An example of input devices of a computer is
- A. an optical character reader
- B. a graph plotter
- C. a visual display unit
- D. a printer
The primary classification of government expenditure is based on
- A. programs
- B. fund
- C. activity
- D. project
When the purchase consideration exceeds the value of business, the difference is
- A. profit
- B. discount
- C. goodwill
- D. reserve
The accounting ratio used to measure the average number of days for which suppliers remain unpaid is
- A. stock turnover
- B. creditor's payment period
- C. debtors collection period
- D. return on capital employed
Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le\\ Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \{text{Interest on capital-6%} & \\ \text{Interest on drawings – 10%} & \end{array}\)
Profit sharing is in the ratio of capital. Bee’s share of profit is
- A. Le 8,000
- B. Le 6,000
- C. Le 4,800
- D. Le 3,200
Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le\\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings – 10%} & \end{array}\).
Profit sharing is in the ratio of capital. Aye;s share of profit is
- A. Le 6,000
- B. Le 4,800
- C. Le 4000
- D. Le 3,200
Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le \\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings – 10%} & \end{array}\)
Profit sharing is in the ratio of capital. The divisible profit is
- A. Le 14,000
- B. Le 12,000
- C. Le 10,000
- D. Le 8,000
Shares issued below nominal value are referred to as shares at
- A. premium
- B. discount
- C. face value
- D. cumulative value
When shares are issued above their nominal value, the excess above the nominal value is
- A. credited to profit and loss account
- B. debited to share premium account
- C. credited to share capital account
- D. credited to share premium account
The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is
- A. constitency concept
- B. prudence concept
- C. accrual concept
- D. going corncern cocept
In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a
- A. surplus
- B. shortfall
- C. loss
- D. deficit
A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?
- A. D33,000
- B. D28,000
- C. D23,000
- D. D5,000
When an asset is sold, the entries for the accumulated depreciation are; debit
- A. assets disposal account; credit provision for depreciation account
- B. provision for depreciation account; credit asset disposal account
- C. fixed asset account; credit asset disposal account
- D. asset disposal account; credit fixed asset account
The sum of direct cost in a manufacturing account is
- A. production cost
- B. prime cost
- C. total cost
- D. finance cost
The accounting concept underlying the treatment of personal expenses of the business owner as drawing is
- A. periodicity
- B. accrual
- C. entity
- D. materiality
Which of the following items is not contained in the Receipts and Payments Account?
- A. Subscription paid in advance
- B. stock paid for in advance
- C. outstanding wages and salaries
- D. donations
which of the following is not an administrative expenses in a manufacturing organization?
- A. discounts allowed
- B. office electricity
- C. stationery
- D. insurance
Net profit in a business is
- A. the amount of money taken out of the business by the owner
- B. the cash in the business bank account
- C. the difference between sales and cost of sales
- D. sales revenue less cost of sales expenses
Which of the following accounts would appear in the nominal ledger? i. Sanison’s account(a debtor) ii. Motor vehicle account iii. Sales account iv. Rent and rates account
- A. i, ii and iii only
- B. i, iii and iv only
- C. ii, iii and iv only
- D. iii and iv only
The purchase of ten ceiling fans by Akpan Electronic Enterprises will be recorded as
- A. an acquisition of fixed asset
- B. an expense in its general office expense account
- C. part of capital in the capital account
- D. an acquisition of stock
Use the information to answer the question given.
\(\begin{array}{c|c} \text{Cost of motor vehicle – 1\1\12} & ₦ 85,000\\ \text{Residual value} & ₦5,000 \\ \text{Estimated useful lifespan 10 years} & \end{array}\).
The business make use of the straight line method for providing depreciation, the accumulated depreciation as at 31/12/2013 is
- A. ₦18,500
- B. ₦17,000
- C. ₦16,000
- D. ₦8,000