Accounting Questions & Answers - Free Online Practice

911.

A discount that is allowed to encourage a debtor to pay off his debt within a period is the

Annual discount

Trade discount

Periodic discount

Cash discount

Correct answer is D

A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.

912.

When the fixed capital method is used, the partners' share of profits and remunerations are credited to the

Current account

Profit and loss account

Profit and loss appropriation account

Capital account

View answer & explanation

Correct answer is D

The partnership capital account is an equity account in the accounting records of a partnership. It contains the following types of transactions:

Initial and subsequent contributions by partners to the partnership, in the form of either cash or the market value of other types of assets
Profits and losses earned by the business, and allocated to the partners based on the provisions of the partnership agreement
Distributions to the partners

913.

Use the following to answer the given question

\(\begin{array}{c|c} & N & & N \\ \hline \text{Opening stock} & 1,200 & sales & 29,000 \\ Purchases & ? & \text{Less sales returns } & 500 \\ \text{Add. Carriage Inwards} & 300 & & ? \\ \text{Less return outwards} & 1,570 \\ & 28,500 \\ \text{Less closing stock} & 2,220 & \\ \text{Gross Profit(25% of sales)} & 28,500 & & 28,500 \end{array}\)

The goods profit is

N7,425

N7425

N7,625

N7,925

View answer & explanation

Correct answer is A

No explanation has been provided for this answer.

914.

i. The amount of the impurest is the same from one organization to another.
ii. At the end of a fixed period, the petty cashier received a fixed sum of money.
iii. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv. The system is a method by which a measure of control is kept on petty cash expenses.

Which of the following is correct about the impurest system?

II and IV

II, III and IV

I, II and III

III and IV

View answer & explanation

Correct answer is B

The impurest system is a form of financial accounting system. The most common impurest system is the petty cash system. The base characteristic of an impurest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.