The Act establishing the institute of Chartered Accountants of Nigeria (ICAN) came into force on?
- A. Ist September, 1960
- B. Ist October, 1960
- C. Ist October,1963
- D. Ist , September,1965
The total of the creditors at the beginning of the year was N4,600 and at the end of the year N5,250. During the year, N26,500 was paid to suppliers and N130 was received in discounts from these suppliers. The purchases for the year would be
- A. N26,630
- B. N27,038
- C. N27,150
- D. N27,280
which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?
- A. decrease in the closing balance of sales ledger control accout
- B. increase in net profit
- C. increase in the value of sales
- D. decrease in the value of purchases in the trading account
In the absence of a sales day book or sales account the credit for sales can be computed from
- A. creditors control account
- B. debtors control account
- C. opening figures of the balance sheet
- D. closing figures of the balance sheet
The principle use of control accounts is to
- A. localize error within the ledger
- B. prevent fraud
- C. increase sales
- D. record assets and liabilities
The process of allocating the cost of an intangible assets over its useful life is known as
- A. depreciation
- B. extraction
- C. depletion
- D. amortization
The records of wages due but not yet paid is an example of an adjustment for
- A. apportionment of revenue between two periods
- B. recognizing accrued expenses
- C. recognizing unaccounted revenue
- D. recognizing prepaid expenses
Given: capital N13,000; office machinery, N9,000; creditors N900, stock of goods N1,550; debtors, N275; cash at bank, N5,075 and loan from Jumbo, N2,000. What is the balance sheet total?
- A. N19,500
- B. N18,500
- C. N17,900
- D. N15,900
Given:
Net profit———————–N25,000
Cost of sale———————N25,000
Sales—————————-N85,000
Determine the total expenses.
- A. N45,000
- B. N35,000
- C. N25,000
- D. N15,000
At the end of a financial period, the trading profit and loss account of a company showed a profit of N120,000. It was however discovered that revenue of N12,000 was recorded as expenses while expenses of N4,000 had been recorded as revenue. What should be the correct profit for the period?
- A. N104,000
- B. N128,000
- C. N136,000
- D. N144,000
The receipt of cash from a customer who bought goods with N800 list price, 25% trade discount and 2/10, n/30 terms would, if paid within the discount period, amount to
- A. N576
- B. N588
- C. N600
- D. N624
On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?
- A. debit rent account and credited adjustment account
- B. debit prepayment account and credit rent account
- C. debit rent account and credit prepayment account
- D. debit adjustment account and credit prepayment account
On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account.
At 31/12/93, what portion of that amount was prepaid?
- A. N14,583
- B. N25,000
- C. N35,417
- D. N37,415
An examination of the cash book on 3rd August 1993 showed a different balance from the bank statement of 31st July, 1993 which read N722. Uncredited cheques were Bimpe N40; Wale N60 while unpresented cheques were; Usman N20, Kalu N32 and Musa N70. What is the cash book balance after the reconciliation?
- A. N700
- B. N770
- C. N800
- D. N822
When the sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as
- A. uncredited cheques
- B. dishonoured cheques
- C. direct remittance to the bank
- D. unpresented cheques
Which of the following demonstrates the imprest system?
- A. Float → expenses paid → cash in bank → float
- B. Float → cash from bank → expenses paid → float
- C. Float → expenses paid→ cash from bank → float
- D. Float → cash in bank → expenses paid → float
Erroneous rearrangement of financial figures such as writing N624 as N 264 is called
- A. transposition
- B. principle
- C. commission
- D. omission
The term ‘posting’ in Accounting refers to
- A. recording entries in the journal
- B. transferring the balance in the ledger to the trial balance
- C. tracing amounts from the journal to the ledger to find errors
- D. transferring entries to the ledger from the journal
Books of original entry are used for
- A. recording business transactions
- B. the adjustment of accounts
- C. reminding the book keeping to post transactions in the ledger
- D. informing the bookkeeper about the state of affairs
The effect of the payment of liability is that it
- A. increase both assets and liabilities
- B. increase assets and decrease liabilities
- C. decrease assets and increase liabilities
- D. decrease both assets and liabilities
The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as
- A. credit note
- B. debit note
- C. invoice
- D. voucher