Deferred charges are also known as
- A. accrued expenses
- B. accrued income
- C. prepaid expenses
- D. income received in advance
- E. preliminary expenses
Fixed assets include
- A. prepayment
- B. stock
- C. accrual
- D. land
- E. debenture
A machine bought for N7,000 was estimated to have a useful life of 4 years and a scrap value of N500. What is the Net book value of the machine at the end of the second year, Using the straight line method
- A. N3,250
- B. N3,562
- C. N3,656
- D. N3,750
- E. N4,062
A machine bought for N7,000 was estimated to have a useful life of 4 years and a scrap value of N500, Using the reducing balance method, what is the amount of depreciation for the second year?
- A. N1,313
- B. N1,4066
- C. N1,625
- D. N1,750
- E. N1,875
A machine bought for N7,000 was estimated to have a useful life of 4 years and a scrap value of N500. Using the straight line method, what was the amount of depreciation charged per annum?
- A. N1,313
- B. N1,406
- C. N1,625
- D. N1,750
- E. N1,875
Patent and Trade mark are classified under
- A. fixed assets
- B. current assets
- C. intangible assets
- D. wasting assets
- E. investments
John brought in an additional plant into his business. What are the accounting entries necessary to reflect the transaction?
- A. debit plant account, credit current account
- B. debit current account, credit plant account
- C. credit plannt account, credit profit and loss account
- D. debit profit and loss account, credit plant account
- E. debit plant account, credit capital account
Goods purchased for N92 was entered in the books as N29. This is an error of
- A. compensation
- B. omission
- C. commission
- D. principle
- E. original entry
A typewriter for office use sold for N5,000 was posted to sales account. This is an error of a
- A. omission
- B. compensation
- C. commission
- D. principle
- E. original entry
Purchase of goods for N1,000 from chukwu had been entered in Cukwura’s account. This is an error of
- A. omission
- B. compensation
- C. commission
- D. principle
- E. original entry
Sale of goods for N500 to Eddy was not posted. This is an error of
- A. omission
- B. compensation
- C. commission
- D. principle
- E. ordinary entry
Drawing appear on the
- A. debit side of the profit and loss account
- B. credit side of te profit and loss account
- C. debit side of the appropriation account
- D. debit side of the current account
- E. credit side of the appropriation account
Which of the following is not a profit and loss appropriation account item?
- A. staff salaries
- B. interest on capital
- C. interest on money advanced by partners
- D. share of profit
- E. interest and drawings
Which of the following does not appear on the debit side of a company’s profit and loss appropriation account?
- A. compny tax
- B. unappropriated surplus
- C. proposed dividend
- D. transfer to rserve
- E. interim dividend paid
Bosun bought goods worth N500 and sold it at a margin of 20% on selling price. For how much did he sell the goods?
- A. N100
- B. N125
- C. N500
- D. N600
- E. N625
Profit expressed as a proportion of cost price is known as
- A. grss profit
- B. profit make-up
- C. profitt margin
- D. profit percentage
- E. profit ratio
Which of the following errors will not allow a trial balance to agree?
- A. where a transaction is completely omitted from the books
- B. where the correct amount is entered but in the wrong account
- C. where the figure entered on one side is different from the one entered on the other side
- D. where an item is entered in the wrong class of account
- E. where the correct amount is used but each item is shown on the wrong side of the account
Debtors on 1st January was N1,490 and sales for the year was N5,760. Cash received from debtors during the year was N5,410. Bad debt written off was N410. Discount allowed amounted to N320. What was the net profit for that year, assuming a gross profit of N3,650 was made?
- A. N2,920
- B. N3,240
- C. N3,330
- D. N5,340
- E. N5,440
Debtors on 1st January was N1,490 and sales for the year was N5,760. Cash received from debtors during the year was N5,410. Bad debt written off was N410. Discount allowed amounted to N320. What was the debtors’ balance at the end of the year?
- A. N1,110
- B. N1,430
- C. N1,520
- D. N1,750
- E. N2,980
A cheque drawn for N1200 was entered in the cash book as a receipt. The accounting entries are
- A. credit cash account, debit bank account with N1,200
- B. debit cash account, creidit bank account with N1,200
- C. credit cash account, debit suspense account with N2,400
- D. debit cash account, debit suspense account with N2,400
- E. credit bank account, debit suspense account with N2,400
Creditors at start was N940 and purchases for the year was N4,060. During the year, cash paid to creditors was N3,890. N490 was received as discount. What is the creditors amount in the balance sheet?
- A. N450
- B. N620
- C. N660
- D. N1,110
- E. N1,430