ACC 201 CBT Practice

1. A decrease in the value of an asset during revaluation requires a ________ to the Revaluation Account.

2. A party to a joint venture is commonly called a ________.

3. In a consignment, the trader who sends the goods is called the ________.

4. The document containing the terms and conditions agreed upon by partners is known as the ________.

5. Interest on a loan taken by a partner is credited to the ________.

6. In the absence of a partnership agreement, partners shall share profits and losses ________.

7. Partnership is defined by the Partnership Act 1907 as the relation between persons carrying on a business in common with a ________.

8. A joint venture differs from a partnership because it is more ________ in nature.

9. When a new partner joins, assets are often revalued to reflect their ________

10. During dissolution, all non-cash assets are transferred to the ________ Account at their book value.

11. When a partner takes stocks for personal use, the entry is to debit the Partner's Current Account and credit the ________ with the cost.

12. To record royalties due in the lessee's books, the ________ Account is debited.

13. Gas cylinders and crates of soft drinks are classified as ________ containers.

14. If goodwill is to be retained in the books, the entry is to debit the Goodwill Account and credit the ________ of partners.

15. Changes in the structure of a partnership occur due to the admission, retirement, or ________ of a partner.

16. A manufacturer selling products from different spots to maximize sales is operating through ________.

17. ________ commission is an additional reward given to an agent who guarantees the payment of credit sales.

18. Interest on drawings is recorded by debiting the Partner's Current Account and crediting the ________.

19. A ________ invoice is used to indicate the price at which a consignee is expected to sell goods.

20. To ascertain the final profit or loss of a joint venture, a ________ Joint Venture Account is prepared.

21. If there is an increase in the value of an asset during revaluation, the ________ account is credited.

22. The document submitted by the agent to the principal showing sales and expenses is called ________.

23. The advance payment made to a contractor to enable the commencement of a contract is a ________ fee.

24. According to the rules applicable in the absence of an agreement, no partner is entitled to ________ for acting in the firm's business.

25. If a partner provides an advance or loan in excess of their agreed share capital, it attracts interest at a rate of ________ in the absence of an agreement.

26. Dissolution of a partnership can occur due to the ________ of a partner.

27. In hire purchase, the ________ price is the cash price plus the hire purchase interest.

28. ________ goodwill arises internally and is agreed upon by the partners rather than being bought.

29. A partner's share of profit is credited to the ________.

30. When accounting for branches, the Head Office keeps all financial records for ________ branches.

31. The shortfall between actual royalties and the minimum rent is referred to as ________.

32. The rule in ________ (1904) states that a capital deficiency of an insolvent partner should be shared by the solvent partners in their last agreed capital ratios.

33. In the lessor's books, royalties receivable is considered an ________ account.

34. Cans of coke and boxes of matches are examples of ________ containers.

35. Under IAS 41, biological assets (livestock/crops) should generally be measured at ________ less point-of-sale costs.

36. ________ is defined as the reputation or special advantages that enable a business to earn super-normal profit.

37. In contract accounting, the process by which an Architect issues a certificate as evidence of work done is called ________

38. To record interest on capital in the books, the accountant should ________ the Appropriation Account.

39. A ________ is the consideration paid to the owner of a legal right (lessor) for its use by a lessee.

40. A manufacturer selling products from different spots to maximize sales is operating through ________.