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 121: The term fiscal compliance means?
Options:
A) al financial and related laws and regulations are adhered to
B) only the budget fir the current period is complied with and no deficits allowed
C) all physical assets requirements have been met
D) fiscal planning is necessary for proper accountabilit in the public sector
Show Answer
The correct answer is A .
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Question 122:
| Uju Nig. Ltd. Balance Sheet (Extract) |
| | ₦ | | ₦ |
| Capital | 200,000 | Land and building | 250,000 |
| Net profit | 50,000 | Stock | 20,000 |
| 5% debenture | 100,000 | Debtors | 50,000 |
| Creditors | 80,000 | Bank | 10,000 |
| | 430,000 | | 430,000 |
The debit ratio is approximately
Options:
A) 43%
B) 42%
C) 41%
D) 23%
Show Answer
The correct answer is D .
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Question 123:
Given:
General expenses account.
Paid by cheque..................₦671
Paid by cash....................₦70
Accrued b/f.....................₦65
Accrued c/f.....................₦115Determine how much to be charged to profit and loss account?
Options:
A) ₦606
B) ₦786
C) ₦791
D) ₦856
Show Answer
The correct answer is C .
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Question 124: An income and expenditure account is a summary of
Options:
A) all income and expenditure during a period
B) revenue income and expenditure during a period
C) receipts and payments during a period
D) the trading income a period
Show Answer
The correct answer is B .
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Question 125: A total of 400,000 shares of ₦1 each are to be issued by Sariki company Ltd at a price of ₦1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?
Options:
A) ₦1,000
B) ₦1,200
C) ₦4,800
D) ₦6,000
Show Answer
The correct answer is A .
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Question 126: To record the transfer of stock from one department to another, the correct entry would be to debit?
Options:
A) goods outwards and credit goods inwards
B) merchandise account and credit department stock account
C) department transfering and credit department receivving
D) department receiving and credit department transfering
Show Answer
The correct answer is D .
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Question 127: Income and expenditure account is more informative than receipts and payments account because it discloses?
Options:
A) cash
B) cheques
C) debtors
D) stocks
Show Answer
The correct answer is C .
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Question 128:
A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.
The yearly depreciation using the straight line method would be
Options:
A) N8,800
B) N6,500
C) N5,200
D) N4,400
Show Answer
The correct answer is C .
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Question 129: An advantage of the use of the voucher system is that it?
Options:
A) reduces the number of cheques that will be writen during any given period
B) provides a highly flexible system for handling unusual transactions
C) provides a comprehensive record of business done with particular suppliers
D) ensure that every expenditure is reviewed and verified before payment is made
Show Answer
The correct answer is D .
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Question 130: An accounting ratio that considers only quick assets to determine the short-term safety margin of a firm is the?
Options:
A) fixed assets ratio
B) capital gearing ratio
C) current assets ratio
D) acid test ratio
Show Answer
The correct answer is D .