Companies issue shares to the public in order to
- A. reduce the number of directors
- B. reduce the number of shareholders
- C. raise capital
- D. generate profit
When bank charges are deducted from a customer’s account, the balance on the bank statement would be
- A. more than the cash book balance
- B. less than the cash book balance
- C. equal to the cash book balance
- D. added to the cash book balance
Where fixed capital account is maintained, partners Share of profit is transferred to the
- A. debit side of the capital account
- B. credit side of the capital account
- C. credit side of partner's current account
- D. debit side of partners current account
When closing stock is undervalued, the cost of goods sold would be
- A. overstated and the gross profit understated
- B. understated and the gross profit overstated
- C. understated and the gross profit overstated
- D. understated and the gross profit understated
Goods bought from Sanmah for Le1,600 was entered into Shamail’s Account. This is an error of
- A. compensation
- B. commission
- C. original entry
- D. principle
In a single-entry accounting, purchases are ascertained using a
- A. trading account
- B. debtors control account
- C. statement of affairs
- D. creditors control account
Use the following information to answer the question below
Opening capital —10,800
Drawings———– 2,500
Trade creditors —-2,560
Trade debtors ——2,880
Cash in hand ——-1,000
Net profit————- 6,000
The working capital is
- A. 6,440
- B. 3,880
- C. 3,500
- D. 1,320
Use the following information to answer the question below
Opening capital —10,800
Drawings———– 2,500
Trade creditors —-2,560
Trade debtors ——2,880
Cash in hand ——-1,000
Net profit————- 6,000
The closing capital is
- A. 16,800
- B. 14,300
- C. 8,300
- D. 7300
Quick ratio is calculated as X-y:z, where
- A. x= stock; y=current assets and z= long-term liabilities
- B. x = current assets; y = debtors and z= current liabilities.
- C. x=current assets; y= stock and z=current labilities
- D. x= debtors; y= stock and z=current assets.
The mark-up on a product is 2/3. The margin is
- A. 3/5
- B. 2/5
- C. 1/3
- D. 2/9
The directors of Olu Ltd. recommended a dividend of 10% on 1,000,000 ordinary share capital of N2.00 each. The amount of dividend declared is
- A. N200,000
- B. N100,000
- C. N20,000
- D. N10,000
Goodwill is recognized in partnership when
- A. the business makes a huge profit
- B. the business has adequate bank balance
- C. a partner is dormant
- D. a new partner is admitted
Use the following information to answer the question below
April 11: Sold goods for cash N50,000
April 20: Bought goods for cash N30,000
April 26: Bought postage stamp N5,000
April 28: Cash sales N49,000
April 29: Cash purchases N11,000
April 30: Paid salaries N18,000
The cash balance at the end of the period is
- A. N99,000
- B. N64,000
- C. N35,000
- D. N34,000
Use the following information to answer question below
April 11:Sold goods for cash N50,000
April 20: Bought goods for cash N30,000
April 26: Bought postage stamp N5,000
April 28: Cash sales N49,000
April 29: Cash purchases N11,000
April 30: Paid salaries N18,000
Total cash receipts for the period is
- A. N99,000
- B. N64,000
- C. N50,000
- D. N35,000
The concept which seeks to prevent profits from being overstated is
- A. materiality
- B. consistency
- C. prudence
- D. periodicity
Kadiri paid his debt to Suleman by cheque. The accounting entries in Kadiri s books are: debit
- A. Bank Account; credit Suleman's Account
- B. Bank Account, credit Debtors Account
- C. Suleman's Account; credit Bank Account
- D. Suleman's Account; credit Cash Account
In public sector accounting, salaries of employees are classified as
- A. capital expenditure
- B. capital receipt.
- C. recurrent expenditure
- D. recurrent receipt
Use the following information to answer questions the question below
01/01/17 31/12/17
Trade creditors 630,000 780,000
Stock 540,000 480,000
Trade creditors
Stock
Cash paid to trade creditors in 2017 was N2,700,000. 00
What was the purchase for 2017
- A. N3,480,000
- B. N2,850,000
- C. N2,700,000
- D. -N2,550,000
Use the following information to answer questions the question below
01/01/17 31/12/17
Trade creditors 630,000 780,000
Stock 540,000 480,000
Trade creditors
Stock
Cash paid to trade creditors in 2017 was N2,700,000. 00
The cost of goods sold was?
- A. N3,330,000
- B. N2,910,000
- C. N2,760,000
- D. N2,610,000
ln a not-for-profit organization, the accumulated fund is
- A. current assets plus fixed assets less total liabilities
- B. long-term liabilities plus current liabilities
- C. fixed assets plus current assets plus long-term liabilities
- D. fixed assets less long-term liabilities less current liabilities
The primary concern of shareholders in a business is the
- A. ascertainment of taxable profit
- B. dividend payable
- C. ability to pay interest
- D. welfare of employees