Use the information below to answer question .
Capital…………………N?
Profit and loss………….N3500
Current assets…………..N?
Current liabilities………N2000
fixed assets…………….N11000
The company maintains a current ratio of 3:1.
The capital balance is?
- A. N95 00
- B. N12 500
- C. 11 500
- D. 10 00
A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the?
- A. weighted average method
- B. simple average method
- C. FIFO method
- D. LIFO method
The objective of a trading account is to establish the?
- A. cost of goods sold
- B. gross profit
- C. manufacturing profit
- D. net profit
The objective of the purchase ledger control account is to established the?
- A. credit purchases
- B. net profit
- C. total purchases
- D. gross profit
Use the information below to answer questions .
On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.
the rate of the yearly depreciation expense would be?
- A. 50%
- B. 40%
- C. 30%
- D. 20%
Use the information below to answer questions .
On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.
Calculate the yearly depreciation expense using the straight line method.
- A. N11 000
- B. N11 200
- C. N11 400
- D. N11 300
Fatima withdraws goods from the business for personal use. the accounting treatment is to debit?
- A. stock account and credit profit and loss account
- B. drawings account and credit stock account
- C. profit and loss account and credit drawing account
- D. stock account and credit drawings account