Table of Contents
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1. The profit of a branch is usually credited to the
Answer: Branch office goods account
2. Departmental accounts are maintained to ascertain the
Answer: Contribution of each department
3. In a professional partnership, membership must be between
Answer: 2 and 10
4. Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including
Answer: Interest on loans
5. The debenture issued at par above the nominal value is said to be issued at a
Answer: Premium
6. Questions: The principal use of control accounts is to
Answer: Localize errors within ledgers
7. When a bill is negotiated at the bank, it is said to be
Answer: Discounted
8. Credit sales were debited to Akpana instead of B. Akpan. This is an error of
Answer: Commission
9. The main objective of the accounting report is to provide information about …
Answer: An entity’s management
10. The purpose of using sales ledger balance to cancel off purchases ledger balance is
Answer: Set off
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