The basis upon which assets of an organization is valued is the
Answer
(A)
historical concept
2
An accountant must not only be interested in record keeping but also in
Answer
(A)
the application of professional competency
3
The correct posting in a double entry system of account when there is an increase in double assets, expenses, capital or liabilities is to debit
Answer
(C)
assets and credit capital
4
The capital of a sole trader can be increased by
Answer
(C)
debiting the cash account
5
Akirika bought a motor van for his business by cash. The entries are to debit
Answer
(C)
motor van and credit cash
6
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit
Answer
(B)
Jide #12,000 and credit sales account #12,000
7
Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
The record in Jide's book would be to debit
Answer
(A)
purchases #12,000 and credit Ibrahim #12,000
8
In a three-column cash book, dishonored cheques will be shown on the
Answer
(B)
bank column(credit)
9
Cash can be drawn from the bank using
Answer
(D)
ATM card
10
In a modern day banking system, cash transfer cannot be made where the transferor
Answer
(A)
has no sufficient cash with the bank
11
Given:
Cash book balance- #5000
Dishonored cheque- #1000
Direct credit - # 800
Direct debit - # 500
The adjusted cash book balance is
Answer
(A)
#6,300
12
At the end of a financial period, the trading
profit and loss account of a sole trader
shows a profit of #180,000. it is however
discovered that revenue of #15,000 is
recorded as expenses while expenses of
#4,000 is recorded as revenue.
Determine the adjusted net profit
Answer
(B)
#202,000
13
At the end of a financial period, the trading
profit and loss account of a sole trader
shows a profit of #180,000. it is however
discovered that revenue of #15,000 is
recorded as expenses while expenses of
#4,000 is recorded as revenue.
The revenue to be added as an adjustment is
Answer
(B)
#30,000
14
Which of the following is an item of special assets?
Answer
(C)
Trademark
15
1/5/07 Purchased 100 bags of milk at #10.00k each
3/5/07 Purchased 60 bags of milk at #11.50k each
15/5/07 Issued 85 bags of milk
15/5/07 Purchased 180 bags of milk at #12.80K each
22/5/07 Issued 145 bags of milk.
Using FIFO method, what would be the value of stock as at 9/5/07?
Answer
(D)
#750.00
16
1/5/07 Purchased 100 bags of milk at #10.00k each
3/5/07 Purchased 60 bags of milk at #11.50k each
15/5/07 Issued 85 bags of milk
15/5/07 Purchased 180 bags of milk at #12.80K each
22/5/07 Issued 145 bags of milk.
Using simple average method, calculate the value of stock after 22/5/07
Answer
(C)
#1,257.67
17
The LIFO method has an advantage over FIFO in that stocks are valued at
Answer
(B)
current prices
18
In sales ledger control account, returns inwards is usually
Answer
(B)
credited and sales returns debited
19
Purchasers ledger control account can also be referred to as
Answer
(C)
creditors legder
20
Which of the following is a debit item in the sales ledger control account
Answer
(D)
Bills recievable
21
In manufacturing accounts, finance expenses are charged to the
Answer
(C)
profit and loss account
22
Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- # 120
Production volume 4000 units
What is the total manufacturing profit?
Answer
(B)
#120,000
23
Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- # 120
Production volume 4000 units
Determine the value of prime cost
Answer
(B)
#304,000
24
The main advantage of a departmental account is that its
In the head office ledger, the value of goods sent to the branch are
Answer
(B)
debited to the branch current account
28
Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?
Answer
(D)
invoice price
29
The partners capital are: Modibbo #60,000
and Jakata #90,000. The partners share
profit and losses in the ratio of their capital
contributions.
The net profit for the year is #12,000.
Find Modibbo's share of the profit
Answer
(B)
#48,000
30
The partners capital are: Modibbo #60,000
and Jakata #90,000. The partners share
profit and losses in the ratio of their capital
contributions.
The net profit for the year is #12,000.
What is Jakata's sharing profit?
Answer
(D)
1:5
31
In what way can goodwill be written off in a partnership business?
Answer
(A)
Using the partners' profit and loss sharing ratio
32
Ngozi and Musa with a capital of #30,000 each decide to admit Mary into the partnership business with a capital of #20,000 and goodwill #15,000.If the profits and losses are to be shared equally, the journal entries to record goodwill are
Answer
(A)
debit goodwill #15,000, cash #20,000 and credit Mary's capital #35,000
33
In converting a partnership into a limited liability company, the necessary accounts to be opened in the books of the company are
Answer
(B)
Business purchase account, vendor account and ordinary share capital account
34
Given:
1. The Memorandum of Association of the Company
11.The Article of Association of the Company
111. The Incorporation documents
From the above, which of the following is delivered to the Registrar of companies for incorporation
Answer
(B)
1, 11 and 111
35
When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such money is to debit
Answer
(B)
application and allotment account and credit cash
36
Investment at cost of a company is to be disclosed under
