A company has departments L, M and O. Department L Occupies a space twice that of M while O occupies half the space of M. If the company pays ₦70,000 on rent, what is the amount of rent that should be allocated to M?
- A. ₦40,000
- B. ₦20,000
- C. ₦30,000
- D. ₦10,000
Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than overstates results?
- A. monetary
- B. cost
- C. conservatism
- D. historical
Kola and Sunday are in partnership sharing profits and losses equally. If Kemi is admitted as a new partner to take 1/5 as her share, what is the new profit or loss sharing ratio?
- A. Kola 1/3, Sunday 1/3 and Kemi 1/3
- B. Kola 1/5, Sunday 1/5 and Kemi 3/5
- C. Kola 2/5, Sunday 1/5 and Kemi 2/5
- D. Kola 2/5, Sunday 2/5 and Kemi 1/5
The rules which govern the internal management of a firm and its financial affairs in a partnership business is a
- A. memoransum
- B. deed
- C. financial regulation
- D. bye-law
In trial balance, income and liabilities are
- A. credited
- B. credited and debited respectively
- C. debited and credited respectively
- D. debited
The power to appoint the Auditor General of the Federation is vested in the
- A. National Assembly
- B. Civil Service Commission
- C. Judicial Service Commission
- D. President
The addition of prime cost, indirect cost and opening work- in-progress less the closing work-in-progress will result in cost of
- A. goods manufactured
- B. materials put into production
- C. goods available for sale
- D. goods sold
The value of the sales ledger control account is derived from the summation of the
- A. total creditors control account
- B. total debtors control account
- C. all day books
- D. both the debtors and creditors accounts
The standing order is a payment instruction given by a
- A. customer to a fellow customer
- B. bank to an employee
- C. customer to the bank
- D. bank to the customers
The debenture issued at par above the nominal value is Said to be issued at a
- A. margin
- B. premium
- C. cost price
- D. mark-up
Which of the following are advantages of departmental accounts?
- A. the capital of the business can be calculated easily
- B. easy knowledge of the sources of funding
- C. encouragement of healthy rivalry among the various department
- D. the department making the highest profit can be easily determined
Four broad classifications of overheads are
- A. production, selling, distribution and administration
- B. production, selling, distribution and material
- C. selling, distribution and material
- D. distribution, selling, administration and materials
Advertising expenses incurred on a product in a business organization should be charged to
- A. production department
- B. purchases department
- C. sales department
- D. administrative department
The major distinguishing element between the final accounts of a partnership and a sole trader is the
- A. drawings account
- B. appropriation account
- C. capital account
- D. creditors account
Appropriation Account
TAYO TOPE
₦ ₦
interest on capital 750 550
Salaries 800 600
Share of profit 3,300 3,300
Determine the net profits of the partnership
- A. ₦6,600
- B. ₦9,300
- C. ₦4,450
- D. ₦4,850
The term “accounting period” is used to refer to the
- A. time span, usually one year covered by the financial statement
- B. period within which debtors are expected to settle accounts
- C. time, span during which taxes are paid to the inland revenue board
- D. budget period, usually one year relied on by the accountant
Fiyinfoluwa Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000 on debiting the vehicle account, the corresponding credit for the purchase will appear in the
- A. sales day book
- B. cash book
- C. sales subsidiary book
- D. purchase day book
Use the information below to answer this question
A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000.
If the scrap value is presently ₦15,000 what will be the yearly depreciation using straight-line method?
- A. ₦7,000
- B. ₦11,000
- C. ₦4,000
- D. ₦24,000
Use the information below to answer this question
A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000.
The yearly depreciation using the straight-line method would be
- A. ₦5200
- B. ₦800
- C. ₦6500
- D. ₦4400
In the head office ledger, the value of goods sent to the branch are
- A. debited to the branch current account
- B. debited to the head office current account
- C. credited to the head office current account
- D. credited to the branch current account
The major feature of a journal is that it has
- A. five columns, date, particulars, folio, debit and credit
- B. three columns, date, particulars, folio and amount
- C. Six columns, date. particulars, folio, amount debit and credit
- D. four columns, date, particulars, folio and amount