Income and expenditure account is more informative than receipts and payments account because it discloses?
- A. cash
- B. cheques
- C. debtors
- D. stocks
Given:
Cost of raw materials issued to production…..N37000
Opening stock of raw material………………N2000
Purchases of raw material………………….N3800
Wages …………………………………..N500
What is the closing stock of raw material?
- A. N4000
- B. N3000
- C. N2000
- D. N1000
four broad classifications of overheads are?
- A. production, selling, distribution and material
- B. production, selling, distribution and administration
- C. selling, distribution and production and wages
- D. distribution, selling, administration and material
The stock valuation data is important because it enables management to?
- A. separate debtors from creditors
- B. determine the cost of stock at the end of business
- C. determine the cost of stock at the beginning of business
- D. determine the total cost of goods purchased
Advertising expenses incurred on a product in a business organization should be charged to?
- A. production department
- B. sales department
- C. administration department
- D. purchases department
In a control account, provision for bad debts is found on the?
- A. debit side of the purchases ledger control account
- B. debit side of the sales ledger control account
- C. credit side of the purchases ledger control account
- D. credit side of the sales ledger control account
Provision for discount allowed can be recorded as debit to?
- A. the profit and loss account and a credit to provision for discount allowed
- B. provision for discount allowed and a credit to the profit and loss account
- C. discount allowed and a credit to the profit and loss account
- D. expenses and a credit to customers' account
Given:
(i) Order of performance
(ii) Order of liquidity
(iii)Vertical order
(iv) Horizontal order
The order in which a balance assets is arranged are?
- A. i and ii
- B. i and iv
- C. ii and iii
- D. iii and iv
Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost …………….N1950 000
Dec.31, Addition ………… N400 000
Credit:
Jan. 1, Depreciation ……..N1360 000
June 30, Sales proceeds…… N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
What is the actual profit or loss arising from the vehicle disposed of?
- A. N250 000 loss
- B. N50 000 loss
- C. N450 000 profit
- D. N575 000 profit
Use the information below to answer questions .
Motor Vehicle Account as at 31st December 2001.
Debit:
Jan. 1, cost …………….N1950 000
Dec.31, Addition ………… N400 000
Credit:
Jan. 1, Depreciation ……..N1360 000
June 30, Sales proceeds…… N700 000
The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.
Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?
- A. N280,000
- B. N289,000
- C. N250,000
- D. N340,000
Given:
Capital ………..N1000
Liabilities……..N500
Assets………….N1500
The accounting equation can be expressed as?
- A. N1000 + N500 + N1500 = N3000
- B. N1000 - N500 + N1500 = N2000
- C. N1000 + N500 = N1500
- D. N1500 + N500 = N2000
The recording phase of accounting is known as?
- A. bookkeeping
- B. trial balancing
- C. ledger accounting
- D. final accounting
The transaction that completes its double entry in the same ledger account appears in?
- A. cash account and personal account
- B. bank account and general ledger
- C. discount received and discount allowed
- D. cash account and bank accont
Which accounting concept supports the assertion that economic reality takes precedence over legal issues?
- A. Realization concept
- B. Substance over form
- C. Conservatism
- D. Measurement concept
Use the information below to answer question.
Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sales of N19000 from the business tray and banked it.
The transaction would be recorded in the cash book as debit?
- A. cash and credit bank
- B. bank and credit cash
- C. cash and credit cash
- D. bank and credit bank
Use the information below to answer question.
Ezekiel Malgwi is a retailer. He recorded sales representing 95% cash and 5% credit. He took the total cash sales of N19000 from the business tray and banked it.
The credit sales for the period would be?
- A. N5000
- B. N1900
- C. N1000
- D. N950
Verifiability in accounting is only possible when there are?
- A. minutes of meetings
- B. payment vouchers
- C. source documents
- D. audit certificates
Use the information below to answer question .
Capital ……………….N2000
Bank ………………….N1200
Purchase ………………N2500
Sales …………………N6700
Stock …………………N1300
Creditors ……………..N1000
Fixed assets……………N3700
Drawings ………………N?
Drawings are always estimated at 50% of capital.
The trial balance total is?
- A. N9700
- B. N8700
- C. N7900
- D. N7800
The two legally recognized professional accounting bodies in Nigeria are the?
- A. Institute of Certified Public Accountants of Nigeria and the Institute of cost and Management Accountants of Nigeria
- B. Association of Accountants of Nigeria and the Institute of Management Accountants of Nigeria
- C. Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria
- D. Nigeria Accounting Association and the Excutive Cost and Management Accounts of Nigeria
Which of the following is used to update the cash book in bank reconciliation?
- A. Interest received and unpresented cheques
- B. Commission and debit note
- C. Unpresented cheques and direct credit
- D. Interest received and direct credit
In the public sector, the method of accounting that reports revenues and expenditures in the period in which they are received and paid is called?
- A. fund accounting
- B. commitment accounting
- C. cash accounting
- D. accrual accounting