To record the transfer of stock from one department to another, the correct entry would be to debit?
- A. goods outwards and credit goods inwards
- B. merchandise account and credit department stock account
- C. department transfering and credit department receivving
- D. department receiving and credit department transfering
The best method of allocating expenses among departments is to?
- A. allocate expenses to each department in proportion to the sales of that department
- B. charge against each department those costs which are within its control
- C. charge expenses against each department in proportion to the purchases of that department
- D. allocate expenses to each section of the department in relation to the number of people
Shares issued to a vendor in payment of business purchased would require a debit to?
- A. cash account and credit to share capital account
- B. share capital account and credit to vendor's account
- C. vendor's account and credit to share capital account
- D. share capital account and credit to cash account
Calls in advance are treated in the balance sheet as?
- A. current asset
- B. current liability
- C. fixed assets
- D. fixed liability
If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?
- A. preliminary expenses, credit cash accounts
- B. promoter, credit creditors' accounts
- C. lawyer's credit cash accounts
- D. cash , credit incorporation accounts
Which of the following events increases a corporation’s shareholders equity?
- A. Donation of shares out of the corporation's own stock to the corporation
- B. The corporation's purchase of treasury stock
- C. Shares of previously subscribed stock issue to subscribing stockholders
- D. A municipality donation of land to the corporation
The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?
- A. earning per share
- B. redemption price per share
- C. book value per share
- D. call price per share
If a sole proprietorship is purchased for cash, then?
- A. the purchaser debits his business purchase account with the consideration he pays
- B. all assets and liabilities must be bought
- C. goodwill results where value of assets
- D. the vendor debits his business purchase account with the considerstion he receives
Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?
- A. they will simply continue since there are no new members
- B. the partnership is formally ended and new company books opened
- C. the shares and all other items will be shared equally and not in their former ratios
- D. computation of goodwill must be done as it is legally required
When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner’s?
- A. goodwill account balance
- B. current account credit balance
- C. current account debit balance
- D. profit and loss credit balance
As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?
- A. N7,500
- B. N9,000
- C. N12,500
- D. N20,000
Goodwill can be valued in partnership when?
- A. a partners make profits
- B. large losses are made
- C. a partner retires
- D. a new branch is opened
A credit balance on a receipt and payments account indicates that the non-profit making organization?
- A. had more revenues than expenses during the period
- B. did not owe much liabilities during the period
- C. received more cash than it paid out during the period
- D. made more cash payments than it received during the period
Given:
Club N150
Cash sales N4,850
Club debtors at close N900
Cash received from debtors N550
What is the amount of club sales?
- A. N6,150
- B. N4,850
- C. N4,650
- D. N1,300
Receipt and payments account of a non-profit making organization is principally a summary of the?
- A. bak entries
- B. cash bok entries
- C. expenditure entries
- D. balance sheet entries
The difference between the factory cost of production and the prime cost of production is?
- A. direct materials
- B. direct labour
- C. selling expenses
- D. overhead
Manufacturing costs can be classified based on?
- A. timing of charges degree of averaging and size of capital
- B. degree of averaging, ease of traceability and timing of charges
- C. degree of averaging, size of floor space occupied and cost accounts
- D. number of employees, timing of charges and management style
Lawal and co makes blocks and sell to builders.
In computing prime cost, which of the following costs would be considered appropriate?
- A. Cement, sand and carriage outwards
- B. Water carriage inwards and cement
- C. Sales boys'wages, cement and sand
- D. Carriage outwards,carriage inwards and cement
When the factory cost of production has been ascertained, manufactured goods are transferred to trading account by?
- A. debting manufacturing account and crediting trading acccount
- B. crditing sales account and debtiting trading account
- C. debiting sales account and crediting trading account
- D. crediting manufacturing account and debiting trading account
In dealing with incomplete records, fixed assets are posted to?
- A. opening profit and loss as brought forward figures
- B. closing balance sheet as carried forward figures
- C. closing balance sheets as brought forward figures
- D. closing profit and loss as brought forward figures
The principal function of a sales ledger control account is to?
- A. serve as internal check and provide quick information for the preparation of interim financial statements
- B. serve as external check and provide quick information for the preparation of interim financial statements
- C. provide quick information for the preparation of customers' statement
- D. provide information for the control of salesmen's activities