Accounting information is used by investors and creditors of a company to predict
- A. potential merger candidates for the company
- B. appropriate remunerations for the company’s staff
- C. future cash flows of the company
- D. future tax payments of the company
If sales return is understated, it implies that —————————— is overstated
- A. return inward
- B. sales figure
- C. cost of sales
- D. return outward
Use the following information to answer this question.
Club building 400,000
Subscription prepaid 3,000
Sport kits 150,000
Bar creditors 85,000
Subscription owing 32,000
What is the club’s total liabilities
- A. N11, 700
- B. N26, 700
- C. N88, 000
- D. N85, 000
If a trail balance is in agreement, one of the statement is untrue
- A. the accounting system is error free
- B. equal debit entries and credit entries were recorded for each transaction
- C. the debit and credit from the journal were posted to the accounts
- D. account balances were correctly computed
Which of the following cannot be realized?
- A. creditors
- B. debtors
- C. motor vehicles
- D. goodwill
Specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements are known as ———————
- A. financial accounting
- B. accounting policies
- C. cost accounting
- D. accounting conventions
Goods stolen at the branch is debited to
- A. branch stock account
- B. defalcations account
- C. branch debtors account
- D. branch adjustment account
The income and expenditure account of a club is the same as
- A. single entry account
- B. a profit and loss account
- C. a trading account
- D. a cash book
Use the information below to answer this question.
Dangote acquired Dantata’s business for N350,000. The total asset work were N820,000 and liabilities amounted to N 640,000
The double entry to record the goodwill in the books is debt
- A. purchase of business account and credit cash account
- B. goodwill account and credit purchase of business account
- C. cash account and credit goodwill account
- D. goodwill account and credit cash account
Which of the following is shown in the profit and loss appropriation account of a company
- A. interest charges
- B. depreciation
- C. directors emoluments
- D. dividends
Calculate the total purchase of a business from the given information, cash purchases 3000; payments to creditors 53,000; creditors at the beginning 4000; creditors at the end 2,000
- A. N52,000
- B. N51,000
- C. N55,000
- D. N50,000
When shares are sold at more than the par value, they are said to have been issued at
- A. A premium
- B. Normal value
- C. A discount
- D. A profit
Which of the following accounts is debited when a delivery van is sold for cash?
- A. sales account
- B. delivery van account
- C. cash account
- D. profit and loss accounts
Which of the following is true in public sector accounting? Cost of assets is
- A. depreciated on straight line method
- B. expensed in the year of purchase
- C. charged to federation account
- D. depreciated on reducing balance method
Keeping records under single entry system has the advantage of
- A. Quality in terms of records
- B. Simplicity in terms of operation
- C. Accuracy in terms of operation
- D. Completeness in terms of records
Use the information below to answer this question
Segun Ojo, didn’t keep her books on double principle. On 1st Jan, 2014, cash in hand was 850, bank overdraft 3500, debtor 15,500,stock 18,000, fittings 9,000 and creditors 12,700. As at Dec, 2014, cash in hand was 1200, cash at bank 2,500, debtors 10,000, stock 20,500, furnishing 4,000 and creditors 17,000
Compute the capital as at 1st Jan, 2014.
- A. 27,150
- B. 43,350
- C. 16,200
- D. 34,350
A sales for N2,570 was recorded in the sales day book as N2750. The error committed was
- A. error of principle
- B. error of commission
- C. error of original entry
- D. compensating error
Use the information below to answer this question.
A business has three departments x, y and z
You are given the following information
Selling and distribution expenses N5200
Rent for the yearN6000
Department turnover floor space in square metres
X N60,000 80
Y N80,000 60
Z N100,000 60
How much rent is apportioned to department Z?
- A. N1, 500
- B. N3, 000
- C. N1, 800
- D. N2, 000
If the partnership agreement does not specify how net profit is to be divided, the profit should be divided
.
- A. equally
- B. in accordance with an established
- C. in proportion of current account balances
- D. in proportion of weighted average of capital
Use the information below to answer this question
SegunOjo, didn’t keep her books on double principle. On 1st Jan, 2014, cash in hand was 850, bank overdraft 3500, debtor 15,500,stock 18,000, fittings 9,000 and creditors 12,700. As at Dec, 2014, cash in hand was 1200, cash at bank 2,500, debtors 10,000, stock 20,500, furnishing 4,000 and creditors 17,000
Determine the closing capital 31/12/2014
- A. 17,500
- B. 38,200
- C. 20,700
- D. 27,200
The basis of accounting for public sector is
- A. accrual basis
- B. cost basis
- C. revenue basis
- D. cash basis