Accounts, also called Principles of Accounts by some exam boards, focuses on the organized and thorough recording of a business's financial transactions.
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Question 1:
Purchasers - #44,880
Sales - #85,850
Trade creditors - #12,250
Trade debtors - #24,000
Accrued expenses - # 350
Prepaid expenses - # 700
Stock 1/1/2006 - #25,120
Stock 31/12/2006 - #27,840Calculate the acid test ration
Options:
A) 1:94:1
B) 1:96:1
C) 1:1:94
D) 1:1:96
Show Answer
The correct answer is B .
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Question 2: The tier of government that uses financial memorandum is the?
Options:
A) federal government
B) state government
C) local government
D) municipal government
Show Answer
The correct answer is C .
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Question 3:
Five hundred naira monthly is allowed on an imprest system.
The following transactions took place.
Period 1:
Cash advanced to petty cashier......₦500
Petty cashier paid out: stamp.......₦200
Newspaper...........................₦250
Period 2:
Cash to petty cashier...............₦450
Cashier paid for writing materials..₦350
How much should the petty cashier receive after period 2?
Options:
A) ₦150
B) ₦250
C) ₦350
D) ₦500
Show Answer
The correct answer is B .
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Question 4:
2/3 Purchases 900 books at #1,000 each
4/3 Purchases 590 books at ₦950 each
15/3 Sales 300 books at #900 eachDetermine the cost of goods sold using FIFO
Options:
A) #285,000
B) #300,000
C) #570,000
D) #600,000
Show Answer
The correct answer is B .
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Question 5: The Petroleum Technology Development Fund is under the
Options:
A) general fund
B) contingency fund
C) trust fund
D) capital fund
Show Answer
The correct answer is D .
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Question 6: When a business incurs labour cost in installing a fixed asset, the cost is treated as
Options:
A) additional cost to the asset
B) business wages and salaries
C) installation cost of the asset
D) business cost of the asset
Show Answer
The correct answer is A .
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Question 7: Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: ₦40,000, ₦50,000 and ₦70,000. The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for ₦50,000 cash. Wamo's equity in the resulting partnership is
Options:
A) ₦32,000
B) ₦40,000
C) ₦42,000
D) ₦50,000
Show Answer
The correct answer is D .
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Question 8:
A partnership deed is used to____________
Options:
A) Promote mutual understanding
B) Enhance mistrust
C) Encourage discrepancy
D) Control funds
Show Answer
The correct answer is A .
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Question 9: Goods worth N50 000 were sent at different times from head office to the branch during the year.
By the end of the period, only N40 000 worth of goods had arrived at the branch. Which of the following is correct about the treatment of this transaction?
Options:
A) Branch should debit goods received from head office with N50 000
B) Head office should debit goods sent to branch account with N10 000
C) Head office should debit goods sent to branch account with N50 000
D) Branch should debit goods received from head office with N10 000
Show Answer
The correct answer is B .
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Question 10:
| Receipts and Payments Account |
| | ₦ | | ₦ |
| Bal. b/f | 1,000 | Salaries | 5,000 |
| Donations | 5,000 | Secretariat expenses | 5,000 |
| Subscriptions | 7,000 | Dance expenses | 5,000 |
| Sales of refreshments | 11,000 | Refreshments | 15,000 |
| Entertainment | 21,000 | Bal. c/d | 15,000 |
| | 45,000 | | 45,000 |
Given:
Calculate the surplus income.
Options:
A) ₦45 000
B) ₦44 000
C) ₦30 000
D) ₦14 000
Show Answer
The correct answer is D .