Stationary which will be used over a long period of time is usually recorded as an expense instead of an asset.
This concept is called?
- A. entity
- B. materiality
- C. realization
- D. accrual
which of the following is source of document for the preparation of debtors’ ledger account?
- A. Debit note
- B. General journal
- C. Purchases invoice
- D. Sales invoice
A major factor that enhanced the early development of accounting is the?
- A. Industrial Revolution
- B. growing of trade and commerce
- C. development of arithmetic
- D. invention of writing
The use of a three-column cash book is determine by?
- A. cash discounts
- B. trade discounts
- C. cash transactions
- D. bank transactions
A private company is different from a public company because?
- A. it does not restrict the right to transferits shares
- B. it cannot invite members of the public to subscribe for its shares
- C. its shares are owned by one person
- D. it can only offer its shares to members of the publicfor subscription
Use the information below to answer questions Turnover………………………N120 000 Net profit before tax…………..N40 000 Net profit b/f…………………N68 000 Proposed dividends: Ordinary shares………………..N8 000 Preference shares………………N6 000 Corporate tax is 30%……………N10 000
What is the tax charged to profit and loss account?
- A. N 14 000
- B. N 60 000
- C. N 34 000
- D. N 20 000
Accrual accounting differs from cash accounting because it recognizes?
- A. cash and creditors
- B. debtors and creditors
- C. cash and debitors
- D. prepayment and cash
Use the information below to answer questions
Turnover………………………N120 000
Net profit before tax…………..N40 000
Net profit b/f…………………N68 000
Proposed dividends:
Ordinary shares………………..N8 000
Preference shares………………N6 000
Corporate tax is 30%……………N10 000
The undistributed profit carried forward is?
- A. N 68 000
- B. N 20 000
- C. N 74 000
- D. N 34 000
Gross earnings……………………N950 000
Current liabilities……………….N100 000
Operating expenses………………..N350 000
10% debentures……………………N400 000
Shareholder’s fund………………..N1300 000
Corporate tax is 30%
From the data above calculate the returns on equity?
- A. 33%
- B. 35%
- C. 20%
- D. 30%
After receiving the financial statement the Auditor General of the Federation must submit a report to the National Assembly within?
- A. 60 days
- B. 30 days
- C. 120 days
- D. 90 days
Tunde purchased goods from Femi by cash worth N1000 with 10% cash discount. Tunde’s ledger control account is to be?
- A. deited by N100
- B. credited by N100
- C. credited by N1000
- D. deited by N1000
The difference in the sales ledger control account is transferred to the?
- A. profit and loss account
- B. sales account
- C. balance sheet
- D. trading account
Use the information below to answer question .
Capital…………………N?
Profit and loss………….N3500
Current assets…………..N?
Current liabilities………N2000
fixed assets…………….N11000
Determine the current assets?
- A. N7 000
- B. N6 000
- C. N8 000
- D. N9 000
Use the information below to answer question .
Capital…………………N?
Profit and loss………….N3500
Current assets…………..N?
Current liabilities………N2000
fixed assets…………….N11000
The company maintains a current ratio of 3:1.
The capital balance is?
- A. N95 00
- B. N12 500
- C. 11 500
- D. 10 00
A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the?
- A. weighted average method
- B. simple average method
- C. FIFO method
- D. LIFO method
The objective of a trading account is to establish the?
- A. cost of goods sold
- B. gross profit
- C. manufacturing profit
- D. net profit
The objective of the purchase ledger control account is to established the?
- A. credit purchases
- B. net profit
- C. total purchases
- D. gross profit
Use the information below to answer questions .
On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.
the rate of the yearly depreciation expense would be?
- A. 50%
- B. 40%
- C. 30%
- D. 20%
Use the information below to answer questions .
On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.
Calculate the yearly depreciation expense using the straight line method.
- A. N11 000
- B. N11 200
- C. N11 400
- D. N11 300
Fatima withdraws goods from the business for personal use. the accounting treatment is to debit?
- A. stock account and credit profit and loss account
- B. drawings account and credit stock account
- C. profit and loss account and credit drawing account
- D. stock account and credit drawings account
The tier of government that uses financial memorandum is the?
- A. federal government
- B. state government
- C. local government
- D. municipal government