When a purchase business is revalued, the effect is that?
- A. a decrease in the value of asset has no effect on value of goodwill
- B. an increase in the value of asset is treated as an increase in the value of goodwill
- C. a decrease in the value of asset is treated as an decrease in the value of goodwil
- D. an increase in the value of asset is treated as an decrease in the value of goodwill
The accumulation fund of a non-trading concern can equally be referred to as?
- A. members' equity
- B. share capital
- C. general fund
- D. surplus fund
The Partnership Deed normally specifies?
- A. how profit or losses are to be shared
- B. the capital to be contributed annually
- C. how salaries are paid to employees
- D. the profit that should be earned annually
Use the information below to answer question Maimalari Ltd had (i) Earning per share 47k (ii) Dividend per share 30k (iii) Par value of each share N1.20 (iv) Market price per share N1.50
What will be the price earnings ratio of the company?
- A. 3.91
- B. 3.19
- C. 2.95
- D. 2.55
Use the information below to answer question
Maimalari Ltd had (i) Earning per share 47k
(ii) Dividend per share 30k
(iii) Par value of each share N1.20
(iv) Market price per share N1.50
The company’s earning yield is?
- A. 20.00%
- B. 25.00%
- C. 31.33%
- D. 39.17%
Given:
Opening cash balance N20,000
Sales of match tickets N15,000
Clearing of pitch N1,200
Refreshments N3,500
Referees’ allowance N1,000
Cost of petrol N1,120
Donation from local government N3,800
The club’s balance is?
- A. N39,180
- B. N34,830
- C. N34,380
- D. N31,980
An outright sale of a partnership amounts to the?
- A. compensation of vendors by the purchase
- B. admission of a new partner
- C. purchase of rights of a dead partner
- D. change of sharing ratio of vendors
Which of the following items does not feature in the balance sheet of a club?
- A. Arrears of current year's subscription
- B. Salary arrears paid in the current year
- C. Rental income received in advance
- D. Advances subscription in respect of a coming year
Use the information below to answer questions Maro Merchant Bank plc is to issue N500,000 ordinary shares of 50k each at N 3.00 per share. Applications were received for N1,550,000 shares fully paid, N1,250,000 shares are to be issued on a pro rata basis and excess subscriptions were dishonored and refunds made?
What will be the number of shares to be issued to a subscriber who applied for N30,000 shares?
- A. N20,000
- B. N18,000
- C. N15,000
- D. N12,000
Use the information below to answer questions
Maro Merchant Bank plc is to issue N500,000 ordinary shares of 50k each at N 3.00 per share.
Applications were received for N1,550,000 shares fully paid, N1,250,000 shares are to be issued on a pro rata basis and excess subscriptions were dishonored and refunds made?
The refund due to an application for N25,000 shares is?
- A. N45,000
- B. N30,000
- C. 7,500
- D. N5,000
Didi Ltd offered 10,000 ordinary shares of N1.50 each at a discount of 2% which were fully subscribed. With regard to the offer above?
- A. shares are never offered at a discount; the offer is invalid
- B. the value of shares in the capital account will be lowered by 2%
- C. the company incurs a loss to the tune of 2% of the offer
- D. each of the subscribers loses 2% of investment
When a customer’s cheque is returned unpaid in a debtor’s control accounting system, the treatment will be?
- A. debit bank, credit custmer and credit conyrol account
- B. credit bank, debit customer, and credit control account
- C. debit customer, debit control accountand credit bank
- D. credit control account, debit bank and debit customer
One of the advantage of the shortcomings of single entry procedures is that?
- A. a trial balance is not available
- B. profits are overestimated
- C. there are no subsidiary books
- D. there are no control accounts
A fixed cost is fixed only in relation to?
- A. the quality of goods produced
- B. the quantity of goods sold
- C. a given period of time and a range of activities
- D. a given period of time and the nature of activity
The simplest form of single entry procedure consists fo keeping a?
- A. day book or general journal
- B. cash book and ledger accounts showing debtors and creditors balances
- C. cash journal, sales journal and purchases journal
- D. day book in which transactions are described in chronological order
Given:
Sales Ledger Control Account (Extracts)
Balance b/f N10,600
Total cash payments by debtors N32,275
Total credit sales N59,193
Discount received N9,700
Balance c/f N20,751
Discount allowed N2,890
Determine the sales returns?
- A. N24,577
- B. N13,877
- C. N7,067
- D. N2,890
In a manufacturing company, the total cost of goods produced is equivalent to?
- A. purchases
- B. sales
- C. cost of goods sold
- D. cost of materials used
An expenses account is closed by a debit to?
- A. an asset account and a credit to the expenses account
- B. the expenses account and a credit to an asset account
- C. profit and loss account and a creit to the expenses account
- D. the expenses account and a credit to profit and loss account
Which of the following errors will affect the trial balance total?
- A. posting disscount allowed to the debit side of the discount allowed account
- B. omision of one account from the list when extracting from the ledger
- C. failure to post sales of N2,000 and purchases of N2,000 from the subsidiiary ledger
- D. omission of sales of N3,000 and purchases of N2,000
A general journal contains?
- A. date, narration, folio, debit, and purchases
- B. date, narration, folio, debit and purchase
- C. folio, credit, date, debit and sales
- D. debit, credit, narration, and date
The most convenient cash book used by a petty trader operating in an area where there is no banking facility is?
- A. four column
- B. three column
- C. single column
- D. two column