A public limited liability company can get additional fund through the issue of
Answer
(D)
debenture
5
The short term solvency of a company is determined with ___ ratio
Answer
(C)
acid test
6
Tolu purchased a machine for #6,000 on credit. The effect is to debit.. supplier
and credit the account of the
Answer
(A)
machinery
7
An amount paid in cash to John is Dr to John and Cr to
Answer
(C)
cash
8
A commission of #5000 to a sales manager was debited to debtors account. This is an error of
Answer
(B)
principle
9
The following accounts have debit balances except
Answer
(A)
share premium
10
In government accounting, money allocated to each head and sub-heads is referred to as
Answer
(C)
vote
11
The following are causes of discrepancies between the cash book and the bank statement balances except
Answer
(D)
bank deposit
12
Pending the location of an error, the difference in the Trial Balance is posted to a __
Answer
(D)
suspense
13
The term "set off" in control account is also called
Answer
(B)
contra entry
14
Rent accrued at the end of an accounting period is a
Answer
(C)
current liability
15
Suppliers accounts are found in the
Answer
(B)
purchase
16
An example of accounts in the nominal ledger is
Answer
(B)
drawings
17
Which of the following is an example of a device that can be used for input, storage, and output in a computer system?
Answer
(C)
USB flash drive
18
Shares issued free of charge to existing shareholders based on their previous holdings is __ issue
Answer
(D)
bonus
19
The document used in making lodgments into a current account is
Answer
(A)
paying in -slip
20
The return on debenture holding is
Answer
(B)
interest
21
Issue of prospectus is an invitation to the Public to
Answer
(D)
subscribe for share
22
When shares are over-subscribed, directors may decide to scale down the number of shareholding by alloting shares at ___
Answer
(D)
prorata
23
A list of all debit and credit balances from the ledger accounts are made in the
Answer
(B)
trial balance
24
The net worth of a business is the
Answer
(B)
capital
25
Prime cost consist of direct material and ___ cost
Answer
(B)
direct
26
The amount paid by the buyer of a business which is sold as going concern is
Answer
(A)
purchase consideration
27
The basic accounting equation is
Answer
(C)
Assets + Liabilities = Owner's Equity
28
The chief accounting officer of the Federation is
Answer
(D)
Accountant General
29
The ledger containing the accounts of debtors and creditors is
Answer
(B)
personal
30
#
Stock 1/1/09: Raw materials
2000
Work-in-progress
5000
Stock 31/12/09: Raw materials
500
Work-in-progress
4000
Raw materials purchased
18000
Direct labour
7500
Direct expenses
3000
Factory expenses
10000
The raw materials available for production is ___
Answer
(D)
#38,000
31
#
Stock 1/1/09: Raw materials
20000
Work-in-progress
5000
Stock 31/12/09: Raw materials
500
Work in progress
4000
Raw materials purchased
18000
Direct labour
7500
Direct expenses
3000
Factory expenses
10000
The value of raw materials consumed is
Answer
(D)
#37,500
32
Which of the following bodies regulates accounting practices in Nigeria?
Answer
(D)
ANAN
33
Which of the following is a written acknowledgement of a loan to a company?
Answer
(D)
debenture
34
A method that is beneficial for tax purposes in inflationary times is?
Answer
(A)
LIFO
35
Which of the following is a subsidiary book as well as a ledger?
Answer
(D)
cash book
36
The reward given to debenture holder is
Answer
(A)
interest
37
Ordinary shares are also known as
Answer
(B)
equity
38
A person who prepares, analyses and interprets financial statements is known as a/an
Answer
(C)
accountant
39
Peripherals are used in computer to describe
Answer
(A)
inputs, output and storage devices
40
When manufactured goods are transferred to the trading account at the market price, the difference is credited to the
Answer
(D)
profit and loss account
41
An equipment costing #9,000 has an estimated residual value of #900, and is depreciated at 10% per annum. Using the straight-line method, what is the depreciation charge for the second year?
Answer
(A)
#810
42
An equipment costing # 9,000 has an estimated residual value of #900, and is depreciated at 10% per annum. What is the depreciation charge for the three using diminishing balance method?
Answer
(C)
#729
43
Goodwill is taken into account in partnership business when
Answer
(C)
a new partner is admitted
44
When discount is allowed, the accounting entry is debit discount allowed account and credit ____ account
Answer
(D)
debtor
45
A partner whose liability does not extend beyond the amount of capital contributed by him is known as
Answer
(C)
limited partner
46
Depriciation is?
Answer
(C)
loss in the value of fixed asset
47
Who among the following developed the idea of double entry book-keeping?
Answer
(D)
Francia Luca Pacioli
48
Which of the following is a characteristics of a limited liability company?
Answer
(C)
separated from the owners
49
Peripherals are used in computer to describe
Answer
(D)
inputs, output and storage devices
50
A method of stock valuation is
Answer
(D)
SAP
51
Which of the following bodies regulates accounting practices in Nigeria?
Answer
(A)
ANAN
52
The opening stock at the beginning of an accounting period represents
Answer
(D)
goods available for sale
53
Where there is no partnership agreement, a partner who advances loan to the partnership is entitled to ____ Interest
Answer
(D)
5%
54
Which of the following is not required in preparing a statement of affairs?
Answer
(B)
net profit
55
Which of the following is a subsidiary book as well as a ledger?
Answer
(A)
cash book
56
The permanent memory of a computer is the
Answer
(A)
ROM
57
The coming together of two sole trading businesses to form a partnership is
Answer
(C)
amalgamation
58
Ordinary shares are also known as
Answer
(A)
equity
59
Which of the following is a function of the operating system of a computer?
Answer
(A)
controls the input and output peripherals
60
The value of assets on dissolution of partnership is debited to realization account and credited to ___ account
Answer
(D)
cash
61
Ifedapo Local Council has the following details for 2008
#
Fines
5000
Allocation from state government
20000
Tenement rates
10000
Licences
12000
Hospital beds
8000
Ambulance
13000
Salaries
15000
Vehicles fueling
7000
The council's expenditure was
Answer
(B)
#21,000
62
Ifedapo Local Council has the following details for 2008
#
Fines
5000
Allocation from state government
20000
Tenement rates
10000
Licences
12000
Hospital beds
8000
Ambulance
13000
Salaries
15000
Vehicles fueling
7000
The council's expenditure for the year was
Answer
(D)
#22,000
63
Ifedapo Local Council has the following details for 2008
#
Fines
5000
Allocation from state government
20000
Tenement rates
10000
Licences
12000
Hospital beds
8000
Ambulance
13000
Salaries
15000
Vehicles fueling
7000
The Local Council's revenue for 2008 was
Answer
(A)
#47,000
64
Purchase Ledger Control Account
#
#
Cash paid to debtors
15000
Balance c/d
5000
Bills payable
3000
Purchase journal
30000
Discount receive
2500
Return outward
1500
Sales ledger
1200
Balance c/d
11800
35000
35000
The item sales ledger #1,200 represents
Answer
(B)
amount due from suppliers
65
Purchase Ledger Control Account
#
#
Cash paid to debtors
15000
Balance c/d
5000
Bills payable
3000
Purchase journal
30000
Discount receive
2500
Return outward
1500
Sales ledger
1200
Balance c/d
11800
35000
35000
The amount #30,000 represents
Answer
(C)
credit purchases
66
Purchase Ledger Control Account
#
#
Cash paid to debtors
15000
Balance c/d
5000
Bills payable
3000
Purchase journal
30000
Discount receive
2500
Return outward
1500
Sales ledger
1200
Balance c/d
11800
35000
35000
The balance of #11,800 represents the amount
Answer
(D)
payable to the creditor
67
The following extracts are made from the books of Agama Enterprises.
Motor van (cost)
120000
Life span
4 years
rate of Depreciation
40%
Method of depreciation used is Diminishing Balance The scrap value of the asset at the end of year four is
Answer
(B)
#10,368
68
The following extracts are made from the books of Agama Enterprises.
Motor van (cost)
120000
Life span
4 years
rate of Depreciation
40%
Method of depreciation used is Diminishing Balance The depreciation charge for year two is
Answer
(A)
#28,800
69
#
Stock 1/1/09
2200
Purchases
18000
Sales
27000
Salaries
1500
Rejection in doubtful debts
500
Office expenses
1100
Other expenses
1300
Stock 31/12/09
1000
The cost of goods sold is
Answer
(C)
#19,200
70
#
Stock 1/1/09
2200
Purchases
18000
Sales
27000
Salaries
1500
Rejection in doubtful debts
500
Office expenses
1100
Other expenses
1300
Stock 31/12/09
1000
The net profit is
Answer
(A)
#3,400
71
#
Stock 1/1/09
2200
Purchases
18000
Sales
27000
Salaries
1500
Rejection in doubtful debts
500
Office expenses
1100
Other expenses
1300
Stock 31/12/09
1000
The total expenses is
Answer
(A)
#3,900
72
#
#
Debtors
2000
6000
Stock
1000
1300
Discount allowed
500
Cash received from debtors
10000
Sales for the year is
Answer
(A)
#14,000
73
The following balances was exgtracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007
Stock of raw materials 1 - 1 - 2007
8000
Purchase of raw materials
450000
Stock of raw materials 31 - 12 - 2007
95000
Direct wages
65000
Indirect wages
28000
Depreciation on plants
32000
Factory rent
3500
Work in progress 1- 1- 2007
32500
Work in progress 31 - 12- 2007
37500
The prime cost is
Answer
(A)
#500,000
74
The following balances was exgtracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007
Stock of raw materials 1 - 1 - 2007
8000
Purchase of raw materials
450000
Stock of raw materials 31 - 12 - 2007
95000
Direct wages
65000
Indirect wages
28000
Depreciation on plants
32000
Factory rent
3500
Work in progress 1- 1- 2007
32500
Work in progress 31 - 12- 2007
37500
Factory overhead cost is
Answer
(A)
#63,500
75
The following balances was extracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007
