The basis upon which assets of an organization is valued is the
- A. historical concept
- B. business entity concept
- C. periodicity concept
- D. materiality concept
A chain store is known as?
- A. department store
- B. multiple store
- C. supermarket
- D. hypermarket
An unfavourable balance of trade for a country means that her?
- A. imports exceed exports
- B. visible exports exceed invisible import
- C. invisible exports exceed visible exports
- D. imports and exports are equal
Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?
- A. N125 000
- B. N500 000
- C. N50 000
- D. N25 000
Share premium can be used to?
i. write off discount on shares
ii. give loans to directors
iii.pay dividends
iv. pay company’s formation expenses.
- A. i and iv only
- B. i and iii only
- C. ii and iii only
- D. iii and iv only
Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk’s salary). The appropriate distribution of the net loss would be?
- A. Faruk, (N450); Osawe, (N1 050)
- B. Faruk, (N3 150); Osawe, (N7350)
- C. Faruk, (2 250); Osawe, (N7 350)
- D. Faruk, (N450); Osawe, (N1 050)
Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20 000, N15 000 and N5 000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5 500.
Calculate the profit for Adamu?
- A. N583
- B. N1 000
- C. N1 167
- D. N1 750
Emeka Manufacturing Company (Extract) Manufacturing Account.
Direct material…………………N5 000
Direct labour…………………..N4 500
Direct expenses…………………N3 000
Factory overhead………………..N2 500
Selling distribution…………….N1 500
Calculating the production cost?
- A. N16 500
- B. N15 000
- C. N14 000
- D. N12 500
The understatement of closing value of work-in-process would have the effect of?
- A. understating cost of goods manufactured
- B. overstating prime cost of manufactured
- C. overstating cost of goods manufactured
- D. undersating prime cost of goods manufactured
Which of the following stock valuation methods is suitable under inflationary conditions?
- A. FIFO
- B. LIFO
- C. Simple average
- D. Weighted average
Given:
Capital at the beginning……………N20 000
Drawings………………………….N3 000
Capital…………………………..N30 000
New capital introduced……………..N8 000
What is the profit for the period?
- A. N4 000
- B. N5 000
- C. N6 000
- D. N8 000
Which of the following signs general warrant for the release of money from the consolidated revenue fund?
- A. Minister of Finance
- B. Chairman, Economic Advisory Committee
- C. Permanent secretary
- D. Minister of Economic Planning
The chief accounting officer of a local government is the?
- A. Chairman
- B. Treasurer
- C. Director of personnel
- D. Auditor
Which of the following is a signatory to federal government account?
- A. Auditor-General
- B. Governor of Central Bank
- C. Accountant-General
- D. Persident
If Aboki Holdings Limited issued 120, 000 ordinary share of N2.00 each at market value of 5.50k each, the share premium would?
- A. N500 000
- B. N450 000
- C. N550 000
- D. N420 000
Which of the following accounts for the highest revenue to Nigeria?
- A. Import duties
- B. Personal income tax
- C. Petroleum income tax
- D. Company tax
The fund in which all government receipt are paid is?
- A. consolidated revenue fund
- B. development fund
- C. trust fund
- D. contingency fund
The founders of a company are?
- A. promoters
- B. shareholders
- C. canvassers
- D. stakeholders
Goodwill is determined using?
- A. capital contribution
- B. number of partnerd admitted
- C. the business and customer relations
- D. number of active partners
Which of the following can be used on admission of a new partnership?
- A. Revaluation account
- B. Profit account
- C. Capital account
- D. Trading account
The interest on Keme’s drawings is calculated as?
- A. N200
- B. N150
- C. N300
- D. N100