Given:
Lankoh Company Ltd
₦
Stock 3,600,000
Cash at hand 800,000
Cash in bank 2,400,000
Debtors 580,000
Trade creditors 920,000
Bank overdraft 200,000
Tax liabilities 600,000
Salary owed to staff 180,000
What is the working capital?
- A. ₦5,480,000
- B. ₦6,480,000
- C. ₦8,480,000
- D. ₦7,380,000
Forlah, a stock broker bought stationery for ₦12,000 by cash. To record this transaction, debit
- A. cash and credit stationery
- B. purchases and credit stationery
- C. stationery and credit purchases
- D. stationery and credit cash
Which of the following is a debit item in the purchase ledger control account?
- A. balance b/d
- B. cheque dishonoured
- C. balance c/d
- D. purchases
The interest on partner’s loan is
- A. credited in current account
- B. debited in profit and loss account
- C. credited in profit and loss account
- D. debited in current account
The principle of double entry system ensures
- A. balances at the bank
- B. increase in the assets and liabilities
- C. balance of cashbook
- D. mathematical accuracy in trial balance
Use the information below to answer this question
At the end of a financial period, the trading profit and loss account of a sole trader shows a profit of
₦180,000 it is however discovered that revenue of
₦15,000 is recorded as expenses while expenses of
₦4,000 is recorded as revenue.
The revenue to be added as an adjustment is
- A. ₦34,000
- B. ₦4,000
- C. ₦30,000
- D. ₦15,000
Use the information below to answer this question
At the end of a financial period, the trading profit and loss account of a sole trader shows a profit of
₦180,000 it is however discovered that revenue of
₦15,000 is recorded as expenses while expenses of
₦4,000 is recorded as revenue.
Determine the adjusted net profit
- A. ₦202,000
- B. ₦210,000
- C. ₦195,000
- D. ₦184,000
The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of
- A. capital reserve
- B. net loss
- C. revenue reserve
- D. net income
If goods are sent to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of ₦100,000?
- A. ₦130,000
- B. ₦75,000
- C. ₦80,000
- D. ₦125,000
A source document is used for verifying the
- A. amount due from debtors
- B. amount due to creditors
- C. selling price of goods
- D. actual cost of an asset
Recurrent expenditures are expenses for the period not exceeding
- A. 10years
- B. 2years
- C. 5years
- D. 1year
The prime cost is the total of the
- A. direct materials+direct labour+direct wages
- B. production cost+selling expenses
- C. administrative expenses+selling expenses+distribution expenses
- D. direct materials+work overhead expenses
Use the information below to answer this question
Zahki Plc balance sheet (extract) as at 31st December 1997.
₦ ₦
Paid up capital 200,000 Fixed assets 300,000
Share premium 15,000
Profit and loss account 60,000 Investment 180,000
Long-term loan 180,000 Stock 28,000
Debtors 90,000
Creditors 200,000 provision(3000) 87,000
Other current liabilities 100,000 Cash 60,000
Bank 100,000
755,000 755,000
Determine the owner’s equity
- A. ₦275,000
- B. ₦200,000
- C. ₦755,000
- D. ₦215,000
Use the information below to answer this question
Zahki Plc balance sheet (extract) as at 31st December 1997.
₦ ₦
Paid up capital 200,000 Fixed assets 300,000
Share premium 15,000
Profit and loss account 60,000 Investment 180,000
Long-term loan 180,000 Stock 28,000
Debtors 90,000
Creditors 200,000 provision(3000) 87,000
Other current liabilities 100,000 Cash 60,000
Bank 100,000
755,000 755,000
The quick ratio is
- A. 0.82:1
- B. 1:53:1
- C. 0.95:1
- D. 0.91:1
The corresponding entry of personal accounts found in the debit side of the cashbook is to
- A. credit real accounts
- B. credit the ledger
- C. debit real accounts
- D. debit the ledger
The two legally recognized professional accounting bodies in Nigeria are the
- A. Nigerian Accounting Association and the Executive Cost and Management Accountants of Nigeria
- B. Institute of Certified Public Accountants of Nigeria and the Institute of Cost and Management Accountants
- C. Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria
- D. Association of Accountants of Nigeria and the Institute of Management Accountants of Nigeria
The formular for calculating depreciation using straight line method is
- A. Cost-scrap value/useful life
- B. Scrap value+sales/useful life
- C. Sales-scrap value/useful life
- D. Purshases+sales/useful life
The issued share capital is the number of shares that are
- A. shared among the directors
- B. authorised by the shareholders
- C. fully subscribed
- D. in the share certificate
Given: i. The memorandum of association of the company ii. The article of association of the company iii. The incorporation documents.
From the above, which of the following is delivered to the registrar of companies for incorporation?
- A. i, ii and iii
- B. i and ii
- C. i and iii
- D. ii and iii
The major objectives of departmental account is to ascertain the
- A. materials sold in each department
- B. insurance premium payable on employees
- C. number of employees in each department
- D. contribution of each department to profit
If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to
- A. have a higher cost of goods sold
- B. have a higher value of closing stock
- C. have a higher gross profit
- D. pay higher income tax