Impersonal account is subdivided into
- A. real and nominal accounts
- B. nominal and personal accounts
- C. real and current accounts
- D. personal and real accounts
The costs of acquiring fixed assets and bringing them into the firm is a
- A. general expenses
- B. recurrent expenditure
- C. revenue expenditure
- D. capital expenditure
A discount that is allowed to encourage a debtor to pay off his debt within a period is the
- A. annual discount
- B. trade discount
- C. periodic discount
- D. cash discount
When the fixed capital method is used, the partners’ share of profits and remunerations are credited to the
- A. current account
- B. profit and loss account
- C. profit and loss appropriation account
- D. capital account
1. The amount of the imprest is the same from one organization to another.
2. At the end of a fixed period, the petty cashier received a fixed sum of money.
3. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
4. The system is a method by which a measure of control is kept on petty cash expenses.
Which of the following is correct about the imprest system?
- A. II and IV
- B. II, III and IV
- C. I, II and III
- D. III and IV
The major sources of revenue for the state and local governments is
- A. value added tax
- B. statutory allocation
- C. taxes and levies
- D. recurrent revenue
The income and expenditure account differs from receipts and payments account because it
- A. accounts for notional charges
- B. records transactions that relate to the period on cash basis
- C. records transactions that relate to the period on accrual basis
- D. accounts for balance of cash at bank
When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at
- A. a price above or below the stipulated price
- B. any price but not below the transfer price
- C. cost price
- D. a price that is equal to the mark-up
Badge Plc issued 450,000 ordeinary shares of 50k each at #1.50 per share
Application and allotment 45k
1st call 50k
2nd call 55k
Determine the amount received on final call.
- A. #225,000
- B. #236,250
- C. #247,500
- D. #202,500
A proprietor started business with #13,000. Assets and liabilities at the end of the year; fixed assets #8,800, stock #, 600, debtors #1,000, cash #3, 000 and creditors #1,000. Determine the profit for the year?
- A. #2,400
- B. #3,000
- C. #9,800
- D. #1,400
An organization which has records of only personal accounts is said to be operating on the basis of
- A. single entry
- B. real accounts
- C. nominal accounts
- D. double entry
Turaki Youth Club Income and Expenditure for the year ended 31/12/04
# #
Bal.b/d 390 Expenses on cleaning 300
Sales of – New tool 510
trickets 4,000 Repairs 400
Donations 3,000 Electricity 350
Subscription 6,500
What is the total income for the period?
- A. #10,500
- B. #13,500
- C. #13,890
- D. #9,500
A receipt is an evidence of
- A. payments
- B. stocking
- C. delivery
- D. discounts
Given: #
Drawings 3,500
Net loss 2,500
Capital 1.1,2007 35,000
Additional capital 10,000
The adjusted capital as at 31 : 12 : 2007 is
- A. #45,000
- B. #39, 000
- C. #35,000
- D. #46,000
Which of the following condition would attract credit and debit notes to be used?
- A. When goods are received from supplier
- B. When a trial balance is extracted
- C. When a buyer is under or over charged
- D. When goods are sold to a buyer
The effect of overstating revenue expenditure in the profit and loss account is that the
- A. opening stock will be increased
- B. net profit will be understand
- C. net profit will be overstead
- D. opening stock will be decreased
Which of the following is the capital reserve of a company?
- A. Accumulated depreciation
- B. Retained profit
- C. Share premium
- D. Loss on forfeited shares
The documents that provide instant information to firms on their tranactions with banks are
- A. bank statement and debit note
- B. cheque book and cashbook
- C. cheque stub and deposit slip
- D. payslip and credit invoice
An item in the balance sheet of a limited liability company is
- A. accrued expenses
- B. lighting and heating
- C. salaries and wages
- D. general expenses
The instrument used in analysis and interpretation of financial statement is the
- A. accounting ratios
- B. income and expenditure extract
- C. balance sheet extract
- D. found accounting
The ratio that gives the indication of the efficiency of a firm’s sales with respect to cost of goods sold is a
- A. return on capital employed
- B. gross profit margin
- C. net profit margin
- D. return on equity