If goods were bought from Tanko at a cost price of #9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?
- A. #4,500
- B. #8,550
- C. #9,000
- D. #9,450
The major focus of the trading account is to show
- A. net profit
- B. gross margin
- C. total purchases
- D. total sales
An item credited in the bank statement but yet to be recorded in the firm’s cash book is
- A. bank loan
- B. contract payment
- C. standing order
- D. direct deposit
1. Cash sales
11. Cash purchases
111. Cash discount allowed
1V. Cash payment
V. Cash receipts
Which of the following are recorded on the debit side of the cash book
- A. 1 and 11
- B. 1 and 111
- C. 1 and V
- D. 1 and 1V
A major way by which the headquarters guard against fraud in branches on cash remittance is through the introduction of
- A. imprest system only
- B. direct purchase by branch
- C. separate accountant for the branch
- D. credit sales by only the headquarters
Petty cash book records transactions on
- A. the debit side only
- B. the credit side only
- C. both credit and debit sides
- D. reversed entry
The major advantage of an imprest system is that it
- A. ensures a proper accountability for every expenditure
- B. trains the young accountants in preparation for greater responsibilities
- C. relieves the cheif cashier of the numerous petty cash payments
- D. serves as an analysis column for every expenses
Given:
If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12 and half percent. Assuming #22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company’s cash book?
- A. #25,650
- B. #22,800
- C. #19,950
- D. #18,240
The accounting entries to record a cheque issued by a business is to
- A. debit cash book and credit drawer
- B. credit cash book and debit drawer
- C. debit cash book and credit suspense account
- D. credit cash book and debit suspense account
The book of account in which information from the source documents are recorded consists of
- A. debit and credit notes
- B. ledger and subsidiary books
- C. prepayments and accruals
- D. profit and loss and balance sheet
A ledger is classified into
- A. private, sales and purchases
- B. personal, general and private
- C. general, private and sales
- D. sales, purchases and general
Which of the following affects the accuracy and authenticity of the trial balance?
- A. Error of ommission
- B. Error of commission
- C. Error of transposition
- D. Error of original entry
Aduke Motors bought three Toyota Hilux vans on cash at the cost of #6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the
- A. sales day book
- B. purchases day book
- C. sales subsidiary book
- D. cash book
A cheque of #5,000 paid to Sulieman had been correctly entered in the cash book but had not been entered in Sulieman’s account. To correct this error, debit Sulieman’s account and credit
- A. cash account
- B. bank account
- C. suspense account
- D. purchases account
The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is
- A. matching
- B. consistency
- C. realization
- D. going concern
One of the the differences between bookkeeping and accounting is that the former
- A. records data while the latter interprets
- B. is regarded as the language of the business while the latter ascertains its strenght
- C. interprets data while the latter records it
- D. summarises information while the latter communicates it
An instrument which allows public officers to increase expenditure within a year is
- A. statutory allocation
- B. supplementary budget
- C. virement
- D. warrant
Given:
Assets and Liabilities of a Local Government
Bank balance #6,484,000
Cash # 900,000
General revenue balances #9,774,500
Accrued salaries #1,220,000
Investment in shares #1,480,000
Vehicles #7,620,000
Calculate the liabilities of the local government
- A. #10,994,500
- B. #17,394,500
- C. #18,774,500
- D. #18,874,500
Accountant-general of the federation is responsible for
- A. the general supervision of all auditing personnel in all the ministeries
- B. the compilation of annual financial statement
- C. the interpretation of rules and regulations affecting the private sectors
- D. ensuring the efficient operation of the ministries
The debenture issued at par above the nominal value is said to be issued at a
- A. cost price
- B. mark-up
- C. premium
- D. margin
The distributable profit available to shareholders at the end of each year is the
- A. total profit and debtors balance
- B. general reserve and retained profit
- C. retained profit and fictitious assets
- D. total profit less creditors balance