If a monthly insurance premium is remitted to a company by the state government, the initial deductions from employees are recorded in?
- A. the general fund
- B. agency fund
- C. special fund
- D. general long-term fund
Money not required to meet chargeable expenditure in any fiscal year under cash accounting, should be?
- A. surrendered to the consolidated revenue fund
- B. carried forward to the next financial year
- C. reserved to meetany deficits or contingencies
- D. returned to the taxpayer
In a public corporation, the capital expenditure incurred in a financial period is?
- A. spread over the useful life of the assets through depreciation
- B. apportioned at a pre-determined rate stipulated by law
- C. written off in the year in which they occur
- D. merged with recurrent expenditure and reported in one required lump sum
The term fiscal compliance means?
- A. al financial and related laws and regulations are adhered to
- B. only the budget fir the current period is complied with and no deficits allowed
- C. all physical assets requirements have been met
- D. fiscal planning is necessary for proper accountabilit in the public sector
The difference between the closure of the books of a branch and those of a separate company is that?
- A. there is retained earnings account on the branch books
- B. the revenue and expenses account is closed to branch current account
- C. there is no retained earnings account on the branch
- D. the revenue and expenses account is not closed to the home office current account
Which of the following entries is effected by a department when goods are charged to it at selling prices?
- A. stock account is debited
- B. purchases account is debited
- C. stock account is credited
- D. mark-up account is debited
To compute gearing ratio, divide?
- A. profit by capital employed
- B. current assets by current liability
- C. profit by total assets
- D. long-term debts by equity capital
The part of equity which is payable on winding up is called?
- A. general reserve
- B. revenue reserve
- C. capital reserve
- D. normal reserve
Under which of these conditions can a company issue shares at discount? (i)A resolution must be passed at a general meeting (ii) The amount of discount must be stated in the resolution (iii) The share must have existed for at least six years (iv) On the order of a court.
- A. i, ii and iii only
- B. i, ii and iv only
- C. i, iii, and iv only
- D. ii, iii and iv only
Granada Corporation has net assets of N600,000 and contributed capital of N180,000. The corporation has 30,000 shares of common stock outstanding with no preferred stock. This suggest that the corporation has?
- A. a book value of N14 per share
- B. a book value of N20 per share
- C. a deficit of N420,000
- D. retained earnings of N600,000
The ordinary shareholders enjoy the following rights except the right to?
- A. vote at annual general meetings
- B. elect the board of directors
- C. participate in additional issues of shares
- D. receive dividends at a preddetermined rate
Dan and Baker are in partnership with capitals of N50,000 and N30,000 each. The partnership agreement provides that: (i) profits be shared in the ratio of capital (ii) both partners earn interest on capital at 6% p.a (iv) both parents pay interest on drawings at 6% p.a. At the end of the year, Dan drew N15,000 while baker drew N14,000 in four installments on 31/3, 30\6, 30\9 and 30\12. The net profit for the year was N48,000. N5000 is to be written off the goodwill account.
Determine the total interest on capital due to the partners?
- A. N1200
- B. N1800
- C. N3000
- D. N4800
Use the information below to answer question 38 and 39.
Dan and Baker are in partnership with capital of N50,000 and N30,000 each. The partnership agreement provides that:(i) profits be shared in the ratio of capital. (ii) Baker be paid a salary of N8,000.
(iii) both partners earn interest on capital at 6% p.a.
(iv) both partners pay interest on drawing at 6% p.a.
At the end of the year, Dan drew N15,000 while Baker drew N14,000 in four installment on 31/3,30/6,30/9 and 31/12. The net profit for the year was N48,000. N5,000 is to be written off the Goodwill account.
What is the interest on the drawing by Baker?
- A. N210
- B. N315
- C. N450
- D. N840
The price paid by an acquiring company is the?
- A. premium
- B. purchase consideration
- C. sales consideration
- D. conversion fee
Which of the following is an intangible asset and a measure of a firm’s superior earning power?
- A. Patent
- B. Goodwill
- C. Trademark
- D. Right issue
Umar and Ahemed share profit and losses equally and have capital balances of N40,000 and N60,000 respectively. If bdullahi purchases one-third interest with no bonus, how much will he have to contribute to the partnership?
- A. N33,333
- B. N40,000
- C. N44,444
- D. N50,000
When forming a partnership, new partners should record non-monetary assets on the new partnership’s books at?
- A. their current fair market values
- B. their historical costs when first use
- C. their historical costs when first purchase by each new partner
- D. the highest values practical so that future income tax deductions are maximized
Which of the following indicate that a partnership business is in place?
(i) There is a business
(ii)It is run commonly by partners
(iii)It has profit-making in view
(iv) Partners’ liability is limited
- A. i and ii only
- B. i, ii and iii only
- C. i, iii and iv only
- D. ii, iii and iv only
A non-profit-making organization differs from a profit-making one in that?
- A. it does not earn income
- B. proceeds from sale of shares form part of its income
- C. all its income is committed
- D. annual subscriptions and levies form part of its income
The trading account is to a sole trader what income and expenditure account is to a?
- A. partnership
- B. public limited organization
- C. manufacturing organization
- D. non-profit making organization
The limitations of the receipts and payments account arise mainly because of the reliance on?
- A. cash movement as evidence of transaction
- B. the acconuting officer to report
- C. the capital account of the organization
- D. the transaction papers as evidence of transaction