The price paid by an acquiring company is
- A. conversion fee
- B. premium
- C. sales consideration
- D. purchases consideration
Use the following information to answer the given question
\(\begin{array}{c|c} & N\\ \text{Stock of raw materials – 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials – 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor’s salary} & 15,000\end{array}\)
Cost of raw materials used is
- A. N1,175,000
- B. N1,140,000
- C. N1,075,000
- D. N1,060,000
Use the following information to answer the given question
\(\begin{array}{c|c} & N\\ \text{Stock of raw materials – 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials – 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor’s salary} & 15,000\end{array}\)
The prime cost is
- A. N1,175,000
- B. N1,140,000
- C. 1,075,000
- D. N1,060,000
Use the following information to answer the given question
\(\begin{array}{c|c} & N\\ \text{Stock of raw materials – 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials – 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor’s salary} & 15,000\end{array}\)
Total overhead cost is
- A. N105,000
- B. N95,000
- C. N50,000
- D. N15,000
When both debit and credit entries in respect of a transaction are made in the same ledger account, this is
- A. a ledger entry
- B. an accounting entry
- C. a folio entry
- D. a contra entry
The class of shareholders who are paid last in the event of wedding-up are
- A. ordinary
- B. preference
- C. founder
- D. treasury
A class of preference shares in which dividend rights are carried forward is
- A. cumulative
- B. participating
- C. redeemable
- D. floating-rate
The excess of current assets over current liabilities is
- A. working capital
- B. preference capital
- C. loan capital
- D. founder's capital
Goodwill is taken into account in partnership when
- A. the business has good customer relations
- B. the business is making huge profit
- C. a new partner is admitted
- D. a parner becomes dormant
When partners maintain fixed capital accounts, the correct entries for a partner’s share of profit is
- A. debit profit and loss appropristion account, credit current Account
- B. Debit profit and loss appropriation account, credit capital account
- C. debit current account, credit caapital account
- D. debit profit and loss account, credit current account
When discount is allowed, the accounting entry is debit Discount allowed and credit
- A. suspense account
- B. expense account
- C. debtors account
- D. creditors account
Which of the following is not correct?
- A. credit sales are entered on debit side of the customers personal account
- B. credit purchases are entered on the debit side of the supplier's personal account
- C. return inward are entered on the credit side of the customer's personal account
- D. returns outwards are entered in on the debit side of the supplier's account
Which of the following is not a debit item in the partnership profit and loss appropriation account?
- A. interest on partners drawings
- B. parners salaries
- C. interest on partners capital
- D. share of profit
Use the following to answer the given question
\( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \text{Sales} & 3,850\end{array}\)
The cost of goods available is
- A. N3,850
- B. N2,900
- C. N2,300
- D. N2,000
Use the following to answer the given question
\( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \text{Sales} & 3,850\end{array}\)
Gross profit is
- A. N1,850
- B. N1,250
- C. N950
- D. N650
The accounting concept which allows the use of a particular method for treating a transaction for a reasonable number of years is
- A. consistency
- B. cost
- C. accrual
- D. conservatism
a decrease in the provision for doubtful debts result in
- A. an increase in net profit
- B. a decrease in gross profit
- C. an increase in gross profit
- D. a decrease in net profit
The balance on the sales ledger control Account at the end if the accounting year represents total
- A. trade debtors at the end of the year
- B. cash sales for the year
- C. credit sales for the year
- D. amount transferred from the sales day book
Net debtors is
- A. debtors less provision for bad debts
- B. debtors plus provision for bad debts
- C. debtors less prepayments
- D. debtors plus prepaments
Which of the following is correct about cost of goods sold?
- A. opening stock + purchases - closing stock
- B. opening stock + sales + closing stock
- C. openig stock - purchases - closing stock
- D. opening stock + sales + closing stock
The amount set aside out of profit for a specific purpose is
- A. provision
- B. reserve
- C. depreciation
- D. depletion