A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. The accumulated depreciation at the end of the year 3 using the straight line method is
- A. N9,300
- B. N9,000
- C. N8,700
- D. N6,900
- E. N6,000
A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the reducing balance method, what us the net book value at the end of the year 2? (ignoring residual value)
- A. N10,480
- B. N10,080
- C. N9,680
- D. N9,600
- E. N7,680
A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400.Using the reducing balance method what will be the depreciation charge for year 2 at 20%? (ignoring residual value)
- A. N3,000
- B. N2,900
- C. N2,400
- D. N1,920
- E. N1,536
A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the straight line method, the annual depreciation is
- A. N3,100
- B. N3,000
- C. N2,900
- D. N2,300
- E. N2,000
Which of the following may cause depreciation? i. wear and tear ii. obsolescence and passage of time iii. fluctuation
- A. i, ii and iii
- B. i and ii
- C. i and iii
- D. ii and iii
- E. iii
Which of the following is not true of capital expenditure? i. assets acquired for the purpose of earning income ii. extension of office building iii. it is incurred and its full benefits consumed in one period of account
- A. i
- B. ii
- C. i and ii
- D. ii and iii
- E. iii
Pending the location of error, the difference disclosed in the trial balance is normally posted to
- A. an adjustment account
- B. a control account
- C. a suspense account
- D. a profit and loss account
- E. a trading account
Trade discount is
- A. allowance for prompt payment
- B. allowance for damaged goods
- C. allowance off price list
- D. discount on creditors
- E. discount on debitors
When a buyer returns damages goods to the seller, the buyer receives a
- A. proforma invoice
- B. credit note
- C. debit note
- D. consiment note
- E. goods return note
Which of the following in a classified form contains a permanent record of all transactions? The
- A. sales day book
- B. cash book
- C. ledger
- D. journal
- E. purchases day book
Outstanding rent of N300 is paid by the proprietor. The effect on the balance sheet is that
- A. both the liability and asset are increased
- B. both the liability and asset are decreased
- C. liability is increased while the asset is decreased
- D. liability is decreased while the asset is increased
- E. both liability and asset remain unchanged
The concept of Double Entry Book-Keeping states that
- A. if you receive goods on credit the seller becomes your creditor
- B. for every debit entry there must be a corresponding credit entry
- C. one party receives and another party gives value
- D. purchases and sales are stated separately
- E. for every seller there is a buyer
The balance the provision for depreciation account is shown in the
- A. trial balance as a debit
- B. trial balance as a credit
- C. balance sheet as a fixed asset
- D. balance sheet as a long term liability
- E. balance sheet as a current liability
Discount allowed would appear on the
- A. debit side of sales control account and the credit side of purchases control account
- B. debit side of sales ledger control account only
- C. debit side of purchases ledger control account
- D. credit side of the sales ledger control account
- E. credit-side of the purchases ledger control account
The balance in the purchases ledger control account is
- A. total purchases
- B. total sales
- C. the total of the debtors
- D. the total of the creditors
- E. the total credit purchases
Which of the following show s the stock at the start of an accounting period?
- A. appropriation account
- B. current assets in the balance sheet
- C. current liabilities in the balance sheet
- D. tradng account
- E. profit and loss account
A business marked up its cost by 50%. This would mean a gross profit of
- A. 33\(\frac{1}{3}\)% on the cost price
- B. 50% on the selling price
- C. 66 \(\frac{2}{3}\)% on the selling price
- D. 66\(\frac{2}{3}\)% on the market price
- E. 33\(\frac{1}{3}\)% on the selling price
The drawings account of a sole proprietorship is transferred to the
- A. capital account
- B. debit side of the trading account
- C. credit side of the prfit and loss account
- D. current liabilities in the balance sheet
- E. current assets in the balance sheet
Which of the following would be posted to the proprietor’s capital account?
- A. gross sales
- B. gross profit
- C. net sales
- D. net profit
- E. manufacturing profit
A sales for N2,570 was recorded in the day book as N2,750. The error committed was
- A. compensating error
- B. error of omission
- C. error of principle
- D. error of original entry
- E. erroe of transportation
A cheque for N400 drawn in favour of Jeje was posted to the credit of his account. The entry necessary to correct the error is
- A. a debit suspense account N800,credit Jeje's account N800
- B. debit bank to correct N400, credit Jeje's account N400
- C. debit suspense account N400, credit Jeje's account N400
- D. debit Jeje's account N800, credit suspense account N800
- E. debit Jeje's account N400, credit suspense account N400