Which of these accounts is dissolution expenses credited?
Answer
(D)
Realization account
2
Capital for a profit making organization is generated through
Answer
(B)
shares
3
The account where the profit are distributed to the partner in their profit sharing ratio in partnership
Answer
(B)
appropriation account
4
In manufacturing account, depreciation of office machine is charged to
Answer
(D)
profit and loss account
5
Given:
I. Cash refunds
II. Debit note issued
III. Dishonored cheque
IV. Purchases
The item on the credit side of purchases ledger control account includes
Answer
(D)
I, III and IV only
6
You add the following when starting with the balance as per cash book when preparing the bank reconciliation statement except
If the gross profit is N5 000, what is the net profit?
Answer
(C)
₦5,150
8
Which fund is used to meet unforeseen or urgent expenditure
Answer
(C)
contingencies fund
9
In the period of rising prices, which method of stock valuation is most appropriate?
Answer
(A)
Last in First Out
10
Which of these is the subsidiary book for return inwards?
Answer
(B)
Sales return journal
11
A double entry for a transaction that offsets one amount against another on both sides of the cashbook is a
Answer
(B)
contra entry
12
What is the main purpose of transaction file?
Answer
(C)
to update master files
13
Processed data is only useful to user if it is
Answer
(C)
relevant
14
Changes can occur in partnership when:
i. partnership is dissolved
ii. There is amalgamation of partnership
iii.There is a change in the profit or loss sharing ratio
Iv. Intangible asset increase
Answer
(C)
I,II and III
15
The authority warrant issued prior to the approval of the appropriate bill at the beginning of the year
Answer
(A)
provisional general warrant
16
one of the options below is not the source of income for non- profit organization
When starting with the cash book balance in preparing the bank reconciliation statement, the followings are added
Answer
(C)
Uncredited cheque
21
Which of these is the main source document for recording cash paid into bank?
Answer
(D)
pay-in-slip
22
Given:
I. It records subscription in arrears
II. Payments of liabilities is effected
III. The account does not show if cash payment is revenue or capital expenditure
IV. It performs the same function as cashbook
The features of receipts and payment account includes
Answer
(B)
II,III and IV
23
The movement of goods from head office to a branch is treated in the head office as
Answer
(B)
issue
24
The following are the importance of branch account except
Answer
(D)
it allows fraud and wastage of resources
25
The current growth in the volume of trading and financial dealing in Nigeria is helped by
Answer
(A)
increased financial activities
26
One of the options below have the same features as the profit and loss account in non-profit organization
Answer
(A)
Income and expenditure account
27
Calculate the discount received in Department B
\(\begin{array}{c|c} & \text{Dept A} & \text{Dept B} \\ \hline & N & \\ \hline \text{Sales} & 250 000 & 500 000 \\ \hline \text{Purchases} & 150 000 & 250 000 \\ \hline \text{Discount received} & 24 000 & \\ \hline \text{Discount allowed} & 15 000 & &
\end{array}\)
Answer
(B)
₦15,000
28
An advantage of FIFO method of stock valuation is that
Answer
(D)
its flow of cost is in sequence with the flow of stock.
What is the amount of sales of sales for the year?
Answer
(D)
₦6850
36
Given:
I. Settlement of debts
II. Cessation of business
III. Introduction of assets
IV. Disposal of assets
Which of these constitutes dissolution of partnership?
Answer
(B)
I,II and IV only
37
The use of a three column cash book is determined by
Answer
(A)
cash discount
38
The discount column on the left-hand side of cashbook represents a discount
Answer
(B)
allowed to a debtor
39
Which of the following is used to service all operations of government?
Answer
(A)
Consolidated Revenue Fund
40
The tier of government that uses financial memorandum
Answer
(C)
local government
41
What is the effect of transaction when cash is paid into the bank
Answer
(D)
cash balance decrease and bank balance increase
42
The principle of double entry developed from the axioms of accounting equation is given as
