Which of the following is the capital reserve of a company?
- A. Accumulated depreciation
- B. Retained profit
- C. Share premium
- D. Loss on forfeited shares
The documents that provide instant information to firms on their tranactions with banks are
- A. bank statement and debit note
- B. cheque book and cashbook
- C. cheque stub and deposit slip
- D. payslip and credit invoice
An item in the balance sheet of a limited liability company is
- A. accrued expenses
- B. lighting and heating
- C. salaries and wages
- D. general expenses
The instrument used in analysis and interpretation of financial statement is the
- A. accounting ratios
- B. income and expenditure extract
- C. balance sheet extract
- D. found accounting
The ratio that gives the indication of the efficiency of a firm’s sales with respect to cost of goods sold is a
- A. return on capital employed
- B. gross profit margin
- C. net profit margin
- D. return on equity
One of the objectives of accounting is that it can be used for
- A. business decision making
- B. due process in business
- C. motivating employees
- D. determining the work force
Departments K Y
Opening 2,500 800
Purchases 120,000 100,000
Sales 180,000 200,000
Salary 8,000 30,000
Closing stock 3,000 1,500
Rate expenses of 1,500 are apportioned in the ratio 1:2
The gross profit for K is
- A. # 60,700
- B. #23,500
- C. #60,500
- D. #82,500
The major advantage of the journal proper is that it
- A. helps in the preparation of the balance sheet
- B. prevents fraud and theft of item of the business
- C. serves as a book of instruction to the bookkeeper
- D. help the banking industry to be efficient
The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm’s capital?
- A. #184, 000
- B. #196,500
- C. #212,000
- D. #168,500
Balance as per cashbook 2, 970
Bank Charges 220
Unpresented cheques 3, 950
Uncredited cheques 4, 178
Direct debit by bank 1, 0000
Determine the balance as per bank statement.
- A. # 1,978
- B. # 1962
- C. # 1,522
- D. # 2,522
The Current account above had some errors in the arrangement of the accounts for Musa, Kalu and Lawal]
The correct closing balance for lawal’s current account is
- A. N21 100 debit
- B. N14 740 debit
- C. N14 740 credit
- D. N540 credit
The Current account above had some errors in the arrangement of the accounts for Musa, Kalu and Lawal
The Correct closing balance for Musa’s current account is
- A. N36 000 Credit
- B. N16 600 credit
- C. N16 600 debit
- D. N1 800 credit
What is the balance carried down?
- A. N11,680
- B. N11,930
- C. N12,330
- D. N13,430
What is the total income for the period?
- A. N13,890
- B. N13,500
- C. N10,500
- D. N9,500
Determine the closing stock.
- A. N30,000
- B. N40,000
- C. N50,000
- D. N60,000
The formula for calculating depreciation using straight line method is
- A. \( \frac{\text{Scrape Value} + \text{Sales}}{Useful life} \)
- B. \( \frac{\text{Cost } - \text{Scrape Value}}{Useful life} \)
- C. \( \frac{\text{Sales } - \text{Scrape Value}}{Useful life} \)
- D. \( \frac{\text{Purchases } + \text{Sales }}{Useful life} \)
Determine the bank balance
- A. N 6,950 credit
- B. N6,950 debit
- C. N6,000 credit
- D. N6,000 debit
Use the information above to answer the question
Calculate the net profit.
- A. N35,000
- B. N40,000
- C. N105,000
- D. N115,000
Use the information above to answer the question
Find the gross profit.
- A. N370,000
- B. N230,000
- C. N150,000
- D. N140,000
The 5% discount shown above indicates
- A. trade discount
- B. cash discount
- C. discount allowed
- D. discount received
Given:
From the above information, the gross profit from department X is
- A. N3,800
- B. N2,300
- C. N2,200
- D. N2,000