A quality of accounting information is that it should be
Answer
(B)
verifiable
2
When the letter "C" is written in front of an entry in the folio column of a cash book, it shows a
Answer
(C)
contra entry
3
To show the evidence of payment to a government ministry, the revenue collector issues a
Answer
(B)
payment voucher
4
The primary concern of shareholders in a business is the
Answer
(B)
dividend payable
5
ln a not-for-profit organization, the accumulated fund is
Answer
(A)
current assets plus fixed assets less total liabilities
6
Use the following information to answer questions the question below
01/01/17 31/12/17
Trade creditors 630,000 780,000
Stock 540,000 480,000
Trade creditors
Stock
Cash paid to trade creditors in 2017 was N2,700,000. 00
The cost of goods sold was?
Answer
(B)
N2,910,000
7
Use the following information to answer questions the question below
01/01/17 31/12/17
Trade creditors 630,000 780,000
Stock 540,000 480,000
Trade creditors
Stock
Cash paid to trade creditors in 2017 was N2,700,000. 00
What was the purchase for 2017
Answer
(B)
N2,850,000
8
In public sector accounting, salaries of employees are classified as
Answer
(C)
recurrent expenditure
9
Kadiri paid his debt to Suleman by cheque. The accounting entries in Kadiri s books are: debit
Answer
(C)
Suleman's Account; credit
Bank Account
10
The concept which seeks to prevent profits from being overstated is
Answer
(C)
prudence
11
Use the following information to answer question below
April 11:Sold goods for cash N50,000
April 20: Bought goods for cash N30,000
April 26: Bought postage stamp N5,000
April 28: Cash sales N49,000
April 29: Cash purchases N11,000
April 30: Paid salaries N18,000
Total cash receipts for the period is
Answer
(A)
N99,000
12
Use the following information to answer the question below
April 11: Sold goods for cash N50,000
April 20: Bought goods for cash N30,000
April 26: Bought postage stamp N5,000
April 28: Cash sales N49,000
April 29: Cash purchases N11,000
April 30: Paid salaries N18,000
The cash balance at the end of the period is
Answer
(C)
N35,000
13
Goodwill is recognized in partnership when
Answer
(B)
the business has adequate bank balance
14
The directors of Olu Ltd. recommended a dividend of 10% on 1,000,000 ordinary share capital of N2.00 each. The amount of dividend declared is
Answer
(A)
N200,000
15
The mark-up on a product is 2/3. The margin is
Answer
(B)
2/5
16
Quick ratio is calculated as X-y:z, where
Answer
(C)
x=current assets; y= stock and z=current labilities
17
Use the following information to answer the question below
Opening capital ---10,800
Drawings----------- 2,500
Trade creditors ----2,560
Trade debtors ------2,880
Cash in hand -------1,000
Net profit------------- 6,000
The closing capital is
Answer
(B)
14,300
18
Use the following information to answer the question below
Opening capital ---10,800
Drawings----------- 2,500
Trade creditors ----2,560
Trade debtors ------2,880
Cash in hand -------1,000
Net profit------------- 6,000
The working capital is
Answer
(D)
1,320
19
In a single-entry accounting, purchases are ascertained using a
Answer
(D)
creditors control account
20
Goods bought from Sanmah for Le1,600 was entered into Shamail's Account. This is an error of
Answer
(B)
commission
21
When closing stock is undervalued, the cost of goods sold would be
Answer
(A)
overstated and the gross profit understated
22
Where fixed capital account is maintained, partners Share of profit is transferred to the
Answer
(C)
credit side of partner's current account
23
When bank charges are deducted from a customer's account, the balance on the bank statement would be
Answer
(B)
less than the cash book balance
24
Companies issue shares to the public in order to
Answer
(C)
raise capital
25
Sulah took two textile materials worth N500 from his business for his children's use. This would be treated as
Answer
(C)
drawings
26
Use the following information to answer the question below
Ajem and Ogah were in partnership sharing profits and losses in the ratio 2:3. Interest on capital and drawings were 5% and 3% respectively. The following details relate to the partnership for the year 2017.
Ogah Ajem
Capital Account 60,000 65,000
Current Account 40,000 50,000
Drawings 20,000 30,000
Salary 10,000 -
Netprofit was 100,000
Ogah's share of profit was
Answer
(A)
51,150
27
Use the following information to answer the question below
Ajem and Ogah were in partnership sharing profits and losses in the ratio 2:3. Interest on capital and drawings were 5% and 3% respectively. The following details relate to the partnership for the year 2017.
Ogah Ajem
Capital Account 60,000 65,000
Current Account 40,000 50,000
Drawings 20,000 30,000
Salary 10,000 -
Netprofit was 100,000
Ajem's current account balance was
Answer
(D)
40,000
28
Interest on drawings amounted to
Answer
(B)
1,500
29
Debtors Control Account is kept in the
Answer
(A)
sales ledger
30
Where there is provision for depreciation, fixed asset is shown in the balance sheet at
i. cost less depreciation for the period only.
ii. cost less total depreciation to date.
iii. written down values
Answer
(D)
i and iii only
31
The partner whose liability goes beyond his capital is a
Answer
(B)
general partner
32
An effect of increase in the provision for depreciation is
Answer
(C)
increase in gross profit
33
Uncredited cheques refer to cheques not yet credited
Answer
(A)
in the cash book
34
Interim dividend paid in a year is
Answer
(A)
debited to the Income Surplus Account/ Profit and Loss Appropriation Account
35
A feature of government accounting is that the
Answer
(B)
objective is to report profit made by the government
36
Use the following information to answer the question below
Cost of raw materials available------ 32,000
Manufacturing wages -----10,000
Factory expenses-----5,000
Royalty-------3,000
Factory rent ------2,000
Depreciation of plant and machinery---- 5,000
closing stock of raw materials-------- 3,000
The prime cost is
Answer
(C)
$42,000
37
Use the following information to answer the question below
Cost of raw materials available------ 32,000
Manufacturing wages -----10,000
Factory expenses-----5,000
Royalty-------3,000
Factory rent ------2,000
Depreciation of plant and machinery---- 5,000
closing stock of raw materials-------- 3,000
Factory overhead cost is
Answer
(C)
$12,000
38
Capital and drawings accounts are kept in the
Answer
(D)
private ledger
39
Set-off is carried out in the control account when
