The following account are prepared when goods are sent to branch except
- A. Branch stock
- B. Goods set to branch account
- C. Branch adjustment account
- D. Branch debtors account
Sales ledger control account contains the total amount in respect of
- A. creditors
- B. debtors
- C. investors
- D. shareholders
The act of making necessary adjustment after comparing the actual cost with targeted cost is cost —————————-
- A. conversion
- B. control
- C. allocation
- D. analysis
One of the items listed below will not be found in a company’s memorandum and article of association. Which is it?
- A. objects and their alteration
- B. location of business
- C. bank signatories
- D. powers of directors
The following accounting entries are made when bad debt is recovered
- A. debit bad debts accounts and credit bad debt recovered account
- B. debit debtors accounts and recovered account
- C. debit bad debts recovered account and credit bad debts account
- D. debit bad debts account and credit profit and loss account
Derive the stock turnover period.(Average stock = 23,000. Cost of sales = 300,000 year = 365 days).
- A. 28 days
- B. 42 days
- C. 27 days
- D. 23 days
What does liquidity ratio measure?
- A. measures operating efficiency of a company
- B. measures the ability of a company to meet its current obligations.
- C. measures the value of investments of a company
- D. measures the financial leverage of a company
The accounting convention that state that, stock should be value that the lower of cost and net realized value is ————— convention
- A. marching
- B. consistency
- C. realization
- D. prudency
Which of the following is not a proper form of the accounting equation
- A. fixed assets + current assets - liabilities = capital
- B. fixed assests + current assests + liabilities = capital
- C. fixed assets – liabilities + current assets = capital
- D. fixed asset + current asset – capital = liabilities
Which of the following is a debit entry in debtors control account?
- A. discount allowed
- B. return inwards
- C. credit sales
- D. cash from debtors
In a bank reconciliation statement, Dishonoured cheques is added to
- A. unpresented cheques
- B. uncredited cheques
- C. statement of account
- D. aggregate balanace as per cash book
The ledger entries to be made if cash sales is banked is debit
- A. cash, credit sales
- B. sales, credit cash
- C. bank, credit cash
- D. bank, credit sales
CR. DR.
Sales ledger balance 9, 500
Sales ledger balance 420
Bought ledgers balance 6, 115
Bought ledger balance 350
Credit sales 82, 000
Purchases journal 54, 700
Discount allowed 450
Discount received 200
Cash refunded to customers (debtors) 120
Purchases ledger balance 250
Sales ledger balance 120
The amount brought down in the sales ledger control account would be
- A. N9, N1740; N120
- B. N90, N990
- C. N90, N870; N120
- D. N80, N750
Using LIFO method of stock valuation, analyze the issue quantities and their prices
- A. 260 units at N1.50
- B. 700 units at N1.50
- C. 200 units at N1.50 and 500 units at N1.00
- D. 350 units at N1.50 and 350 units at N1.00
When the invoice of a customer is overcast, the supplier will send to him a
- A. debit note
- B. cheque
- C. credit note
- D. payment voucher
Use the information below to answer this question.
Timo and Chris are computer engineers who went into partnership as Teachi and Co. Timo brought cash of N12,000 furniture worth of N18,000 and vehicle worth of 70,000. Chris equally brought in cash of 10,000 his building valued at 105,000 and personal computers worth N35,000.
What is the profit sharing ratio if it’s based on capital contribution by Teechi and Co?
- A. 2 : 3
- B. 3 : 2
- C. 6 : 5
- D. 5 : 6
The accounting concept that allows the cost of kitchen cutlery to be expensed, though it can be used for more than one year is
- A. Materiality
- B. Accrual
- C. Going concern
- D. Business entity
Prime cost is one of the following
- A. expenses which can be identified with an allocated to cost centers
- B. aggregate direct material cost, direct labour cost and variable direct expenses
- C. the cost taken into account in the production process whether direct or indirect
- D. the cost of commodities supply to an undertaking
Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Stock} & 11,250 \\
\hline
\text{Debtors} & 18,750 \\
\hline
\text{Creditors} & 3,750 \\
\hline
\text{Bank} & 4,000 \\
\hline
\text{Net profit} & 7,500 \\
\hline
\text{Net} & 60,000 \\
\end{array}\)
Determine the debtors collection period
- A. 114 days
- B. 68 days
- C. 37 days
- D. 41 days
The major distinguishing element between the final account of a partnership and that of a sole trader is the
- A. drawing account
- B. capital account
- C. Creditor account
- D. Appropriation account
Use the information below to answer this question.
Buhari and Osinbajo are in partnership with the following partnership agreement
Buhari Osinbajo
Capital 40, 000 70, 000
Salary 10, 000 15, 000
Int.on capital 5% 5%
Profit/loss sharing ratio 40 : 60
The net profit for the year ended is N80,000.
“Drawings are N80, 000 and N12, 000 for Buhari and Osinbajo respectively”
What is Osinbajo share of profit?
- A. N19, 800
- B. N49, 500
- C. N48, 000
- D. N29, 700