If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to?
- A. have a higher cost of goods sold
- B. have a higher gross profit
- C. pay higher gross profit
- D. have a higher value for closing stock
If an organization maintains a periodic stock system, the stock quantities are?
- A. updated at the end of the accounting year
- B. not considered in the updating process
- C. updated continuously
- D. updated at the beginning of the accounting year
Use the information below to answer questions
Sundry debtor………………N20,000
Provision for bad debts……..N500
Provision for bad debt at 4% of sundry debtors.
Calculate the provision to be taken to the balance sheet?
- A. N780
- B. N800
- C. 1200
- D. N200
Use the information below to answer questions
Sundry debtor………………N20,000
Provision for bad debts……..N500
Provision for bad debt at 4% of sundry debtors.
Determine the provision for bad debts to profit and loss account?
- A. N500
- B. N820
- C. N1300
- D. N300
Benefit enjoyed for which payments have not been made are?
- A. accruals
- B. prepayments
- C. acquisitions
- D. provisions
Use the information below to answer question
Sales………………………………N10,900
Stock 1/1…………………………..N1, 000
Stock 31/12…………………………N2, 000
Purchases…………………………..N4, 000
Returns outwards…………………….N800
Returns inwards……………………..N600
Carriage outwards……………………N300
Carriage inwards…………………….N200
The cost of goods available for sale is?
- A. N4 600
- B. N5 000
- C. N6 400
- D. N4 400
Use the information below to answer question
Sales………………………………N10,900
Stock 1/1…………………………..N1, 000
Stock 31/12…………………………N2, 000
Purchases…………………………..N4, 000
Returns outwards…………………….N800
Returns inwards……………………..N600
Carriage outwards……………………N300
Carriage inwards…………………….N200
Find the gross profit.
- A. N7 800
- B. N7 900
- C. N9700
- D. 5700
The course of discrepancies between the bank statement and the cash book that overstates the cash book is the?
- A. dividend received
- B. uncredited expenses
- C. uncredited cheques
- D. interest on lodgement
The bank charges levied on a current account holder is the charge on?
- A. transaction
- B. turnover
- C. transfer
- D. cash received
A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the?
- A. commission paid
- B. interest received
- C. direct payment
- D. direct withdrawal
The source documents include?
- A. cash book
- B. petty cash book
- C. general ledger
- D. credit notes
Th major feature of an invoice is that, it?
- A. passes information through the sales day book
- B. has cash and bank column
- C. specifies the particular of goods bought
- D. indicates only the cash sales
The account which refers to the tangible assets of a company that is of permanent nature is the?
- A. personal account
- B. real account
- C. nominal account
- D. cash account
If stationery bought for N200 has been entered as N2000. To correct this error?
- A. debit stationery with N2,200
- B. credit stationery with N1,800
- C. debit stationery with N1,800
- D. credit stationery with N2,200
If salary account is debited instead of stationary account, the error committed is that of?
- A. commission
- B. omission
- C. principle
- D. compensation
Ledger account is mainly classified into?
- A. nominal, real and personal accounts
- B. fixed and current accounts
- C. management, financial and public sector accounting
- D. bank and cash accounts
The major function of accounting bodies in Nigeria is to?
- A. provide proper financial management of businesses
- B. provide good remuneration to the members
- C. promote the ethics of the profession
- D. show the dynamic nature of the profession
One of the reasons for the existence of the public sector is to?
- A. Take adequate care of the needy
- B. supplement the commercial sector
- C. provide cheap services to all citizens
- D. correct perceived inequalities
Which of the following is credited to the consolidated revenue fund?
- A. Recurrent expenditure
- B. Capital expenditure
- C. Transfer to revenue fund
- D. International revenue
Replacement and renewal of fixed assets are?
- A. revenue receipt
- B. capital receipt
- C. capital expenditure
- D. revenue expenditure
Expenditure incurred on consumables and goods for resale is?
- A. revenue expenditure
- B. capital expenditure
- C. sunk cost
- D. miscellanous expenses