Debts that a firm is unable to recover are debited to bad debts account and credited to
- A. Suppliers account
- B. Sales account
- C. Customers account
- D. Cash account
A loan to a company under the company’s seal is
- A. Fixed deposit
- B. Mortgage
- C. Bond
- D. Debenture
Assets which are readily convertible into cash are termed as
- A. Liquid assets
- B. Fixed assets
- C. Intangible assets
- D. Tangible assets
In the purchase of a business, a buyer has paid more than the value of the net assets of the business. The excess payment is referred to as
- A. Bonus
- B. Goodwill
- C. Net profit
- D. Premium
Which of the following expenses is apportioned between departments based on sales?
- A. Discount received
- B. Electricity
- C. Carriage inwards
- D. Carriage outwards
The total of the discounts received column in the three column cash book is?
- A. Debited to discounts received account
- B. Credited to discounts received account
- C. Debited to discounts allowed account
- D. Credited to discount allowed account
The transfer of money from one sub-head to another in the public sector is
- A. Budgeting
- B. Allocation
- C. Virement
- D. Vote
Which of the following is a source of local government revenue?
- A. Excise duties
- B. Market dues
- C. Import duties
- D. Loans and grants
The cost of goods returned by branch to head office is debited
- A. Branch stock adjustment account
- B. Goods sent to branch account
- C. Branch stock account
- D. Branch profit and loss account
The branch current account records
- A. Head office transactions with the branch
- B. Branch transactions with the head office
- C. Goods sent to branch at selling price
- D. Cash received from branch as sales
The entries for credit sales at branch where the head office keeps all records are:Debit
- A. Branch stock account; credit branch debtors account
- B. Branch debtors account; credit branch stock account
- C. Branch debtors account; credit branch adjustment account
- D. Branch adjustment account; credit branch debtors account
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The authorized share capital is
- A. N300,000
- B. N250,000
- C. N200,000
- D. N150,000
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The unsubscribed share capital is
- A. N300,000
- B. N250,000
- C. N200,000
- D. N150,000
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The subscribed share capital is
- A. N300,000
- B. N250,000
- C. N200,000
- D. N150,000
When allotments have been fully paid, subscribers are referred to as
- A. Allotters
- B. Applicants
- C. Non-members
- D. Shareholders
In preparing partnership accounts, interest on drawings is debited to current accounts and credited to
- A. Capital account
- B. Appropriation account
- C. Drawings account
- D. Profit and loss account
In the absence of a partnership agreement, additional capital contributions by partners attract interest of
- A. 5%
- B. 10%
- C. 12%
- D. 15%
Where fixed capitals are maintained in a partnership, share profits are
- A. Credited to partners capital accounts
- B. Credited to partners current accounts
- C. Debited to partners capital accounts
- D. Debited to partners current accounts
The concept which states that the affairs of a business is to be treated as being separate from the private activities of the owner is
- A. Realization concept
- B. Business entity concept
- C. Cost concept
- D. Dual aspect concept
Purchases of fixtures and fittings by a club is recorded in the
- A. Receipts and payments account only
- B. Income and expenditure only
- C. Receipts and payments account and balance sheet
- D. Income and expenditure account and balance sheet
Which of the following is a credit item in an income and expenditure account?
- A. Electricity
- B. Donations
- C. Stationery
- D. Bar suppliers