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Question 1:

A company uses the double declining balance method for depreciation. If an asset was purchased for ?1,000,000 and the depreciation rate is 25%, what is the depreciation expense in the second year?

175000 250000 187500 150000

Question 2:

In consignment accounting, the consignor is:

The person who buys the goods The person who receives the goods The person who transports the goods The person who sends the goods

Question 3:

In the context of branch accounting, the term "recording of transactions relating to branch accounts using computers" refers to:

The use of manual ledgers for branch transactions The physical transfer of records between the branch and head office The use of electronic systems for consolidating branch accounts The use of traditional accounting methods without technology

Question 4:

In the written down value method, the depreciation rate is applied to the:

Original cost of the asset Book value at the beginning of the year Salvage value of the asset Market value of the asset

Question 5:

The depletion method of depreciation is commonly used for:

Office equipment Buildings Natural resources Vehicles

Question 6:

When is a provision for bad and doubtful debts adjusted?

After the declaration of dividends Before the preparation of the final accounts At the end of each accounting period When the actual bad debts differ from the estimated amount

Question 7:

The main purpose of a joint venture is to:

Permanently merge the businesses of the co-venturers Create a long-term partnership between the co-venturers Avoid sharing profits and losses Undertake a specific project or business activity

Question 8:

The annuity method takes into account:

The inflation rate The market value of the asset The time value of money The salvage value of the asset

Question 9:

A company has a provision for bad debts at 5% of its debtors, which amount to ?200,000. What is the amount of the provision for bad debts?

10000 15000 20000 5000

Question 10:

If a dependent branch remits ?100,000 to the head office and has sales of ?150,000, what is the closing balance of the branch account in the head office books?

?50,000 (Cr) ?250,000 (Cr) ?50,000 (Dr) ?250,000 (Dr)

Quiz: Financial Accounting