Use the following information to answer the given question
\(\begin{array}{c|c} & ₦ \\ \hline \text{ordinary shares of ₦1 each} & 500,000\\ \text{8% preference shares of ₦1 each} & 200,000\\ \text{Interim dividends paid} & \\ \text{- ordinary shares} & 40,000\\ \text{-preference shares} & 12,000\\ \text{profit for the year} & 100,000\end{array}\)
If no profit is to be retained, proposed preference shares dividend is
- A. ₦28,000
- B. ₦16,000
- C. ₦12,000
- D. ₦4,000
Which of the following is not a revenue account?
- A. sales
- B. purchases
- C. discount received
- D. interest received
The basis of accounting which eliminates debtors and creditors is
- A. cash basis
- B. accral basis
- C. fund basis
- D. commitment basis
A sales ledger contains
- A. creditors' accounts
- B. nominal accounts
- C. real acounts
- D. debtors' accounts
A book that contains the account for the financial transactions of an organizations is the
- A. journal
- B. ledger
- C. folio
- D. register
Public sector accounting is practiced in
- A. public limited companies
- B. government organization
- C. profit making organization
- D. public trainging company
A system where a separate cash book is maintained for small payments is
- A. single entry
- B. imprest
- C. float
- D. reimbursement
The depreciation method in which the number of years of the useful life of an asset is allocated in a reverse order is
- A. straight line
- B. reducing balance
- C. sum of the yeara; digits
- D. revaluation
The art of collecting, recording, presenting and interpreting accounting data is
- A. cost accounting
- B. management accounting
- C. financial accounting
- D. data processing
Which of the following is a source of revenue to a local government authority?
- A. poll tax
- B. excise duty
- C. paye tax
- D. value added tax
Which of the following attracts a fixed rate of dividend?
- A. ordinary shares
- B. founder's shares
- C. preference shares
- D. defferred shares
An example of capital gain s
- A. premium
- B. bonus
- C. shares
- D. debenture
Which of the following is not a real account?
- A. building account
- B. motor vehicle account
- C. patents account
- D. furniture account
Holder of ordinary shares do not have the right to
- A. participate in additional issue of shares
- B. vote at annual general meetings
- C. elect the board of directors
- D. receive dividends at a predetermined rate
The double entry in the books to write off goodwill is
- A. debit Goodwill account, credit capital account
- B. debit Goodwill account, credit revaluation account
- C. debit profit and loss appropriation account, credit Goodwill account
- D. debit Trading account, credit Goodwill account
The maximum amount which a company is allowed to raise through the sale of shares is
- A. authorized capital
- B. paid-up capital
- C. issued capital
- D. working capital
Use the following information to answer the given question
\(\begin{array}{c|c}year & profit \\ \hline 2003 & Le 40,000\\ 2004 & Le 48,000\\ 2005 & Le 62,000\end{array}\)
The value of goodwill calculated at 3 years purchase of annual profit is
- A. Le 450,000
- B. Le 150,000
- C. Le 50,000
- D. Le 48,000
The correct sequence in data processing is
- A. input \(\to\) process \(\to\) output
- B. input \(\to\) output \(\to\) process
- C. process \(\to\) input \(\to\) output
- D. process \(\to\) output \(\to\) input
Which of the following is not a data processing method?
- A. manual
- B. mechanical
- C. electronic
- D. formatting
In the absence of partnership agreement, a loan by a partner attracts interest at
- A. 20%
- B. 15%
- C. 10%
- D. 5%
Which of the following is not used for determining working capital?
- A. cash
- B. debtors
- C. motor vehicles
- D. overdraft