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 1241:
Use the information below to answer questions
Adex Ltd. issues stock to its retail branches at cost price. The following particulars relate to Ede branch.
Stock at branch 1st January at cost............N400
Goods sent to branch at cost...................N8000
Returns to head ...............................N340
Cash sales ....................................N9160
Stock at branch 31st December at cost..........N720
What is the gross profit carried to the profit and loss account?
Options:
A) ₦1820
B) ₦1640
C) ₦1530
D) ₦1870
Show Answer
The correct answer is A .
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Question 1242:
Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week for 50 weeks a year. Factory overhead costs of ₦60,000 is distributed on the basis of direct labour hours.
Compute the overhead rate?
Options:
A) ₦12 per hour
B) ₦16 per hour
C) ₦10 per hour
D) ₦15 per hour
Show Answer
The correct answer is C .
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Question 1243: The main difference between the ordinary and preference shareholders is that?
Options:
A) the former receive dividends while the latter do not
B) the latter are not members of the company while the former are
C) in the case of winding up, the former are paid first before the latter
D) the former have voting rights while the latter do not
Show Answer
The correct answer is D .
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Question 1244: ₦800,000 worth of ordinary shares of 50k were issued at ₦1 each, payable in full on application. The entry in the cash book would be to
Options:
A) credit ₦1,600,000
B) debit ₦1,600,000
C) credit ₦1,600,000
D) debit ₦800,000
Show Answer
The correct answer is D .
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Question 1245:
The document issued by a revenue collector as evidence of payment to a government ministry is a
Options:
A) receipt voucher card
B) stores receipt voucher
C) treasury receipt
D) payment voucher
Show Answer
The correct answer is A .
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Question 1246: Using LIFO method of stock valuation, analyze the issue quantities and their prices
Options:
A) 260 units at ₦1.50
B) 700 units at ₦1.50
C) 200 units at ₦1.50 and 500 units at ₦1.00
D) 350 units at ₦1.50 and 350 units at ₦1.00
Show Answer
The correct answer is A .
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Question 1247:
The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of
Options:
A) capital reserve
B) net loss
C) revenue reserve
D) net income
Show Answer
The correct answer is A .
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Question 1248:
The term "accounting period" is used to refer to the
Options:
A) time span, usually one year covered by the financial statement
B) period within which debtors are expected to settle accounts
C) time, span during which taxes are paid to the inland revenue board
D) budget period, usually one year relied on by the accountant
Show Answer
The correct answer is A .
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Question 1249:
A pottery company had sales of ₦176,000 during the current period and a gross profit rate of 40%.
The company's cost of merchandize available for sale during the period was ₦128,000. The company's ending inventory is?
Options:
A) ₦22,400
B) ₦32,000
C) ₦51,200
D) ₦76,800
Show Answer
The correct answer is A .
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Question 1250: The tier of government that uses financial memorandum
Options:
A) Federal government
B) state government
C) local government
D) municipal government
Show Answer
The correct answer is C .