The main features of the single system are that?
- A. books of accounts are not maintained and business relies only on bank statement
- B. the journal records are absent and only the main ledger is kept 7
- C. there are incomplete classifications and recording procedures
- D. only credit sales transactions and credit purchase are recorded
Depreciation on a particular piece of machinery was N2,700 during the fifth year of its service life and N4,050 during the sixth year. The logical explanation for this is that?
- A. an addition was made to the asset during the sixth year
- B. the estimate of salvage value on this equipment was decreased
- C. a unit-of-output method of depreciation was used during the sixth year
- D. the estimate remaining service life of the assets was increased at the beginning of the sixth year
Chibuike bought 36 notebooks at N10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay?
- A. N338.58
- B. N342.00
- C. N345.42
- D. N360,00
Asa Company bought a vehicle worth N20,000 and the vehicle is to be depreciated at 5%. Using the reducing balance method of depreciation, what would be the value of the asset after 3 years?
- A. N19,000.00
- B. N18,050.50
- C. N17,147.50
- D. 16,290.13
A provision for bad debt account had N3,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/2% of annual sales, what was the credit sales for the period?
- A. N2,100,000
- B. N844,400
- C. N840,000
- D. N500,000
The fixed amount of money given to a petty cashier at the beginning of a period is called?
- A. imprest
- B. petty cash
- C. float
- D. cash advance
Which of the following bank reconciliation items should not be added or subtracted from the bank statement balance to determine the adjusted cash balance?
- A. Outstanding cheques
- B. Bank service charges
- C. Deposit in the mail not yet received by the bank
- D. Bank error, charging a company for another company's cheque
If the total discount allowed in a cash book was N230 and the total discount received was N255, which of the following is true concerning the two discounts?
- A. They must be balanced in the cash book and the difference taken to the debtors ledger
- B. They must be balanced in the cash book and the difference taken to the trial balance
- C. They should not be balanced in the cash book before being taking to the trial balance
- D. They should not appear in the trial balance as they were already either received or paid out
In a cash book, the opening balance was N7,600, closing balance N9,200 and the total cash received during the period was N18,000. What was the amount of cash paid out during the period?
- A. N8,900
- B. N9,800
- C. N14,600
- D. N16,400
A source document for the sales day book is?
- A. a requisition form
- B. an invoice
- C. a customer advice
- D. a credit advice
A basic unifying concept in accounting implies that?
- A. where creditors'account is zero, the assets are equal to the owners' equity
- B. there should be a balance in the creditors' account in order to measure total assets
- C. revenues should be supported by invested and owners'capital
- D. total assets can be less than liabilities and equity
When a proprietor withdraws cash from the business for private use, he?
- A. debits cash account and credits drawings account
- B. credits cash account and debits bank account
- C. debits bank account and credits drawings account
- D. credits cash account and debits drawings account
A bookkeeping error occurs when there is?
- A. a deliberate manipulation of records
- B. unintentional correct posting in the ledger
- C. intentional failure to record transactions completely
- D. incorrect records and oversights that are not intended
The need for changes in accounting theory in Nigeria was influenced by the?
- A. dynamics of commercialization and privatization policies
- B. growh in size of business units
- C. introduction of the structural adjustment programme
- D. inconvertibility of the nation's currency
The basic role of accounting is to?
- A. detect fraud
- B. attest to finacial statements
- C. measure performance
- D. protect sharehlders
Accrual concept stipulates that?
- A. revenue should be recognized when it is earned
- B. costs should be recognized when the expenditure is paid
- C. revenue should be recognized only when cash is paid
- D. costs should be recognized when the are incurred
If a monthly insurance premium is remitted to a company by the state government, the initial deductions from employees are recorded in?
- A. the general fund
- B. agency fund
- C. special fund
- D. general long-term fund
Money not required to meet chargeable expenditure in any fiscal year under cash accounting, should be?
- A. surrendered to the consolidated revenue fund
- B. carried forward to the next financial year
- C. reserved to meetany deficits or contingencies
- D. returned to the taxpayer
In a public corporation, the capital expenditure incurred in a financial period is?
- A. spread over the useful life of the assets through depreciation
- B. apportioned at a pre-determined rate stipulated by law
- C. written off in the year in which they occur
- D. merged with recurrent expenditure and reported in one required lump sum
The term fiscal compliance means?
- A. al financial and related laws and regulations are adhered to
- B. only the budget fir the current period is complied with and no deficits allowed
- C. all physical assets requirements have been met
- D. fiscal planning is necessary for proper accountabilit in the public sector
The difference between the closure of the books of a branch and those of a separate company is that?
- A. there is retained earnings account on the branch books
- B. the revenue and expenses account is closed to branch current account
- C. there is no retained earnings account on the branch
- D. the revenue and expenses account is not closed to the home office current account