The amount for which a business is sold is known as
- A. goodwill
- B. capital reserve
- C. purchase consideration
- D. premium
- E. equity
An expense becomes an accrual because it
- A. is due for payment
- B. is a Profit and Loss Account item
- C. is a Trading Account item
- D. is to be paid within the next one year
- E. must appear in the balance sheet
Use the following information to answer this question
Kudi Local Government Council incurred the following expenditure in 1995:
N
Payment of salaries 140,000
Purchase of drugs for dispensaries 80,000
Purchase of books for Library 30,000
Sinking of wells 70,000
Extension of Council offices 160,000
The amount of revenue expenditure for 1995 was
- A. N26,000
- B. N230,00
- C. N220,000
- D. N160,000
- E. 140,000
Use the following information to answer the given question
Kudi Local Government Council incurred the following expenditure in 1995:
\(\begin{array}{c|c} & N \\ \hline \text{Payment of salaries} & 140,000 \\ \text{Purchase of drugs for dispensaries} & 80,000 \\ \text{Purchase of books for Library} & 30,000 \\ \text{Sinking of wells} & 70,000 \\ \text{Extension of Council offices} & 160,000 \end{array}\)
The amount of capital expenditure for 1995 was
- A. N260,000
- B. N230,000
- C. N220,000
- D. N160,00
- E. N140,000
A cash discount is a
- A. Trading Account item
- B. Profit and Loss Account item
- C. Appropriation Account item
- D. Receipts and Payments Account item
- E. Balance Sheet item.
A provision is
- A. an expense of business to be paid for in cash
- B. an amount of loss from trading activities
- C. a loss in value of all business assets
- D. an expense the amount of which is not certain
- E. an amount set out of profit for other uses
Which of the following is not a personal account?
- A. Bolaji Account
- B. Drawings Account
- C. P.Z. Plc Account
- D. Cash Account
- E. Acada Club Account?
An item is fictitious because it
- A. does not exist
- B. is too costly
- C. is worthless
- D. cannot be sold for cash
- E. is bought on credit
A real account is the account of
- A. expenses or losses
- B. gains or income
- C. physical tangible items
- D. fictitious items
- E. current liabilities
A ledger is a
- A. book of accounts
- B. summary of entries
- C. book of original entry
- D. double entry posting
- E. record of credit transactions
Use the following information to answer this question
A company charges out goods to a branch at cost plus 25 percent. It invoiced N12,00 worth of goods
The double entry required for the mark-up is debit Branch
- A. Sales Account, credit Branch Adjustment Account
- B. Adjustment Accoutnt, credit Branch Stock Account
- C. Stock Account, credit Branch Adjustment Account
- D. Adjustment Account, credit Branch Profit and Loss Account
- E. Profit and Lost Account, credit Branch Stock Account
Use the following information to answer this question
A company charges out goods to a branch at cost plus 25 percent. It invoiced N12,00 worth of goods
The mark-up is
- A. N15,000
- B. N9,000
- C. N4,000
- D. N3,000
- E. N2,000
Which of the following is not a source document for recording sales?
- A. Debit note
- B. Credit note
- C. Receipt
- D. Sales journal
- E. Invoice
A financial plan of action expressed in monetary terms is known as
- A. imprest
- B. consolidated fund
- C. warrant
- D. budget
- E. development fund
Where a business is purchased, the full amount of the purchase consideration is credited to
- A. Purchase of Business Account
- B. Creditor's Account
- C. Vendor's Account
- D. Purchaser's Account
- E. Debtor's Account
Which of the following is an advantage of the impurest system?
- A. making hig profits in the business
- B. Rewarding the imprest holder
- C. Easy prearation of the final accounts
- D. Meeting small items of expenditure
- E. Enabling the Trial Balance to agree
In Manufacturing Account, prime cost plus factory overhead is known as
- A. conversion cost
- B. cost of raw materials consumed
- C. total cost
- D. production cost
- E. cost of work in progress
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
The profit on sale was
- A. N8.00
- B. N7,000
- C. N6,000
- D. N5,000
- E. N1,000
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
Accumulated depreciation at the time of sale was
- A. N16,000
- B. N14,000
- C. N12,000
- D. N8,000
- E. N6,000
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
The net book value at the time of sale was
- A. N16,000
- B. N14,000
- C. N12,000
- D. N8,000
- E. N6,000
Which of the following is a normal account?
- A. Machinery
- B. Debtors
- C. Creditors
- D. Salaries
- E. Goodwill