Use the following information to answer this question
| Year | ₦ |
| 1991 1992 1993 1994 |
14,000 24,000 10,000 16,000 |
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
- A. 32,000
- B. 16000
- C. 30000
- D. 64,000
Shares that are offered to existing shareholders at a price is called
- A. par
- B. premium
- C. right issue
- D. bonus issue
An ordinary share of ₦100 was issued at ₦80. The share was issued at
- A. premium
- B. par
- C. discount
- D. loss
Use the following to answer this question
|
Opening stock Purchases Sales Closing Stocks |
₦ 20,000 70,000 100,000 15,000 |
What was the gross profit?
- A. ₦35,000
- B. ₦75,000
- C. ₦50,000
- D. ₦25,000
Use the question to answer this question:
| Opening stock | ₦ |
| Department A B |
100 800 |
| Purchases: A B Wages of workers Salaries |
1500 2000 50 100 |
| Sales A B |
3000 5000 |
Expenses are to be shared in the ratio of sales.
What was the cost of goods sold?
- A. ₦25,000
- B. ₦35,000
- C. ₦50,000
- D. ₦75,000
Discount received is charge to
- A. current account
- B. profit and loss
- C. trading account
- D. balance sheet
The purpose of profit and loss account is to ascertain
- A. Gross profit
- B. Capital
- C. Expenses
- D. Net profit
A rent of ₦50,000 was paid by samson to his landlady by cheque. The double entry in Samson’s book is
- A. Debit rent account, Credit bank account
- B. Debit Rent account, Credit Samson's account
- C. Debit Bank account, Credit Rent account
- D. Debit Samson's account, Credit Rent account
The difference between double entry and single entry is
- A. double entry is based on the dual concept while single entry is not based on dual concept
- B. double entry is an account while single entry is not an account
- C. double entry keeps personal account while single does not
- D. double entry is useful for business enterprise while single entry is not
The rules of double entry states that
- A. for every debit entry, there must be a corresponding debit entry
- B. for every credit entry, there must be a corresponding credit entry
- C. all transactions must be recorded in two accounts, one account is debited and another is credited
- D. all transaction must be credited
A proprietor withdraws cash from the business for private use, he
- A. credits cash account and debits bank account
- B. credits cash account and debits drawing A/C
- C. debits cash account and credits drawings account
- D. debits bank account and credits drawings account
Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be
- A. Increase in assets of motor vehicle account
- B. Decrease in assets of motor vehicle account
- C. Increase in assets of bank account
- D. Increase in liabilities of bank account
Majority of commercial transactions are termed credit transactions, which means
- A. The buyers pay immediately for goods bought
- B. Settlement is deferred to a future date
- C. No account will be opened
- D. Item of expenditure increases
One of these is not a similarity between Joint Venture and Partnership.
- A. AIM is profit making
- B. It is for a specific venture
- C. Involves two people
- D. have rights and duties
The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is
- A. FIFO
- B. LIFO
- C. SAP
- D. WAP
Accounting standards are issued at the International level by the
- A. Standards Advisory Council
- B. International Accounting Standards Board
- C. Nigerian Accounting Standards Board
- D. Standing Interpretations Committee
The importance of bank statement is all except
- A. verifies the accuracy of balances of cash book and cheque book
- B. helps to detect and rectify any error
- C. helps to debit an account
- D. helps to update the cash book
Given:
|
Additional capital Capital Closing capital Net profit |
₦ 4000 8000 12000 1500 |
The drawings for the period stand at
- A. 1500
- B. 3000
- C. 12,000
- D. 10,500
The two recognised accounting bases are
- A. cash and credit
- B. personal and impersonal
- C. Accrual and Cash
- D. Drawings and Private
Every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having economic interest is
- A. realisation concept
- B. entity concept
- C. going concern concept
- D. matching concept
Use the question to answer this question:
| Opening stock | ₦ |
| Department A B |
100 800 |
| Purchases: A B Wages of workers Salaries |
1500 2000 50 100 |
| Sales A B |
3000 5000 |
Expenses are to be shared in the ratio of sales.
The net profit for departmental A is
- A. 1880
- B. 1600
- C. 880
- D. 425