An amount set aside to meet expenses whose value is not certain is a
- A. reserve
- B. liability
- C. provision
- D. prepayment
A reserve is an amount
- A. set aside from profit for an unknown liability
- B. of loss from trading activities
- C. of profit from trading activities
- D. set aside from profit for a specific purpose
Use the following information to answer the question below
Nzemaman Local Government incurred the following expenditure in the year 2015.
Construction of market stalls 120,000
Staff salaries——————- 40,000
Purchase of stationery——— – 9,000
Sinking of boreholes————
Building of classrooms
Maintenance of vehicles
Purchase of equipment
Capital expenditure for the local government is
- A. D 473,000
- B. D438,000
- C. D 422,000
- D. D 410,000
Use the following information to answer the question below
Nzemaman Local Government incurred the following expenditure in the year 2015.
Construction of market stalls 120,000
Staff salaries——————- 40,000
Purchase of stationery——— – 9,000
Sinking of boreholes————
Building of classrooms
Maintenance of vehicles
Purchase of equipment
Recurrent expenditure for the year is
- A. D 112,000
- B. D 84,000
- C. D 77, 000
- D. D 49,000
Which of the following is not a method of charging goods to the branch by its head office?
- A. Net realizable value
- B. Cost price
- C. Cost-plus profit
- D. Selling price
The accounting entries when goods are sold on credit at the branch are debit
- A. Branch Debtors Account; credit Sales Accounts
- B. Branch Current Account; credit Head Office Current Account
- C. Branch Debtors Account; credit Head Office Current Account
- D. Head Office Current Account; credit Sales Accounts
A branch that keeps its own records prepares the records of transactions with the head office in the
- A. Branch Current Account
- B. Branch Stock Account
- C. Head Office Current Account
- D. Profit and Loss Account
In departmental accounting, when goods are sent from one department to another for sale the transaction is treated as
- A. interdepartmental transfer
- B. inter-departmental sales
- C. intra-departmental purchases
- D. intra-department sales
The objective of a departmental accounts is to ascertain the
- A. number of staff in the department
- B. departmental performance
- C. stock held by the department
- D. departmental labour
When allotment of shares is made applicants for shares of a company become
- A. promoters
- B. creditors
- C. debtors
- D. shareholders
Use the following information to answer the question below
Use the following information to answer the question below
Opening stock———2,300
Purchases————-11,874
Sales——————–18,600
Closing stock———–3,600
Cost of goods sold—11,500
What is the rate of stock turnover?
- A. 7 times
- B. 6 times
- C. 5 times
- D. 4 times
Use the following information to answer the question below
Opening stock———2,300
Purchases————-11,874
Sales——————–18,600
Closing stock———–3,600
Cost of goods sold—11,500
The percentage of gross profit to sales is
- A. 61.82%
- B. 38.17%
- C. 28.49%
- D. 14.25%
Share premium is classified in the balance sheet as
- A. fixed capital
- B. capital reserve
- C. revenue reserve
- D. short-term capital
Working capital is the excess of
- A. current assets over fixed assets
- B. current liabilities over current assets
- C. fixed assets over currents liabilities
- D. current assests over current
Goodwill may be brought into the books when
- A. no partner retires
- B. assets are more than liabilities
- C. profit for the period is high
- D. a new partner is admitted
Interest on partners drawings are debited in the
- A. partners current accounts and credited to the appropriation account
- B. drawings account and credited to the profit and loss account
- C. profit and loss account and credited to the partners current account
- D. profit and loss account and credited to the partners' drawings account
Where there is no agreement between the partners, the Partnership Act states that
- A. 5% interest is to be paid on capital
- B. profit and losses are to be shared in proportion to their capital
- C. 50% interest is to be charged on drawings
- D. no salary is to be paid to partners
In a not-for-profit making organization, the Receipts and Payments Accounts is the equivalent of
- A. Profit and Loss Accounts
- B. Income and expenditure Accounts
- C. Cash Book
- D. Balance Sheet
A statement of affairs shows
- A. receipt and payments
- B. revenue and expenditure
- C. financial position
- D. profit or loss
Donations to a club are
- A. credited to the Income and Expenditure Account
- B. credit to the Receipts and Payments Account
- C. debited to the Income and Expenditure Account
- D. debited to Donation Accounts
A trader sells goods at an average margin of 20%. His cost of sales for the month amounted to N720,000. What is his profit figure?
- A. N900,000
- B. N864,000
- C. N840,000
- D. N180,000