The need for changes in accounting theory in Nigeria was influenced by the?
Answer
(B)
growh in size of business units
4
A bookkeeping error occurs when there is?
Answer
(D)
incorrect records and oversights that are not intended
5
When a proprietor withdraws cash from the business for private use, he?
Answer
(D)
credits cash account and debits drawings account
6
A basic unifying concept in accounting implies that?
Answer
(A)
where creditors'account is zero, the assets are equal to the owners' equity
7
A source document for the sales day book is?
Answer
(B)
an invoice
8
In a cash book, the opening balance was N7,600, closing balance N9,200 and the total cash received during the period was N18,000. What was the amount of cash paid out during the period?
Answer
(D)
N16,400
9
If the total discount allowed in a cash book was N230 and the total discount received was N255, which of the following is true concerning the two discounts?
Answer
(D)
They should not appear in the trial balance as they were already either received or paid out
10
Which of the following bank reconciliation items should not be added or subtracted from the bank statement balance to determine the adjusted cash balance?
Answer
(D)
Bank error, charging a company for another company's cheque
11
The fixed amount of money given to a petty cashier at the beginning of a period is called?
Answer
(C)
float
12
A provision for bad debt account had N3,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/2% of annual sales, what was the credit sales for the period?
Answer
(B)
N844,400
13
Asa Company bought a vehicle worth N20,000 and the vehicle is to be depreciated at 5%. Using the reducing balance method of depreciation, what would be the value of the asset after 3 years?
Answer
(C)
N17,147.50
14
Chibuike bought 36 notebooks at N10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay?
Answer
(A)
N338.58
15
Depreciation on a particular piece of machinery was N2,700 during the fifth year of its service life and N4,050 during the sixth year. The logical explanation for this is that?
Answer
(A)
an addition was made to the asset during the sixth year
16
The main features of the single system are that?
Answer
(C)
there are incomplete classifications and recording procedures
17
The principal function of a sales ledger control account is to?
Answer
(C)
provide quick information for the preparation of customers' statement
18
In dealing with incomplete records, fixed assets are posted to?
Answer
(C)
closing balance sheets as brought forward figures
19
When the factory cost of production has been ascertained, manufactured goods are transferred to trading account by?
Answer
(D)
crediting manufacturing account and debiting trading account
20
Lawal and co makes blocks and sell to builders.
In computing prime cost, which of the following costs would be considered appropriate?
Answer
(A)
Cement, sand and carriage outwards
21
Manufacturing costs can be classified based on?
Answer
(D)
number of employees, timing of charges and management style
22
The difference between the factory cost of production and the prime cost of production is?
Answer
(B)
direct labour
23
Receipt and payments account of a non-profit making organization is principally a summary of the?
Answer
(B)
cash bok entries
24
Given:
Club N150
Cash sales N4,850
Club debtors at close N900
Cash received from debtors N550
What is the amount of club sales?
Answer
(A)
N6,150
25
A credit balance on a receipt and payments account indicates that the non-profit making organization?
Answer
(D)
made more cash payments than it received during the period
26
Goodwill can be valued in partnership when?
Answer
(D)
a new branch is opened
27
As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?
Answer
(B)
N9,000
28
When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?
Answer
(C)
current account debit balance
29
Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?
Answer
(B)
the partnership is formally ended and new company books opened
30
If a sole proprietorship is purchased for cash, then?
Answer
(A)
the purchaser debits his business purchase account with the consideration he pays
31
The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?
Answer
(D)
call price per share
32
Which of the following events increases a corporation's shareholders equity?
Answer
(A)
Donation of shares out of the corporation's own stock to the corporation
33
If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?
Answer
(A)
preliminary expenses, credit cash accounts
34
Calls in advance are treated in the balance sheet as?
Answer
(B)
current liability
35
Shares issued to a vendor in payment of business purchased would require a debit to?
Answer
(C)
vendor's account and credit to share capital account
36
The best method of allocating expenses among departments is to?
Answer
(B)
charge against each department those costs which are within its control
37
To record the transfer of stock from one department to another, the correct entry would be to debit?
Answer
(D)
department receiving and credit department transfering
38
Use the information below to Answer questions 46 and 47.
Among Limited invoiced goods at a cost of N10,000 to its Ikeja branch at a marginal of 20%. The branch later returned goods worth N1,200 at invoice price to the head office.
The profit marginal should be?
Answer
(D)
credit to branch stock adjustment account
39
What is the correct entry in the head office books at the point of initial transfer of the goods?
Answer
(D)
Goods sent to branch account would be credited with N12,000
40
Capital and revenue expenditures of government are usually accounted for under funds which include?
Answer
(A)
A personal advances, technical, special trust and
41
Which of the following account is kept by local governments in Nigeria?
Answer
(B)
Advances account
42
The conventional sources of public revenue includes?
Answer
(B)
interest, royalties, taxation and loans
43
Appropriation Account
Kudu Wale
Interest on capital 750 550
Salaries 800 600
Share of profits 3,300 3,300
Determine the net profit of the partnership.
Answer
(A)
N 9,300
44
Use the information to answer the question
Aminu and Sons credit purchases (Extract] as at February 1996.
Feb 1Credit balances 40, 000 Debit balances 1, 000
Feb 28 Purchases journal totals 500,000 Returns outwards journal totals 50,000 Cheques paid to suppliers 400,000 Promissory notes sent to suppliers 30,000 Credit balance in the purchases ledger set off against debit balances in the sales ledger 2000
The Total for the purchases ledger control account is
Answer
(D)
N540,000
45
Use the information to answer the question
Aminu and Sons credit purchases (Extract] as at February 1996.
Feb 1Credit balances 40, 000
Debit balances 1, 000
Feb 28 Purchases journal totals 500,000
Returns outwards journal totals 50,000
Cheques paid to suppliers 400,000
Promissory notes sent to suppliers 30,000
Credit balance in the purchases ledger set off against debit balances in the sales ledger 2000
What is the balance c/d in the purchases ledger control account?
