Which of the following is the book of original entry for all payments and receipts whether by cash or cheque?
Answer
(C)
cash book
2
Which of the following is not a cause for the difference between bank statement balance and cash book balance?
Answer
(B)
presented cheque
3
A sales journal is used to record
Answer
(C)
credit sales
4
Which of the following fixed assets is not depreciable?
Answer
(C)
land
5
Payment is shown in the Balance Sheet as
Answer
(A)
Current asset
6
Mr. B sod goods worth N200 on credit to Mr. C. Mr. B should debit this to
Answer
(D)
Mr. C's account
7
Mr. B sod goods worth N200 on credit to Mr. C. The credit sales should be entered into
Answer
(A)
sales day book
8
An equipment costing N60,000 was bought on 1st January 1991. Depreciation was provided at 20 percent annually on straight line method. It was straight line method. it was sold on 30th June 1994 for N15,750. Its accumulated depreciation provision provision at the time of sale was
Answer
(B)
N42,000
9
An equipment costing N60,000 was bought on 1st January 1991. Depreciation was provided at 20 percent annually on straight line method. It was straight line method. it was sold on 30th June 1994 for N15,750. The net book value of the equipment at the time sale was
Answer
(D)
N24,000
10
An equipment costing N60,000 was bought on 1st January 1991. Depreciation was provided at 20 percent annually on straight line method. It was straight line method. it was sold on 30th June 1994 for N15,750. In the year of sale, profit was
Answer
(C)
reduced by N12,000
11
Debentures issued at a price above the nominal value are said to be issued
Answer
(B)
at premium
12
A trial balance is
Answer
(C)
list of all balances extracted from the ledger
13
The balance sheet is a statement showing
Answer
(A)
all assets and liabilities
14
Which of the following entries would be made for goods bought and paid for immediately? Debit
Answer
(B)
purchases account; credit cash account
15
The purpose of a trading account is to ascertain
Answer
(B)
gross profit or loss
16
which of the following is not an Appropriation account item for a company?
Answer
(A)
inerest on drawings
17
Factory wages are always entered into the
Answer
(B)
manufacturing account
18
The payee of a cheque is the
Answer
(C)
person naned to receive the amount on the cheque
19
Which of the following is no part of prime cost of production?
Answer
(E)
depreciation of factory equipment
20
The person who has applied for shares in a company is called
Answer
(E)
applicant
21
The total debtors account of a trading concern is N13,000. Out of this 2 percent is irrecoverable; 5 percent of the balance is unlikely to be collected. What is the provision for doubtful debts?
Answer
(B)
N650
22
The total debtors account of a trading concern is N13,000. Out of this 2 percent is irrecoverable; 5 percent of the balance is unlikely to be collected. Bad debts is
Answer
(E)
N260
23
Which of the following are examples of Nominal account?
Answer
(E)
rent and discount
24
A payment of N150 to a credit
Answer
(C)
a reduction in assets and liabilities
25
Which of the following is not charged to Manufacturing Account?
Answer
(C)
Distribution expenses
26
Discount received is shown in the
Answer
(B)
debit side f bought ledger balances
27
Which of the following does not appear in a bank statement?
Answer
(E)
uncredited charges
28
Impersonal Accounts contain
Answer
(C)
real and normal accounts
29
Which of the following is a charge against profit?
Answer
(A)
ordinary dividend
30
The cash realized from the sale of asset on dissolution of partnership is
Answer
(C)
debited to cash account and credited realisation account and credited to realisation account
31
Which of the following does not belong to the group?
Answer
(E)
general reserve
32
The portion of the authorizes capital which has been allotted to members is
Answer
(E)
unissued capital
33
Which of the following is used before the appropriation bill is approved?
Answer
(D)
virement warrant
34
Which of the following is used where virement is not possible and where an application for additional provision reveals a degree of urgency?
Answer
(C)
contigncie warrant
35
A document which acknowledges that a company owes a named person a stated sum of money with the promise that a stated interest rate will be paid periodically is called
Answer
(C)
debenture certificcate
36
Which of the following is not a debit entry in the Bought Ledger?
Answer
(C)
purchases
37
Discount allowed is a charge made against
Answer
(B)
profit and loss acount
38
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Fixed assets} & 12,000 \\ \text{Current assets} & 5,000 \\ \text{Current liabilities} & 2,300 \\ Capital & 10,000 \\ \text{Long term liabilities} & 4,700\end{array}\)
What is the total assets?
Answer
(B)
N17,000
39
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Fixed assets} & 12,000 \\ \text{Current assets} & 5,000 \\ \text{Current liabilities} & 2,300 \\ Capital & 10,000 \\ \text{Long term liabilities} & 4,700\end{array}\)
What is the total net assets?
Answer
(B)
N17,000
40
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Fixed assets} & 12,000 \\ \text{Current assets} & 5,000 \\ \text{Current liabilities} & 2,300 \\ Capital & 10,000 \\ \text{Long term liabilities} & 4,700\end{array}\)
Total liabilities amount to
Answer
(D)
N7,000
41
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Fixed assets} & 12,000 \\ \text{Current assets} & 5,000 \\ \text{Current liabilities} & 2,300 \\ Capital & 10,000 \\ \text{Long term liabilities} & 4,700\end{array}\)
The working capital is
Answer
(E)
N2,700
42
Use the following to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Stock 1/1/93} & 4,500 \\ Sales & 13,500\\ Purchases & 5,000 \\ \text{Carriage inwards} & 500 \\ \text{Stock 31/12/93} & 4,200 \\ \text{Return inwards} & 600\end{array}\)
Cost of sales is
Answer
(C)
N5,800
43
Use the following to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Stock 1/1/93} & 4,500 \\ Sales & 13,500\\ Purchases & 5,000 \\ \text{Carriage inwards} & 500 \\ \text{Stock 31/12/93} & 4,200 \\ \text{Return inwards} & 600\end{array}\)
Net sales is
Answer
(D)
N12,900
44
Use the following to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Stock 1/1/93} & 4,500 \\ Sales & 13,500\\ Purchases & 5,000 \\ \text{Carriage inwards} & 500 \\ \text{Stock 31/12/93} & 4,200 \\ \text{Return inwards} & 600\end{array}\)
Gross profit is
Answer
(E)
N7,100
45
Use the following to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Provision for bad debts} & 1,000 Cr \\ \text{Bad debts} & 500Dr \\ debtors & 50,000Dr \\ \text{Additional bad debts to be written off} & 500 \end{array}\)
New provision for bad debts to stand at 5% of debtors. In the balance sheet, the net figures for the profit is
