The amount of individual items on a government budget is called
- A. vote
- B. deposit
- C. loan
- D. grant
The cash bass of accounting requires the recognition of revenue only when they are
- A. due
- B. earned
- C. paid
- D. received
The receipt from a special tax levy to pay maturing interest obligation are recorded in
- A. capital fund project
- B. Debt Service Fund
- C. Tax Assessment Fund
- D. Special Revenue Fund
The expenditure on a good or services which is consumed either immediately or within a current accounting period is called
- A. fixed expenditure
- B. capital expenditure
- C. annual expenditure
- D. recurrent expenditure
An advantage of using accounting ratios is that they
- A. can be easily calculated
- B. facilitate decision making
- C. are stipulated by law
- D. shows error and fraud
The document setting out the regulations regarding shares, meetings and internal organization of a company is known as
- A. memorandum of association
- B. article of association
- C. prospectus
- D. company law
A limited liability company has an authorized share capital of N50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued
What is the issued capital
- A. N40
- B. N48
- C. N50
- D. N80
A limited liability company has an authorized share capital of N50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued
What is the nominal value of each share?
- A. N2
- B. N0.80
- C. N0.60
- D. N0.50
when shares issued are paid for, accounting entry required is
- A. debit bank or cash account and credit share capital and/or premium account
- B. credit bank or cash account and debit share capital and/or premium account
- C. debit shares account and credit capital account
- D. credit shares account and debit capital account
Under which of the following conditions is a partnership dissolved?
- A. Change of partnership's head office
- B. admission of a new partner
- C. Purchase of a large quantity of fixed asset
- D. Retirement of a manager who is not a partner
Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.
The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo’s equity in the resulting partnership is
- A. N32,000
- B. N40,000
- C. N42,000
- D. N50,000
Goodwill appears in the books of a business only if it has been
- A. purchased at a certain price
- B. raised in connection with the admission of a new partner
- C. raised to account for the true value of a business on the death of a partner
- D. raised in order to prevent the balance sheet showing that the business is insolvent
The major distinguishing element between the final accounts of a partnership and a sole trader is the
- A. drawings account
- B. appropriation account
- C. capital account
- D. creditors account
The net profit from a trading account of a non-profit making organization would be treated as income in the
- A. income and expenditure account
- B. receipt and payment account
- C. balance sheet
- D. statement of affairs
The major difference between the receipt and payment account and the income and expenditure account is that while the former
- A. is kept by the treasurer, the latter is not
- B. deals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year
- C. is a T-account, the latter is not
- D. is not in the ledger, the latter is
Which of the following categories of labour cost will be classified as direct?
- A. accountant's salary
- B. factory workers' salary
- C. managing director's salary
- D. cashier's salary
From which of the following sources are creditors control account most likely to be posted?
- A. supplier's invoices
- B. cash disbursements journal
- C. subsidiary debtors ledger
- D. purchases journal
Beginning and ending accounts receivable balances were N8,000 and N15,000 respectively. If collections from customers during the period were N36,000, then total sales on account would be
- A. N23,000
- B. N29,000
- C. N36,000
- D. N43,000
If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an
- A. income in the profit and loss account
- B. income in the balance sheet
- C. additional cash in the profit and loss account
- D. expense in the balance sheet
The net profit or loss for the year is determined in profit and loss account after
- A. deducting purchases from sales
- B. deducting cost of goods sold from sales and adding administrative expenses
- C. adding commissions received to gross profit
- D. eliminating all expenses from gross profit and adding any other income
Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000
What is the cost of goods sold?
- A. N30,000
- B. N25,000
- C. N20,000
- D. N15,000