A trial balance is a proof of accuracy of
- A. transactions
- B. final accounts
- C. double entry in the ledger
- D. trading account
- E. balance sheet
Cash stolen from branch-taking s is recorded in the Head Office books by debiting
- A. defalcations account and crediting branch stock acccount
- B. mark-up account and crediting branch stock account
- C. defalcations account and crediting profit and loss account
- D. cash account and crediting branch stock account
- E. branch stock account and crediting defalcations account
Mark-up on goods sent to branch offices are recorded in the books by creating
- A. stock adjustment account debiting branch stock account
- B. goods sent to branch account and debiting branch stock account
- C. branchh stock account and debiting stock adjustment account
- D. cash account and crediting branch stock account
- E. branch stock account and crediting defalcations account
A share is under-subscribed when
- A. it is offered for sale at less than the nominal value
- B. it is offered for sale at nominal value
- C. the number of shares applied for is less than the offer
- D. it is offered for sale at more thn norminal value
- E. the number of shares applied for is more than the offer
shares are sold at less than nominal value. They are issued at a
- A. profit
- B. loss
- C. discount
- D. premium
- E. par
An excess of the value of the assets over the purchases consideration for acquisition of business is credited to
- A. general reserve
- B. capital reserve
- C. goodwill
- D. current asset
- E. share capital
Payment for future services are
- A. prepayment
- B. deposit
- C. accruals
- D. invesment
- E. advances
Which of the following is a credit item on an income and expenditure account?
- A. bar expenses
- B. electricity
- C. salaries
- D. subscription
- E. rates
Which of the following is not contained in the sales ledger control account?
- A. receipts from debtors
- B. returns inwards
- C. returns outwards
- D. dishonoured cheque
- E. discunt allowed
Return inwards was understated. The effect is that
- A. amount of goods available was understated
- B. cost of sales was understated
- C. amount of purchase returns was understated
- D. amount of sales was understated
- E. amount of sales returns was understated
Which of the following is true of trade discounts?
- A. they are recorded in the ledger only
- B. they are not different from cash discount
- C. they are recorded in journal onlu
- D. they are recorded in ledgers and journals
- E. each discount receives double entries
The books of accounts are opened by means of a
- A. sales journal
- B. principle journal
- C. purchases journal
- D. return inwards journal
- E. return outwards journal
Use the following to answer the given question
BALANCE SHEET:
\(\begin{array}{c|c} & N & & N \\ \hline \text{Ordinary share capital} & 100,000 & \text{Plant and Machinery} & 60,000 \\ \text{6% preference share capital} & 60,000 & Furniture & 50,000 \\ Reserve & 20,000 & \text{Motor van} & 68,000 \\ & 180,000 & Stock & 14,000 \\ \text{10% Debentures} & 40,000 & Debtors & 36,000 \\ Creditors & 25,000 & Prepyments & 1,800 \\ \text{Accrued Rent} & 3,000 & bank & 18,200 \\ Total & N248,000 & & N248,000 \end{array}\)
The working capacity is
- A. N42,000
- B. N60,000
- C. N68,000
- D. n70,000
- E. N100,000
Use the following to answer the given question
BALANCE SHEET:
\(\begin{array}{c|c} & N & & N \\ \hline \text{Ordinary share capital} & 100,000 & \text{Plant and Machinery} & 60,000 \\ \text{6% preference share capital} & 60,000 & Furniture & 50,000 \\ Reserve & 20,000 & \text{Motor van} & 68,000 \\ & 180,000 & Stock & 14,000 \\ \text{10% Debentures} & 40,000 & Debtors & 36,000 \\ Creditors & 25,000 & Prepyments & 1,800 \\ \text{Accrued Rent} & 3,000 & bank & 18,200 \\ Total & N248,000 & & N248,000 \end{array}\)
What is the equity capital?
- A. N100,000
- B. N120,000
- C. N160,000
- D. N180,000
- E. N220,000
Use the following to answer the given question
BALANCE SHEET:
\(\begin{array}{c|c} & N & & N \\ \hline \text{Ordinary share capital} & 100,000 & \text{Plant and Machinery} & 60,000 \\ \text{6% preference share capital} & 60,000 & Furniture & 50,000 \\ Reserve & 20,000 & \text{Motor van} & 68,000 \\ & 180,000 & Stock & 14,000 \\ \text{10% Debentures} & 40,000 & Debtors & 36,000 \\ Creditors & 25,000 & Prepyments & 1,800 \\ \text{Accrued Rent} & 3,000 & bank & 18,200 \\ Total & N248,000 & & N248,000 \end{array}\)
What is the net total of assets
- A. N178,000
- B. N180,000
- C. N208,000
- D. N220,000
- E. N248,000
Use the following to answer the given question
BALANCE SHEET:
\(\begin{array}{c|c} & N & & N \\ \hline \text{Ordinary share capital} & 100,000 & \text{Plant and Machinery} & 60,000 \\ \text{6% preference share capital} & 60,000 & Furniture & 50,000 \\ Reserve & 20,000 & \text{Motor van} & 68,000 \\ & 180,000 & Stock & 14,000 \\ \text{10% Debentures} & 40,000 & Debtors & 36,000 \\ Creditors & 25,000 & Prepyments & 1,800 \\ \text{Accrued Rent} & 3,000 & bank & 18,200 \\ Total & N248,000 & & N248,000 \end{array}\)
What is the ratio pf debentures to equity?
- A. 1 : 1
- B. 2 : 1
- C. 3 : 1
- D. 5 : 2
- E. 6.8 : 7
Use the following to answer the given question
BALANCE SHEET:
\(\begin{array}{c|c} & N & & N \\ \hline \text{Ordinary share capital} & 100,000 & \text{Plant and Machinery} & 60,000 \\ \text{6% preference share capital} & 60,000 & Furniture & 50,000 \\ Reserve & 20,000 & \text{Motor van} & 68,000 \\ & 180,000 & Stock & 14,000 \\ \text{10% Debentures} & 40,000 & Debtors & 36,000 \\ Creditors & 25,000 & Prepyments & 1,800 \\ \text{Accrued Rent} & 3,000 & bank & 18,200 \\ Total & N248,000 & & N248,000 \end{array}\)
What is the current ratio?
- A. 1 : 1
- B. 1 : 2
- C. 3 : 1
- D. 5 : 2
- E. 6.8 : 7
Use the following to answer the given question
\(\begin{array}{c|c} & N & & N \\ \hline \text{Opening stock} & 1,200 & sales & 29,000 \\ Purchases & ? & \text{Less sales returns } & 500 \\ \text{Add. Carriage Inwards} & 300 & & ? \\ \text{Less return outwards} & 1,570 \\ & 28,500 \\ \text{Less closing stock} & 2,220 & \\ \text{Gross Profit(25% of sales)} & 28,500 & & 28,500 \end{array}\)
The goods profit is
- A. N7,425
- B. N7425
- C. N7,625
- D. N7,925
Use the following to answer the given question
\(\begin{array}{c|c} & N & & N \\ \hline \text{Opening stock} & 1,200 & sales & 29,000 \\ Purchases & ? & \text{Less sales returns } & 500 \\ \text{Add. Carriage Inwards} & 300 & & ? \\ \text{Less return outwards} & 1,570 \\ & 28,500 \\ \text{Less closing stock} & 2,220 & \\ \text{Gross Profit(25% of sales)} & 28,500 & & 28,500 \end{array}\)
What is the cost of goods purchased?
- A. N22,095
- B. N22,395
- C. N22,765
- D. N23,665
- E. N23,965
Use the following to answer the given question
\(\begin{array}{c|c} & N & & N \\ \hline \text{Opening stock} & 1,200 & sales & 29,000 \\ Purchases & ? & \text{Less sales returns } & 500 \\ \text{Add. Carriage Inwards} & 300 & & ? \\ \text{Less return outwards} & 1,570 \\ & 28,500 \\ \text{Less closing stock} & 2,220 & \\ \text{Gross Profit(25% of sales)} & 28,500 & & 28,500 \end{array}\)
The cost of goods available for sale is
- A. N21,375
- B. N22,095
- C. N22,395
- D. N23,595
- E. N25,165
Use the following to answer the given question
\(\begin{array}{c|c} & N & & N \\ \hline \text{Opening stock} & 1,200 & sales & 29,000 \\ Purchases & ? & \text{Less sales returns } & 500 \\ \text{Add. Carriage Inwards} & 300 & & ? \\ \text{Less return outwards} & 1,570 \\ & 28,500 \\ \text{Less closing stock} & 2,220 & \\ \text{Gross Profit(25% of sales)} & 28,500 & & 28,500 \end{array}\)
What is the cost of goods sold?
- A. N19,805
- B. N21,075
- C. N21,375
- D. N21,750
- E. N22,395