Which of the following relates to cash basis of accounting?
Accruals and prepayments are considered
Debtors and creditors are recorded
Fixed assets are written off in the year of purchase
Profits are maximized
Correct answer is A
The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. Thus, you record revenue only when a customer pays for a billed product or service, and you record a payable only when it is paid by the company.
The instrument used to release fund which the minister of finance has earlier withheld is
Reserve expenditure warrant
Supplementary general warrant
Provisional general warrant
Supplementary statutory warrant
Correct answer is B
Supplementary general warrant: This is the authority authorizing the account General and the officer controlling expenditure to release fund as contained in the approved supplementary budget.
Which of the following is a source of revenue for a local government?
Personal income tax
Company registration fees
Royalties
Market tolls
Correct answer is D
Local revenue comes from property, sales, and other taxes; dues, fines, charges and fees; and transfers from federal and state governments.
N1,800
N800
N720
N600
N400
Correct answer is E
No explanation has been provided for this answer.
N1,800
N800
N600
N480
Correct answer is C
No explanation has been provided for this answer.