Which of the following accounts or statements is used to determine credit purchase figures in incomplete records?
- A. Bank Account
- B. Control Account
- C. Profit and Loss Account
- D. Statement of Affairs
A disadvantage of single entry system of book-keeping is that
- A. the profit for the period is reduced
- B. it is difficult to determine profit for the period
- C. total sales for the period is reduced
- D. the owner of the firm withdraws money from the enterprise
Which of the following items will appear in the Total Creditors Account?
- A. Discount allowed
- B. credit sales
- C. Discount received
- D. cash purchases
The purpose of keeping Sales and Purchases Ledger Control Account is to
- A. match credit ids Sales and credit purchases
- B. equate debtors balance to creditors balance
- C. verify total debtors and total creditors balances
- D. determine cash sales and cash purchases
In a manufacturing enterprise depreciation of plant is treated in the
- A. trading account
- B. profit be and loss account
- C. manufacturing account
- D. appropriation account
The production cost of a manufacturing firm is made up of
- A. indirect materials
- B. factory overheads and prime cost
- C. direct materials and wages
- D. factory overheads and directs materials
Factory wages from part of
- A. administration cost
- B. selling and distribution cost
- C. overhead cost
- D. prime cost
The excess of the market value of goods produced over the cost of production is
- A. profit on manufacturing
- B. net profit
- C. goodwill
- D. gross profit
Use the following information to answer the question below
Sales ledger balances 01/06/12—— 9,000
30/06/12————————————30,000
Total for the month: Cash sales—– 10,000
Returns inwards ————————–3,000
Cheque dishonoured——————– 4,000
The credit sales for the month is?
- A. 36,000
- B. 31,000
- C. 20,000
- D. 30,000
Use the following information to answer the question below
Sales ledger balances 01/06/12—— 9,000
30/06/12————————————30,000
Total for the month: Cash sales—– 10,000
Returns inwards ————————–3,000
Cheque dishonoured——————– 4,000
The total sales for the month is?
- A. 36,000
- B. 31,000
- C. 30,000
- D. 10,000
An organization purchased a piece of equipment for N112,000. It is expected to be used for 6 years then sold for N16,000. What is the annual amount of depreciation, if the straight-line method is used?
- A. N16,000
- B. N15,000
- C. N12,800
- D. N12,000
The cost of transporting purchased goods t0 the warehouse is charged to the
- A. profit and loss account
- B. appropriation account
- C. trading account
- D. income surplus account
Carriage outward expenses of a business are treated in the
- A. balance sheet
- B. income sur plus account
- C. profit and loss account
- D. trading account
The prudence concept demands that
- A. care is exercised in recognition of profit
- B. loss should be anticipated
- C. profit should be reported
- D. income should be recognized and disclosed
Which of the following accounts are found in the nominal ledger?
I. Advertising
ll.Motor repairs
lll. Additions to the motor vehicle
- A. materiality
- B. periodicity
- C. objectivity
- D. conservatism
The accounting concept that provides that accounting statements should not be influenced by personal opinion is
- A. materiality
- B. periodicity
- C. objectivity
- D. conservatism
Account payable is classified as a
- A. prepayment
- B. provision
- C. current liability
- D. long term liability
The accounts of Jute Enterprise in the books of a supplier will be a
- A. nominal account in the general ledger
- B. personal account in the sales ledger
- C. personal account in the purchases ledger
- D. real account in the general ledger
Which of the following describes a trial balance?
- A. it shows all the entries in the books
- B. It reveals the financial position of a business
- C. It is a list of accounting balances on the books
- D. it is a special account
The effect on profit when the closing stock is understated is
- A. increase in profit
- B. decrease in profit
- C. no change in profit
- D. appropriation of profit
The balance sheet equation shows
- A. current assets minus current liabilities
- B. the difference between fixed assets and current liabilities
- C. assets and sources of financing them
- D. sources of funding owner's equity