In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a
- A. surplus
- B. shortfall
- C. loss
- D. deficit
A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?
- A. D33,000
- B. D28,000
- C. D23,000
- D. D5,000
When an asset is sold, the entries for the accumulated depreciation are; debit
- A. assets disposal account; credit provision for depreciation account
- B. provision for depreciation account; credit asset disposal account
- C. fixed asset account; credit asset disposal account
- D. asset disposal account; credit fixed asset account
The sum of direct cost in a manufacturing account is
- A. production cost
- B. prime cost
- C. total cost
- D. finance cost
The accounting concept underlying the treatment of personal expenses of the business owner as drawing is
- A. periodicity
- B. accrual
- C. entity
- D. materiality
Which of the following items is not contained in the Receipts and Payments Account?
- A. Subscription paid in advance
- B. stock paid for in advance
- C. outstanding wages and salaries
- D. donations
which of the following is not an administrative expenses in a manufacturing organization?
- A. discounts allowed
- B. office electricity
- C. stationery
- D. insurance
Net profit in a business is
- A. the amount of money taken out of the business by the owner
- B. the cash in the business bank account
- C. the difference between sales and cost of sales
- D. sales revenue less cost of sales expenses
Which of the following accounts would appear in the nominal ledger? i. Sanison’s account(a debtor) ii. Motor vehicle account iii. Sales account iv. Rent and rates account
- A. i, ii and iii only
- B. i, iii and iv only
- C. ii, iii and iv only
- D. iii and iv only
The purchase of ten ceiling fans by Akpan Electronic Enterprises will be recorded as
- A. an acquisition of fixed asset
- B. an expense in its general office expense account
- C. part of capital in the capital account
- D. an acquisition of stock
Use the information to answer the question given.
\(\begin{array}{c|c} \text{Cost of motor vehicle – 1\1\12} & ₦ 85,000\\ \text{Residual value} & ₦5,000 \\ \text{Estimated useful lifespan 10 years} & \end{array}\).
The business make use of the straight line method for providing depreciation, the accumulated depreciation as at 31/12/2013 is
- A. ₦18,500
- B. ₦17,000
- C. ₦16,000
- D. ₦8,000
Us the following information to answer the question given.
\(\begin{array}{c|c} \text{Cost of motor vehicle – 1\1\12} & ₦ 85,000 \\ \text{Residual value} & ₦5,000 \\ \text{Estimated useful lifespan 10 years} & \end{array}\).
The business make use of the straight line method for providing depreciation, the annual depreciation is
- A. ₦9,000
- B. ₦8,500
- C. ₦8,000
- D. ₦6,500
Which of the following is entered in the general journal?
- A. purchase of goods
- B. sale of goods on credit
- C. returns inward
- D. aquisition of fixed assets
An error of principle is made, if
- A. an entry has been made on the wrong class of account
- B. a transaction has been completely omitted
- C. an entry has been made on the wrong side of the two accounts corcened
- D. a transaction is entered in both accounts for the wrong amount
Which of the following is used to record the disposal of a fixed asset?
- A. journal proper
- B. petty cash book
- C. sales day book
- D. purchase day book
Purchase account is overcast by ₦200, while wages account is undercast by ₦200. This is
- A. an error of omission
- B. a compensating error
- C. an error of commision
- D. an error of principal
Which of the following transactions will result in disagreement between the cash book and the bank statements?
- A. selling of goods on credit to a customer
- B. withdrawal of goods by the proprietor for his personel use
- C. cheque paid directly into the bank account by a customer
- D. omission of purchases received from a supplier on credit
Net turnover is referred to as
- A. purchases
- B. assets
- C. sales
- D. profits
The accounting treatment for a dishonored cheque is; debit
- A. customer's account; credit bank account
- B. bank account; credit customer's account
- C. customer's account; credit sales account
- D. sales account; credit customer account
Which of the following subsidiary books involves cash movements?
- A. sales day book
- B. purchases day book
- C. returns inwards book
- D. petty cash book
An example of a credit entry in a profit and loss account is
- A. carriage inwards
- B. carriage outwards
- C. discounts allowed
- D. discounts received