The main difference between the ordinary and preference shareholders is that?
- A. the former receive dividends while the latter do not
- B. the latter are not members of the company while the former are
- C. in the case of winding up, the former are paid first before the latter
- D. the former have voting rights while the latter do not
Where a company acquires controlling shares of another and the consideration is paid in cash, the entries in the books of the purchases are debit?`
- A. investment and credit cash
- B. investment and credit shares
- C. purchases and credit cash
- D. purchases and credit shares
Bala Ltd acquired the business of Bello Ltd and caused the separate existence of the latter company to terminate. This situation is best described as?
- A. absorption
- B. merger
- C. conversion
- D. dissolution
On the dissolution of a partnership business,the net book value of the assets is transferred to?
- A. debit of realization account
- B. credit of realization account
- C. credit of bank account
- D. debit of bank account
If a partner pays a premium of N500 for 1/5 share of profit, then the total value of goodwill is?
- A. N500
- B. N2,000
- C. N2,500
- D. N3,000
Marhumu and Yusuf are in partnership sharing profits and losses in the ratio of 2:1. On 31/3/2000, the partnership decided to admit Idris who is to take 1/4 of future profits without changing the ratio of Marhumu and Yusuf.
What is the new profit-sharing ratio of Marhumu and Yusuf?
- A. 50% : 25%
- B. 50% : 20%
- C. 25% : 50%
- D. 25% :25%
Partners’ salaries and drawings are usually posted to the?
- A. trading account
- B. current account
- C. capital account
- D. partners' account
The excess of income over expenditure is usually transferred to the?
- A. accumulated fund
- B. profit and loss account
- C. current assets in the balance sheet
- D. current liabilities in the balance sheet
Given:
Club trading profit N12,000
Members” subscription N15,000
Profit on sale of fixed assets N2,500
Loss on sale of investments N1,000
Wages N16,500
Other expenses N10,000
Determine the club”s excess of income over expenditure?
- A. N500
- B. N1,500
- C. N2,000
- D. N2,500
A club received rent N10,000 and donation N30,000. It paid N6,000 for entertainment and is still owing N16,000.
The balance of the payments account is?
- A. N24,000
- B. N22,000
- C. N14,000
- D. 8,000
- E. NO OPTION INDICATED
Use the information below to answer questions Subscription received during the year N30,000 Subscription owed last year N4,000 Subscription received for next year N6,000
What is the subscription to be charged to income and expenditure account?
- A. N36,000
- B. N34,000
- C. N30,000
- D. N20,000
Use the information below to answer questions
Subscription received during the year N30,000
Subscription owed last year N4,000
Subscription received for next year N6,000
The N6,000 subscription received is?
- A. current asset
- B. current liability
- C. fixed asset
- D. capital
Lubricating oil and spare parts of machinery are examples of?
- A. direct materials
- B. indirect materials
- C. indirect expenses
- D. direct expenses
Use the information below to answer question 25 and 26.
Bar opening stock N10,000
Amount owed to bar suppliers at
the end the beginning of the year N10,000
Bar sales N50,000
Bar credit purchases N40,000
Payment to suppliers N30,000
Bar expenses N1,000
Bar closing stock N15,000
How much is owed to suppliers?
- A. N50,000
- B. N40,000
- C. N30,000
- D. 20,000
Use the information below to answer question 25 and 26.
Bar opening stock N10,000
Amount owed to bar suppliers at
the end the beginning of the year N10,000
Bar sales N50,000
Bar credit purchases N40,000
Payment to suppliers N30,000
Bar expenses N1,000
Bar closing stock N15,000
What is the bar profits?
- A. N20,000
- B. N15,000
- C. N14,000
- D. N10,000
Given:
Direct material N2,500
Direct labour N5,000
Direct expenses N1,000
Overhead expenses N1,500
From the data above, compute the prime cost?
- A. N8,500
- B. N7,500
- C. N6,500
- D. 6,000
Use the information below to answer question
Given: 31/12/98 31/12/99
Assets: Plant and Mach. N1,500 N1,200
Fixtures N700 N520
Stock N500 N600
Debtors N900 N400
Cash N200 N300
Liabilities: Creditor N500 N600
Loan N600 N400
Determine the total fixed assets from the opening balance sheet?
- A. N2,200
- B. N2,020
- C. N1,720
- D. N2,070
For an incomplete record to provide necessary information, it must be converted to?
- A. complete records
- B. double entry records
- C. statement of affairs
- D. single entry
Use the information below to answer question . Purchases ledger opening balances N4,000 Sales ledger opening balances N6,000 Credit purchases during the year N25,000 Discounts allowed N1,000 Returns inwards N2,000 Credit sales during the year N10,000 Returns outwards N6,000
What is the purchases ledger balance?
- A. N4,000
- B. N23,000
- C. N24,000
- D. N29,000
Use the information below to answer question .
Purchases ledger opening balances N4,000
Sales ledger opening balances N6,000
Credit purchases during the year N25,000
Discounts allowed N1,000
Returns inwards N2,000
Credit sales during the year N10,000
Returns outwards N6,000
Calculate the sales ledger balance?
- A. N3,000
- B. N6,000
- C. N10,000
- D. N13,000
A reduction in the catalogue price of an article given by a wholesaler to a retailer is called a?
- A. bad debt
- B. trade discount
- C. premium
- D. cash discount