The purpose of a trading account is to ascertain
- A. sales
- B. carriage outwards
- C. gross profit or loss
- D. net profit or loss
The accounting concepts which assumes that business will continue to be in existence into the foresee ablefure is
- A. periodicity
- B. business entity
- C. dual aspect
- D. going concern
Which of the following is not a feature of accounting information?
- A. timeliness
- B. accuracy
- C. completeness
- D. affordability
Capital reserves includes the following except
- A. revaluation surplus
- B. pre-incoporation profit
- C. share premium
- D. general reserves
Income and expenditure account is more detailed than receipts and payments account because it disclosed
- A. cash
- B. cheques
- C. debtors
- D. stocks
Use the information below to answer this question.
Jejelaye Plc stock records for 2009 was given below:
Jan 1 received 100 units at N1.00
Jan 8 received 260 units at N1.05
Jan 20 issued 700units at ………
Feb 3 received 400 units at N1.15
What will be the issued price of 700 units, using simple average method
- A. N1.183
- B. N1.025
- C. N1.00
- D. N1.05
Sai Baba made sales of N10,000 having computed his gross profit % to sales to be 20. His opening stock was N250 and ending stock is N200. Calculate his purchases.
- A. N7950
- B. N8050
- C. N7050
- D. N8950
What is the ledger entry for sale of generator on credit to Patrick?
- A. credit sales account and debit Patrick’s account
- B. credit generator account and debit cash account
- C. credit sales account and debit cash account
- D. credit generator account and debit Patrick’s account
Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Raw materials jan.} & 5,000 \\
\hline
\text{Raw materials dec.} & 5,800 \\
\hline
\text{Purchase of raw materials} & 45,000 \\
\hline
\text{Salary} & 61,000 \\
\hline
\text{Factory lubricant} & 2,050 \\
\hline
\text{plant depreciation} & 1,300 \\
\hline
\text{Factory insurance} & 1,250 \\
\end{array}\)
The prime cost for the company is
- A. N169, 200
- B. N44, 200
- C. N55, 800
- D. N230, 200
Preliminary expenses is an example of
- A. fictitious assets
- B. liquid assets
- C. wasting assets
- D. tangible assets
The process of cost apportionment is carried out so that
- A. indirect costs may be controlled
- B. cost units could gather overhead as they pass through cost centres
- C. variable costs may be controlled
- D. common costs are shared among cost centres
To realize an asset means to
- A. mortgage it
- B. open its account in the ledger
- C. turn it to cash
- D. give it out as a collateral
The ware and tear of a fixed assets of a company which is chargeable to company’s financial statement is called ——————————
- A. appreciation
- B. amortization
- C. provisions
- D. depreciation
The imprest of a petty cashier is N2450
Expenses on Printing 420
Cleaning 250
Stamp and postage 175
How much was received to maintain the imprest at the end of the month?
- A. N1, 605
- B. N875
- C. N2, 450
- D. N1, 300
Use the information below to answer this question.
A limited liability company has an authorized shares capital of 50 million split into 100 millions shares. 80million shares are offered for subscriptions at 60k per share in full on application. These have been fully subscribed on issue
What is the nominal value of each share
- A. N2
- B. N0.80
- C. N0.60
- D. N0.50
Use the following information to answer this question.
Provision for bad debt 1500
Additional information
1. Bad debt written off amount to 3000
2. Debtors balance as at the end of the year is 28,000
3. Provision for bad debts stand at 10%
How much is to be charged to profit and loss account as provision for bad debt?
- A. N2, 800
- B. N1, 000
- C. N2, 500
- D. N3, 000
If rent account is debited instead of rate account, the error committed is that of;
- A. omission
- B. commission
- C. principle
- D. original entry
The loss made by a non profit making organization is called
- A. deficit
- B. surplus
- C. discount
- D. shortage
The document setting out the regulations regarding shares, meetings and internal organization of a company is known as
- A. prospectus
- B. memorandum of association
- C. company law
- D. articles of association
An advantage of using accounting ratios is that
- A. can be easily calculated
- B. show errors and frauds
- C. facilitate decision making
- D. are stipulated by law
Use the information below to answer this question.
\(\begin{array}{c|c}
\hline & \text{Dept A} & \text{Dept B} \\
\hline
\text{Sales} & 180,000 & 150,000 \\
\hline
\text{Cost of sales} & 79,000 & 85,000 \\
\hline
\text{Expense} & 28,000 & 40, 000 \\
\end{array}\)
How much is the gross profit for department A?
- A. N101,000
- B. N73,000
- C. N79,000
- D. N152,000