Which of the following accounting records are source documents?
- A. Journal and ledgers
- B. Sales invoice and cash book
- C. Cash book and debit note
- D. sales invoice and debit note
An effective accounting system should provide information
- A. on new product and methods
- B. for cutomer feed back and requirement
- C. on internal and external reporting for managers and third parties
- D. for promoters, directors, labour union and distributors
Which of the following concept stipulates that accounting profit is the difference between revenue and expenses?
- A. Accrual concept
- B. Conservatism concept
- C. Prudence concept
- D. Materiality concept
which of the following factors has aided the development of accounting?
- A. The emergence of nation states
- B. The discovery of mineral resources in commercial quantity
- C. the growth in size of businesses and separation of ownership and management
- D. the development and management of sophisticated monetary system
The amount of individual items on a government budget is called
- A. vote
- B. deposit
- C. loan
- D. grant
The cash bass of accounting requires the recognition of revenue only when they are
- A. due
- B. earned
- C. paid
- D. received
The receipt from a special tax levy to pay maturing interest obligation are recorded in
- A. capital fund project
- B. Debt Service Fund
- C. Tax Assessment Fund
- D. Special Revenue Fund
The expenditure on a good or services which is consumed either immediately or within a current accounting period is called
- A. fixed expenditure
- B. capital expenditure
- C. annual expenditure
- D. recurrent expenditure
An advantage of using accounting ratios is that they
- A. can be easily calculated
- B. facilitate decision making
- C. are stipulated by law
- D. shows error and fraud
The document setting out the regulations regarding shares, meetings and internal organization of a company is known as
- A. memorandum of association
- B. article of association
- C. prospectus
- D. company law
A limited liability company has an authorized share capital of N50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued
What is the issued capital
- A. N40
- B. N48
- C. N50
- D. N80
A limited liability company has an authorized share capital of N50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued
What is the nominal value of each share?
- A. N2
- B. N0.80
- C. N0.60
- D. N0.50
when shares issued are paid for, accounting entry required is
- A. debit bank or cash account and credit share capital and/or premium account
- B. credit bank or cash account and debit share capital and/or premium account
- C. debit shares account and credit capital account
- D. credit shares account and debit capital account
Under which of the following conditions is a partnership dissolved?
- A. Change of partnership's head office
- B. admission of a new partner
- C. Purchase of a large quantity of fixed asset
- D. Retirement of a manager who is not a partner
Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.
The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo’s equity in the resulting partnership is
- A. N32,000
- B. N40,000
- C. N42,000
- D. N50,000
Goodwill appears in the books of a business only if it has been
- A. purchased at a certain price
- B. raised in connection with the admission of a new partner
- C. raised to account for the true value of a business on the death of a partner
- D. raised in order to prevent the balance sheet showing that the business is insolvent
The major distinguishing element between the final accounts of a partnership and a sole trader is the
- A. drawings account
- B. appropriation account
- C. capital account
- D. creditors account
The net profit from a trading account of a non-profit making organization would be treated as income in the
- A. income and expenditure account
- B. receipt and payment account
- C. balance sheet
- D. statement of affairs
The major difference between the receipt and payment account and the income and expenditure account is that while the former
- A. is kept by the treasurer, the latter is not
- B. deals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year
- C. is a T-account, the latter is not
- D. is not in the ledger, the latter is
Which of the following categories of labour cost will be classified as direct?
- A. accountant's salary
- B. factory workers' salary
- C. managing director's salary
- D. cashier's salary
From which of the following sources are creditors control account most likely to be posted?
- A. supplier's invoices
- B. cash disbursements journal
- C. subsidiary debtors ledger
- D. purchases journal