of Nigeria (ICAN) came into
force on
a. 1st September,1960
b. 1st October,1960
c. 1st October,1963
d. 1st September,1965
100. The total of the discounts received column in the cashbook is posted to the ---------.
a. Credit of the discounts received account
b. Debit of the discounts allowed account
c. Credit of the discount allowed account
d. Debit of the discounts received account
101. State bank collected a note for Al-Makura company. This collection, not
yet recorded in Makura’s books, appears on the bank reconciliation as ------.
a. An addition to balance per books
b. A deduction from balance per bank statement
c. An addition to balance per bank statement
d. A deduction from balance per books
102. Responsibility accordingly is particularly concerned with ------.
a. Historical accounting
b. Controllable costs
c. Store keeping
d. Valuation of stocks
103. A business transaction is recorded in the books of accounts when the
a. owner of the business invests his #10,000 in another company
b. Business retains part of its profits for future expansion purposes
c. Business applies for overdraft facilities from its bankers
d. Owner of the business collects#5,000from the accountants
104. When a transaction causes an asset account to increase there is
a. a decrease of equal amount in the owner’s equity
b. an increase in a liability account
c. an increase of equal account in another as set account
d. a decrease of equal amount in a liability account
Bank account #59,410
Capital account #50,000
Purchases account #20,000
Rent #2,500
Stationery # 90
Typewriter #6,500
Sales #38,000
105. In preparing a trial balance from the list of balances given above, what is the total In
debt a credit columns?
a. #147,910
b. #138,500
c. #88,500
d. #85,800
106. The purchase of two generators by Hassan electronics enterprises should be recorded
as -------.
a. an acquisition of fixed assets
d. an expense in its general of fice expenses column
c. an acquisition of stock
d. a part of capital in the capital account
107. When the factory cost of production has been as certained, manufactured goods are
transferred to trading accounts by ------.
a. debiting manufacturing account and crediting trading account
b. crediting sales account and debiting trading account
c. debiting sales account and crediting trading account
d. crediting manufacturing account and debiting trading account
108. The bad debt account is closed by transferring the balance to -----.
a. credit of capital account
b. debit of profit and loss
c. debit of the debtor’s personal account
d. credit of profit and loss account
109. A credit note from a supplier would first be entered in the ------.
a. purchase book
b. sales book
c. returns inward book
d. returns outward
110. Where a proprietor withdraws cash from the business for his private use, the entries
would be -------.
(a) credit cash account, debit proprietor’s account
(b) credit proprietor’s account, credit cash account
(c)credit proprietor’s account, debit drawings account
(d) credit cash account, debit drawing account
111. Which of the following is a long term liability?
a. bank overdraft
b. bank deposit
c. good will
d. debentures
112. Which of the following is a function of the sales journal?
a. It record both cash and credit sales
b. It shows the balance in the sales account
c. It record credit sales only
d. It shows the aggregate balance in the debtor’s ledger
113. Which of the following is the most liquid?
a. stock
b. debtors
c. machinery
d. loosetools
114. A debtor balance on a bank statement indicates that the ------.
a. bank is a debtor to the customer
b. customer is a debtor to the bank
c. bank is a not a creditor to the customer
d. customer is a not a debtor to the bank
115. At the end of a trading period, wages due will be -----.
a. debited to trading account and shown as a current liability
b. credited to profit and loss account and shown as a current liability
c. credited to trading account and shown as a current asset
d. debited to profit and loss account and shown as a current liability
116. Which of the following is NOT an asset ?
a. Good will
b. General reserves
c. Debtors
d. Prepayments
117. A company profit and loss account for a period is prepared by --------.
a. deducting total expenses from total revenues
d. deducting total cash payments from total revenue
c. deducting all outflows off unds from all in flows off unds
d. balancing its receipts and payments
118. The journal is a book --------.
a. of prime entry to which all transactions are entered before posting
b. kept by journalist for reporting events
c. of prime entry to which postings are made from the ledger
d. of analyzing major accounts
119. The receipts and payments of a club is the same as ------.
a. profit and loss account
b. trading account
c. cash account
d. control account
120. In a balance sheet bank overdraft is ---------.
a. current asset
b. fixed asset
c. long term liability
d. current liability
121. Money set aside for the servicing of business overheads is referred to ----.
a. capital expenditure
b. capital receipts
c. revenue expenditure
d. revenue receipts
122. Money spent on buying plots of land by a firm is -------.
a. capital expenditure
b. capital receipts
c. revenue expenditures
d. revenue receipts
123. Prepaid expenses is an item in ------.
a. fixed assets
b. current assets
c. current liability
d. long term liabilities
124. Final accounts consist of --------.
(i) cashbook
(ii) trading account
(iii) profit and loss account
(iv)balance sheet
a. I only
b. I and ii only
c. iii and iv only
d. ii and iii only
125. Trading account is prepared to ascertain --------.
a. gross profit
b. net profit
c. gross profit or gross loss
d. net profit or net loss
126. A statement that shows the financial position of a business is -------.
a. profit and loss account
b. trading account
c. statement ofi ncome
d. balance sheet
127. Prepaid wages is an item in the
(i)balance sheets
(ii)profit and loss accounts
(iii)trading account
(iv)cash account
a. I, ii and iii only
b. I and iii only
c. I and ii only
d. ii iand iv only
128. Partnership is a business owned and controlled by -------.
a. two members
b. two to ten persons
c. two to twenty persons
d. two to five persons
129. If a machine cost #2,000 and its estimated life span is 10years; and is residuals is #500.
They early value of depreciation is -------.
a. #250
b. #180
c. #150
d. #130
130. Bad debt is also known as ------.
a. unpaid debt
b. irrecoverable debt
c. payable debt
d. current debt
131. Bad debt is an item in -------.
a. trading, profit and loss account
b. consignment account
c. balance sheet
d. receipt and expenditure account
132. The primary or initial documents used to record business transactions immediately
they take place is known as --------.
a. Debit and credit documents
b. Receipt
c. Source documents
d. Invoice
133. The dairy of events in which all financial transactions recorded for easy reference and
to assist in the double entry system is --------.
a. ledger
b. journal
c. purchases and sales daybooks
d. debit and credit documents
134. Which of the following is not a book of original entry?
a. cashbook
b. purchases journal
c. sales journal
d. ledger
135. The test of arithmetical accuracy of all postings in the ledger is provided in the ------.
a. journal
b. day book
c. cash book
d. trial balance
136. Errors revealed by the trial balance include error of ------.
(a) principle
(b) single entry
(c) omission
(d) commission
137. Accounting equation is given by
a. Assets–liabilities + owner’s equity
b. Assets=Liabilities– Owner’s Equity
c. Assets+Owner’sEquity=liabilities
d. Assets=liabilities+Owner’sEquity
138. Which of the following is not a current asset?
a. stock
b. debtors
c. creditors
d. cash
139 .Final accounts of a company refers to --------.
a. Trading and profit and loss account
b. Profit and loss account and balance sheet
c. Trading account and balance sheet
d. Trading, profit and loss account and balance sheet
140. A cheque which has been sent but has not yet gone through the bank account of the
receiver of it is known as -------.
a. Dishonoured cheque
b. Unpresented cheque
c. Uncredited cheque
d. Unhonoured cheque
141. Which of the following does not appear in a bank statement?
a. Uncredited cheque
b. Bank charges
c. Dishonoured cheques
d. Dividend received on behalf of customer
142. Where a correct amount is entered, but in the wrong person’s account, is an error of --
-------.
a. principle
d. Omission
c. commission
d. compensation
143. A credit balance of #350,000 in a cash account shows that ----------.
a. #350,000 was the total cash received
b. #350,000 was the total cash paid out cash at hand equals
c. #350,000
d. #350,000 was the cash over spent
144. Another name for straight line method of depreciation is --------.
a. Reducing balance method
b. Diminishing balance method
c. Fixed installment method
d. Revaluation method
145. Which accounting concept states that revenues and expenses are
recognized as they are earned or incurred and not when money is received?
a. Entity
b. Realization
c. Accrual
d. Periodicity
146. Which of the following is not a form of business asset?
a. Deposit account in bank
b. Interest due on loan
c. Five acres of land
d. Library books owned by a lawyer
147. Prime cost is --------.
a. direct cost of production
b. cost of raw materials consumed
c. cost of raw materials purchased
d. indirect cost of production
148. Subscription received in respect of a future period is --------.
a. subscription deposit
b. subscription in advance
c. accrued subscription
d. subscription in arrears