A real account is the account of
- A. expenses or losses
- B. gains or income
- C. physical tangible items
- D. fictitious items
- E. current liabilities
A ledger is a
- A. book of accounts
- B. summary of entries
- C. book of original entry
- D. double entry posting
- E. record of credit transactions
Use the following information to answer this question
A company charges out goods to a branch at cost plus 25 percent. It invoiced N12,00 worth of goods
The double entry required for the mark-up is debit Branch
- A. Sales Account, credit Branch Adjustment Account
- B. Adjustment Accoutnt, credit Branch Stock Account
- C. Stock Account, credit Branch Adjustment Account
- D. Adjustment Account, credit Branch Profit and Loss Account
- E. Profit and Lost Account, credit Branch Stock Account
Use the following information to answer this question
A company charges out goods to a branch at cost plus 25 percent. It invoiced N12,00 worth of goods
The mark-up is
- A. N15,000
- B. N9,000
- C. N4,000
- D. N3,000
- E. N2,000
Which of the following is not a source document for recording sales?
- A. Debit note
- B. Credit note
- C. Receipt
- D. Sales journal
- E. Invoice
A financial plan of action expressed in monetary terms is known as
- A. imprest
- B. consolidated fund
- C. warrant
- D. budget
- E. development fund
Where a business is purchased, the full amount of the purchase consideration is credited to
- A. Purchase of Business Account
- B. Creditor's Account
- C. Vendor's Account
- D. Purchaser's Account
- E. Debtor's Account
Which of the following is an advantage of the impurest system?
- A. making hig profits in the business
- B. Rewarding the imprest holder
- C. Easy prearation of the final accounts
- D. Meeting small items of expenditure
- E. Enabling the Trial Balance to agree
In Manufacturing Account, prime cost plus factory overhead is known as
- A. conversion cost
- B. cost of raw materials consumed
- C. total cost
- D. production cost
- E. cost of work in progress
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
The profit on sale was
- A. N8.00
- B. N7,000
- C. N6,000
- D. N5,000
- E. N1,000
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
Accumulated depreciation at the time of sale was
- A. N16,000
- B. N14,000
- C. N12,000
- D. N8,000
- E. N6,000
Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
The net book value at the time of sale was
- A. N16,000
- B. N14,000
- C. N12,000
- D. N8,000
- E. N6,000
Which of the following is a normal account?
- A. Machinery
- B. Debtors
- C. Creditors
- D. Salaries
- E. Goodwill
In a partnership goodwill is recognized when
- A. a new partner is admitted
- B. a partner is dormant
- C. the business is making huge profit
- D. the business has good customer relations
- E. it is a limited partnership
An example of appropriation of profit in a company is
- A. salaries
- B. rent income
- C. debenture interest
- D. director's remuneration
- E. dividend
A Receipt and Payments Account reveals
- A. net profit
- B. surplus
- C. cash in hand
- D. gross profit
- E. net loss
Which of the following is not a capital expenditure to a local government?
- A. beds
- B. theatre equipment
- C. incubators
- D. x-ray machine
- E. drugs
A sales day book is used to record
- A. cash sales of stock
- B. credit sales of stock
- C. cash and credit sales of stock
- D. cash sales of fixed assets
- E. credit sales of fixed assets
Subscription in advance is treated in the Balance sheet of non-profit making organizations as
- A. current asset
- B. fixed asset
- C. current liability
- D. accumulated fund
- E. goodwill
To correct an error, the purchases account was debited while Suspense account was credited. Which of the following was the cause of the error?
- A. undercasting of purchase
- B. overcasting of purchases
- C. original entry
- D. transportation of returns outwards
- E. omission of creditor's balance
A suspense account is used to
- A. agree the trial balance
- B. recoord sales
- C. record purchases
- D. correct errors
- E. prepare the balance sheet