A major cause of discrepancy between the bank statement and the cashbook that overstates the bank statement balance is the
- A. commission paid
- B. interest received
- C. direct withdrawal
- D. direct payment
Use the information below to answer this question
₦
Total current assets 2000
Total fixed assets 4000
Current liabilities 1200
Drawings 200
Long term loan 2000
What is the net working capital?
- A. ₦1800
- B. ₦800
- C. ₦2600
- D. ₦600
Use the information below to answer this question
₦
Total current assets 2000
Total fixed assets 4000
Current liabilities 1200
Drawings 200
Long term loan 2000
Calculate the capital of the business.
- A. ₦3000
- B. ₦9400
- C. ₦3400
- D. ₦6000
One of the major features of book keeping is that it
- A. is futuristic in nature
- B. accepts responsibility for all wrong postings
- C. provides permanent records for all financial transactions
- D. does not give room for double entry procedure
The amount of subscriptions accrued is reported in the balance sheet under
- A. fixed cost
- B. current asset
- C. long term liability
- D. current liability
Accrual accounting differs from cash accounting because it recognizes
- A. prepayment and cash
- B. cash and creditors
- C. cash and debtors
- D. debtors and creditors
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Five hundred naira monthly is allowed on an imprest system. The following transactions took place
Period 1: ₦
Cash advanced to petty cashier 500
Petty cashier paid out: Stamp 200
Newspaper 250
Period 2:
Cash to petty cashier 450
Cashier paid for writing materials 350
What was the balance of cash with the petty cashier at the end of period 1?
- A. ₦450
- B. ₦300
- C. ₦50
- D. ₦200
Use the following information below to answer this question
Five hundred naira monthly is allowed on an imprest system. The following transactions took place
Period 1: ₦
Cash advanced to petty cashier 500
Petty cashier paid out: Stamp 200
Newspaper 250
Period 2:
Cash to petty cashier 450
Cashier paid for writing materials 350
How much should the petty cashier receive after period 2?
- A. ₦150
- B. ₦350
- C. ₦250
- D. ₦500
The rule of accounting equation requires that account payable should be placed under
- A. equities
- B. assets
- C. capital
- D. liabilities
In a control account, provision for bad debts is found on the
- A. credit side of the sales ledger control account
- B. debit side of the purchases ledger control açcount
- C. debit side of the sales ledger control account
- D. credit side of the purchases ledger control account
Given ₦
Stock (1/4/94) 800
Purchases of flour 2,450
Sales 4,745
Wages of bakery staff 675
Carriage outwards 50
Salary of administrative staff 225
Stock (31/3/95) 940
Capital 1,540
Calculate the cost of goods sold.
- A. ₦3,925
- B. ₦3,250
- C. ₦2,985
- D. ₦2,575
Danjuma Ltd. bought 10 bags of rice for N500 each. The company was given 5% and 12% trade and cash discounts respectively. What will be recorded as discount received in the company’s book?
- A. ₦250
- B. ₦570
- C. ₦850
- D. ₦600
Which of the following errors will affect the trial balance total?
- A. omission of sales of ₦3000 and purchases of ₦2000
- B. Posting discount allowed to the debit side of discount allowed account
- C. omission of one account from the list when extracting the ledgers
- D. failure to post sales of ₦2000 and purchases of ₦2000
Use this information below to answer this question
₦
Capital: Opening balance 307,000
Closing balance 342,000
Net profit for the period 121,600
Purchases 706,000
Carriage inwards 17,500
Cost of goods sold 740,700
Total selling, general and
administration expenses 526,000
Discount received 9,650
Opening stock 98,800
What is the gross profit for the period?
- A. ₦535,650
- B. ₦628,300
- C. ₦647,600
- D. ₦106,400
Use this information below to answer this question
₦
Capital: Opening balance 307,000
Closing balance 342,000
Net profit for the period 121,600
Purchases 706,000
Carriage inwards 17,500
Cost of goods sold 740,700
Total selling, general and
administration expenses 526,000
Discount received 9,650
Opening stock 98,800
Calculate the closing stock for the period.
- A. ₦69,300
- B. ₦81,600
- C. ₦81,300
- D. ₦106,400
₦
Bank account 59,410
Capital account 50,000
Purchases account 20,000
Rent 2,500
Stationery 90
Typewriter 6,500
Sales 38,500
In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?
- A. ₦I38,500
- B. ₦147,910
- C. ₦85,800
- D. ₦88,500
In preparing accounting records, the owners of a business and the business are treated as
- A. separate legal entities
- B. partners
- C. the same person
- D. having business relationship
Which of the following accounting records are source documents?
- A. journals and ledgers
- B. sales invoice and debit note
- C. sales invoice and cashbook
- D. cashbook and debit note
Under which of the following conditions is a partnership dissolved?
- A. change of the partnership's head office
- B. purchase of a large quantity of fixed assets
- C. admission of a new partner
- D. retirement of a manager who is not a partner