The three column cash book is one of the subsidiary books of account used to record cash and bank transactions in addition to: Answer: Discounts received and discount allowed.
An invoice is used to prepare the: Answer: Sales day book.
The documents that are exchanged between buyers and sellers which are binding on both parties are called: Answer: Source documents in accounting.
The purpose of trade discount is to enable the customer to achieve a _____ when the goods are sold. Answer: Profit margin.
___________ can be defined as an inducement given to customers to enable them to buy in large quantities, obtain a profit margin when goods are sold, and/or for prompt payment by debtors. Answer: Discount.
Services and goods that have been consumed or enjoyed during the year but which payment has not been made either in full or in part at the end of that financial year is called: Answer: Accruals.
_____ is a book of original entry used to record all goods sold and services rendered on credit to a third party in the order in which they occurred irrespective of the amount involved. Answer: Sales journal.
The ________ states that profit should not be anticipated when recognizing profit to be recorded in financial statements, but the profit should be based on actual profit earned or realized for the particular period. Answer: Convention of prudence.
________ are principles upon which the preparation of accounting records is based, which are universally acceptable. Answer: Accounting concepts.
______ is a veritable tool that provides relevant information for profit and not-for-profit organizations and other users of financial statements to make informed decisions. Answer: Accounting.
One of the following is not a benefit of a trial balance: Answer: It serves the state of the company’s liquidity.
One of the following is not a user of accounting information: Answer: Law enforcement officer.
A ______ is used to record a business event as they occur throughout the year. Answer: Journal entry.
A contra asset account has what type of balance? Answer: Credit.
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.
The accrual basis of accounting records revenues when they are: Answer: Earned.
What is the main purpose of financial accounting? Answer: To provide useful and financial information to outsiders.
The financial statement that displays the revenues and expenses of a company for a period of time is 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.