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A member of a club paid N 1,000 as his subscription for 1993 and N 1,200 as subscription for 1992. If the financial year of the society ended on 31st December, 1993, the N 1,200 subscription will be treated in the balance sheet as  _______

A. current  asset     B. current liability     C. capital     D. profit.


At the end of a financial period, the trading profit and loss account of a company showed a profit of N 120,000. It was however discovered that revenue of N 12,000 was recorded as expenses while expenses of N 4,000 had been recorded as revenue. What should be the correct profit for the period?

A. N 104,000      B. N 128,000      C. N 136,000     D. N 144,000


The need for changes in accounting theory in Nigeria was influenced by the _____

A. dynamics of commercialisation and privatisation policies
B. growth in size of business units
C. introduction of the structural adjustment programme
D. inconvertibility of the nation’s currency.


Money not required to meet chargeable expenditure in any fiscal year under cash account should be _____

A. surrendered to the consolidated revenue fund
B. carried forward to the next financial year
C. reserved to meet any deficit or contingencies
D. returned to the taxpayer.


Which of the following are sources of revenue to state governments in Nigeria?

I. Statutory allocation.
II. Fines from customary courts.
III. Petroleum tax.
IV Income tax.

A. I and II only.    B. II and III only.    C. I and IV only.    D. III and IV only.


The following is a draft balance sheet as at 31\12\92

Accumulated
  Cost Depreciation Net
  N N N
Fixed Assets (Tan) 200,000 100,000 100,000
Current Assets      
Stock in trade   10,000  
Trade debtors   4,500  
Cash at bank   22,800  
Cash in hand   9,700  
Trade creditors   ?  
Capital   ?  

Trade creditor’s account was maintained at 25% to the capital

What was in the capital account as at 31/12/92?

A. N 76000      B. N 83,000       C. N 17,600       D. N 117,650


Wazobia Enterprises Balance Sheet as at 1/1/95
  N   N
Liabilities Assets
Capital 40,000 Furnishings 10,000
    Ceiling fan 1,500
    Cash at Hand 28,500
  40,000   40,000

In 31/1/95, the following information was ascertained

(i) rent for shop N 12,000 paid for the year
(ii) total purchases N 15,000
(iii) total sales N 8,200
(iv) stock of goods left N 10,000
(v) paid sales boy N 500

17. What is the new balance sheet total as at 31/1/1 95 ?

A. N 40,000    B. N 41,500   C. N 41,700   D. N 48,500

 


I. A retailer, when fixing his selling price, adds one-quarter to the cost of the article.
II. The expenses of the retailer’s 10% of his-sales.
III. The total sales is N 23,000.
IV. He turned over his stock five times ¡n the year.

The net profit for the year is _____

A. N 5,750    B. N 5,650    C. N 3,200    D. N 2,300.


Erroneous real arrangement of financial figures such as writing N 624 as N 264 is called ______

A. transposition    B. principle    C. commission        D. omission.


The main features of single entry system are that ______

A. books of accounts are not maintained and business relies only on bank statement.
B. the journal records are absent and only the main ledger is kept
C. there are complete classifications and recording procedures.
D. only credit sales transactions and credit purchases are recorded.


The conventional sources of public revenue include _____

A. loan, taxation, foreign reserves and dividends
B. interest, royalties, taxation and loans
C. crude oil, interest, posted price and taxation
D. taxation, deficit budgeting, royalties and loans.


Mini Enterprises Sales Ledger as at 31/12/94 reads

  N
Balance b/f 12,750
Total credit sales 28,185
Payments by debtors 12,112
Discount allowed 638
Sales returns 1,500

Prepare the sales ledger control account and determine the balance due from debtors

A. N 44,935   B. N 27,961    C. N 26,685    D. N 1,185


On 1st January, 1993, Lobo Company purchased equipment for N 18,000. It uses straight-line depreciation and a N 2,000 salvage value. On 31st December, 1996, it sells the equipment for N 8,000. In recording this sale, it should reflect ______

A. N 10,000 loss    B. N 2,000 loss    C. N 6,000 gain    D. N 8,000 gain.


Sobande Incorporation acquired a machine that involved the following expenditures and related factors.

  N
Gross invoice price 15,000
Sales tax 900
Purchases discount taken 300
Freight 750
Assembly of machine 500
Installation of machine 800
Assorted spare parts for future use 1,200
Turning and adjusting machine 700

What is the initial accounting cost of the machine?

A. N 19,550    B. N 18,950    C. N 18,350    D. N 17,500


Yakubu (Nigeria) Limited.(Extract Balance sheet as at 31st December, 1993 Authorized issued)

  N N N
Ordinary shares 100,000 80,000  
10% preference shares 30,000 20,000  
Shares premium   20,000  
Profit and loss A/C   13,000  
Trade creditors   30,000  
Accruals   5,000  
Stock     10,000
Debtors     40,000
Bank     25,000

If 10% dividend is approved, what is the dividend payable to ordinary shareholders?

A. N 13,000      B. N 11,300       C. N 10,000       D. N 8,000

 


One major advantage of a ledger is that it _______

A. is a book of original entry
B. is only accessible to shareholders during distribution
C. removes the need for preparing a balance sheet after each transaction
D. can be used by any type of business.


The end result of governmental accounting procedure is to ______

A. Keep proper records of government expenditures.
B. give financial information to the public and investors.
C. produce timely and accurate financial reports for legislators and the public.
D. give information on the performance of public enterprises.


Which of the following statements is correct about the head office current account and the branch current account?

A. Both always have debit balances.
B. Both always have credit balances.
C. The head office current account has a credit balance while the branch current account has a debit balance.
D. The head office current account has a debit balance while branch current account has a credit balance.


To compute gearing ratio, divide ______

A. profit by capital employed
B. current assets by current liability
C. profit by total assets
D. long term debt by equity capital.


The ordinary shareholders enjoy the following rights except the right to _____

A. vote at annual general meetings
B. elects the board of Directors
C. participates in additional issue of shares.
D. receives dividends at a predetermined rate.


The difference between a trading account and a manufacturing account is that while manufacturing account _______

A. has no particular period, the trading account has
B. does not consider cost of goods involved, the trading account does
C. is concerned with the cost of production, trading account is not.
D. is not concerned with stock of raw materials, the trading account is.


If a monthly insurance premium is remitted to a company by the state government, the initial deductions from employees are recorded in _____

A. the General fund
B. Agency fund
C. Special fund
D. General long-term fund


The Asa branch of Emene Company Ltd. made a sales of N 549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies what should be the net profit of the branch for the period?

A. N 6,500       B. N 64,600       C. N 85,380       D. N 514,600


  N
Capital: opening balance 307,000
Closing balance 342,000
Net profit for the period 121,600
Opening stock 98,800
Purchases 706,000
Carriage inwards 17,500
Cost of goods sold 740,700
Total selling, general and administration expenses 526,000
Discount received 9,650

What is the closing stock tar the period?

A. N 69,300    B. N 81,300    C. N 81,600    D. N 106,400


Which of the following accounts is kept by local governments in Nigeria?

A. Balance sheet
B. Advances account
C. Debtors account
D. Profit and loss account.


Yakubu (Nigeria) Limited.(Extract Balance sheet as at 31st December, 1993 Authorized issued)

  N N N
Ordinary shares 100,000 80,000  
10% preference shares 30,000 20,000  
Shares premium   20,000  
Profit and loss A/C   13,000  
Trade creditors   30,000  
Accruals   5,000  
Stock     10,000
Debtors     40,000
Bank     25,000

Equity shareholders’ fund is _______

A. N 133,000       B. N 120,000       C. N 113,000       D. N 100,000


The initial imprest as at July 1st was N 500. Petty cash vouchers with the custodian by July 15th added up to N 374. An IOU slip received from a co-worker was N 65 and there was a shortage of N 5 cash. The co-worker made refund on July 18th just before the imprest was replenished.

What was the actual cash in the teller as at 15th July?

A. N 106   B. N 101   C. N 70    D. N 36


The limitation of the receipts arid payments account arise mainly because of the reliance on _______

A. cash movement as evidence of transaction
B. the accounting officer to report
C. the capital account of the organization
D. the transaction papers as evidence of transaction.


The following represents extracts from the trading account of a retail outlet for a given month:

Opening stock - N 2,400
Closing stock - N 6,400
Other expenses - N 2,000
Sales - N 11,000
Profit - N 900

What is the purchase figure for the month?

A. N 13,000       B. N 12,100       C. N 12,000       D. N 11,200


The purchase of two generators by Hassan Electronics Enterprises should be recorded as _______

A. an acquisition of fixed assets
B. an expenses in its general office expense account
C. an acquisition of stock
D. a part of capital in the capital account. .


If goods are invoiced to the branch at cost and the invoice per value is N 2,000 with 5% discount rate cash remitted to the head office at cost and the invoice per value ______

A. N 2,100    B. N 2,000    C. N 1,900    D. N 100


The trading account ¡s to a sole trader what income and expenditure account is to a _______

A. partnership
B. public limited organization
C. manufacturing organization
D. non-profit making organization.


Receipts and payments account of a non-profit making organization is principally a summary of the ______

A. bank entries    B. cash book entries     C. expenditure     D. balance sheet entries.


Public sector accounting ¡s based on ______

A. cash    B. accrual     C. budgets     D. consolidated fund


A book-keeping error occurs when there is _____

A. deliberate manipulation of records
B. unintentional correct posting in the ledger
C. intentional failure to record transactions completely
D. incorrect records and oversights that are not intended.


If a sole proprietorship is purchased for cash, then ______

A. the purchaser debits his business purchase account with the consideration he pays
B. all assets and liabilities must be bought
C. goodwill results where value of liabilities taken is higher than the value of assets
D. the vendor debits his business purchase account with the consideration receives.


Capital and revenue expenditure of government are usually accounted for under funds which include ______

A. personal advances, technical and public funds
B. technical special trust and commercial funds.
C. personal advances treasury clearance and special trust funds.
D. commercial loans and treasury clearance funds.


The conversion of a partnership business into a limited liability company affords the _____

A. general partners the chance of enjoying the limited liability protection
B. limited liability partners the chance of enjoying the limited liability protection
C. creditors the chance of enjoying the limited liability protection
D. debtors the chance of enjoying the limited liability protection.


Given: Capital, N 13,000; Office machinery, N 9,000; Creditors, N 900; Stock of goods, N 1,550 Debtors, N 275; Cash at bank, N 5,075 and loan from Jumbo, N 2,000.  What is the balance sheet total?

A. N 19,500    B. N 18,500    C. N 17,900     D. N 15,900


Goodwill can be valued in partnership when _____

A. partners make profits
B. large losses are made
C. a partner retires
D. a new branch is opened.


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