Use the following information
\(\begin{array}{c|c} & ₦ \\ \hline \text{Net profit} & 60,000\\ \text{Total assets} & 520,000\\ \text{Current liabilities} & 150,000 \\ \text{Current assets} & 280,000 \end{array}\)
The current ratio is?
- A. 1.87 : 1
- B. 1 : 1.87
- C. 1 : 2
- D. 2 : 1
Which of the following is not a book of original entry?
- A. cash book
- B. purchases ledger returns
- C. returns outwards journal
- D. general journal
A petty cashier received a float of GHC 84. The imprest is
- A. GHC 204
- B. GHC 120
- C. GHC 84
- D. GHC 36
A dishonored cheque is
- A. debited in cash book
- B. credited in the cash book
- C. double entry in the cash book
- D. credited in the bank book
The order of financial accounting process involves i. recording ii. presenting iii. collecting iv. analyzing
- A. I, ii, iii and iv
- B. ii, iii, i and iv
- C. iii, i, ii and iv
- D. iv, iii, ii and iv
A credit balance is
- A. a liability or an expense
- B. an expenditure or an income
- C. an asset or an expense
- D. an income
The capital of a sole trader changes as a result of
- A. paying wages by cash
- B. equipment purchased by cheque
- C. drawing by cheque
- D. purchase on credit
Which of the following is not a characteristic of trial balance?
- A. it has columns for debit and credit balances
- B. total of debit balance equals total of credit balance
- C. it is a statement
- D. it is an account
The lodgement of business cash into the business bank account is an example of
- A. contra entry
- B. bank reconciliation
- C. self-balancing ledger
- D. reversal entry
The distinguishing feature between a two-column cash book is
- A. discount column
- B. cash column
- C. bank column
- D. ledger folio
The principle of double entry bookkeeping states that
- A. every debtor must have a creditor
- B. every account debited must be immediately credited
- C. for every debit entry, there must be a corresponding credit entry
- D. for every double debit, there must be a double credit
A collection of fields relating to one logically definable unit of business information is known as
- A. database
- B. character
- C. byte
- D. record
Which of the following is not a factory overhead cost?
- A. manufacturing wages
- B. factory rent
- C. depreciation of machinery
- D. salary of factory guard
A manufacturing account is drawn up by
- A. firms providing personal services
- B. firms engaged solely in buying and selling of goods
- C. firms which makes and sell articles
- D. non-trading organization
The document prepared by a local/district government to present its annual estimates for a planning period is
- A. a balance sheet
- B. a budget
- C. an income and expendiure account
- D. a cash bppk
Which of the following item is not treated in the profit and loss account?
- A. office expenses
- B. salaries and allowances
- C. carriage inwards
- D. discounts allowed
subscription in advance is classified in the balance sheet as
- A. an asset
- B. a liability
- C. a deficit
- D. a surplus
Use the information to answer the question given.
\(\begin{array}{c|c} \text{Branch stock account (at selling price)} & D346,000 – debit \\ \text{Branch mark-up account} & D62,000 – credit \end{array}\)
The concept applied in calculating the stock figure to be included in the balance sheet at the year end is
- A. matching
- B. consistency
- C. prudence
- D. entiti
Use the information to answer the question given.
\(\begin{array}{c|c} \text{Branch stock account (at selling price)} & D346,000 – debit \\ \text{Branch mark-up account} & D62,000 – credit \end{array}\)
Calculate the stock figure to be included in the balance sheet at the year end
- A. D408,000
- B. D346,000
- C. D284,000
- D. D62,000
Which of the following information is recorded in the returns outwards book?
- A. goods purchased on credit and susequently returned to suppliers
- B. fixed asset bought on credit and subsequently returned to supplier
- C. cash payment received from a customer and subsequently returned to supplier
- D. goods sold to a customer and subsequently returned to the business
The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is
- A. business entity
- B. materiality
- C. dual aspect
- D. realization