The instrument that are generated when firms enter into business transactions with others are called
- A. purchase document
- B. journals
- C. source documents
- D. invoices
Creditors use Accounting information for the purpose of
- A. planning sales to a company
- B. controlling a company's affairs
- C. investing in a company
- D. assessing a company's liquidity
In preparing accounting records, the owner of a business and the business are treated as
- A. the same person
- B. having business relationship
- C. separate legal entities
- D. partners
The most important reason for studying accounting is that
- A. the information provided by accounting is useful in making decision
- B. Accounting plays an important role in the society
- C. the study of Accounting leads to challeging career
- D. Accounting provides gross profit information
A government accounting systems must make sure that
- A. revenue exceeds expenditure
- B. all applicable legal provisions are complied with
- C. capital expenditure is equal to revenue
- D. capital project fund is tied to recurrent expenditure
Eko Local Government expenditure
Hospital building ———————- N200,000
Drugs ———————————- N180,000
Hospital beds and mattresses ———— N40,000
Doctors’ and nurses’ salaries ———- N120,000
Administrative expenses —————– N50,000
Recurrent expenditure is
- A. N390,000
- B. N360,000
- C. N350,000
- D. N170,000
Eko Local Government expenditure
Hospital building ———————- N200,000
Drugs ———————————- N180,000
Hospital beds and mattresses ———— N40,000
Doctors’ and nurses’ salaries ———- N120,000
Administrative expenses —————– N50,000
Capital expenditure is
- A. N420,000
- B. N380,000
- C. N240,000
- D. N200,000
Which of the following are sources of revenue to state government in Nigeria?
I Statutory allocation
II Fines from customary courts
III Petroleum tax
IV Income tax
IV
- A. I and II only
- B. II and III
- C. I and IV
- D. III and IV
Which of the following statement is correct about the head office current account and the branch current account?
- A. Both always have debit balances
- B. both always have credit balances
- C. the head office current account has a credit balance while the branch current account has a debit balance
- D. the head office current account has a debit balance while the branch current account has a credit balance
The Asa branch of Emene company Ltd, made a sales of N549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies, what should be the profit of the branch for the period?
- A. N6,500
- B. N64,600
- C. N85,380
- D. N514,600
Departmental accounts re maintained to ascertain the
- A. profits of the entire organization
- B. contribution of each department
- C. expenses of each department
- D. sales of each department
The measure of a company’s ability to pays its debts quickly is called
- A. Current ratio
- B. turnover ratio
- C. acid test ratio
- D. return of investment
A total of 400,000 shares of N1 each are to be issued by Sariki company Ltd at a price of N1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?
- A. N1,000
- B. N1,200
- C. N4,800
- D. N6,000
Which of the following ratios gives an idea of the liquidity of a firm?
- A. Turnover ratio
- B. Quick ratio
- C. Debit ratio
- D. Dividend yield
The conversion of a partners business into a limited liability company affords the
- A. general partners the chance of enjoying the limited laibility protection
- B. limited liability partners the chance of enjoying the limited liability protecction
- C. Creditors the chance of enjoying the limited liabiity protection
- D. debtors the chance of enjoying the limited liability protection
Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu’s salary of N3,000 was made.
Hamed’s share of the profit should be
- A. credited to partners' capital account
- B. credited to partners' current account
- C. credited to appropriation account
- D. debited to partners' drawing account
Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu’s salary of N3,000 was made.
Halidu’s share of the profit is
- A. N7,500
- B. N6,000
- C. N5,400
- D. N4,500
A partnership on admitting a new member, revalued the business’ land and building from N30,000 to N70,00. The difference of N40,000 should be
- A. credited to land and building account
- B. debited to asset revaluation account
- C. credited to asset revaluation account
- D. credited to profit and loss appropriation account
Interest on a partner’s drawings is debited to the
- A. Partners current account and credited to the profit and loss appropriation account
- B. profit and loss appropriation account and credited to the partner's current account
- C. profit and loss account and credited to the partner's current account
- D. Partner's current account and credited to the profit and loss account
Which of the following is a strong feature of partnership?
- A. The life of the partnership is generally assumed to be indefinite
- B. The owners are liable personally for all debts of the business
- C. The transfer of ownership interest is frequent and easy to accomplish
- D. The partnership is complex to form because of many legal and reporting requirements
A member of a club paid N1,000 as is subscription for 1993 and N1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the N1,200 subscription will be treated in the balance sheet as
- A. current asset
- B. current liability
- C. capital
- D. profit