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 11: If the inventory at the end of the current year is understated and the error is not caught during the following year, the effect is to?
Options:
A) overstate income this year and understate in next year
B) understate income this year and overstate in next year
C) understate this year's income with no effect on the next year's
D) overstate the income for the two-year period
Show Answer
The correct answer is A .
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Question 12: The major function of accounting bodies in Nigeria is to?
Options:
A) provide proper financial management of businesses
B) provide good remuneration to the members
C) promote the ethics of the profession
D) show the dynamic nature of the profession
Show Answer
The correct answer is C .
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Question 13: Goodwill can be valued in partnership when?
Options:
A) a partners make profits
B) large losses are made
C) a partner retires
D) a new branch is opened
Show Answer
The correct answer is D .
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Question 14: The document that is used to acknowledge the acceptance of the return of goods by the seller from the buyer is known as
Options:
A) credit note
B) debit note
C) invoice
D) voucher
Show Answer
The correct answer is A .
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Question 15:
Use the information below to answer question
An asset was purchase for ₦343m in 2003.
The estimated life of the asset was 3 years with a residual value of ₦28m.
What was the asset value at the beginning of the third year?
Options:
A) ₦63m
B) ₦133m
C) ₦36m
D) ₦28m
Show Answer
The correct answer is D .
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Question 16:
Given:
Light expenses...................₦400
Purchases........................₦3,000
Sales............................₦1,200
Creditors........................₦2,250
Debtors..........................₦50
Calculate the total of the trial balance?
Options:
A) ₦4,250
B) ₦3,500
C) ₦4,300
D) ₦3,450
Show Answer
The correct answer is D .
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Question 17:
Use the following information to answer this question.
Provision for bad debt 1500
Additional information
1. Bad debt written off amount to 3000
2. Debtors balance as at the end of the year is 28,000
3. Provision for bad debts stand at 10%
How much is to be charged to profit and loss account as provision for bad debt?
Options:
A) ₦2, 800
B) ₦1, 000
C) ₦2, 500
D) ₦3, 000
Show Answer
The correct answer is B .
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Question 18: 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 .
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Question 19:
Which of the following concepts recognizes the principle of double entry?
Options:
A) business entity
B) accrual
C) going concern
D) dual aspect
Show Answer
The correct answer is D .
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Question 20:
Motor: ₦10 000
Fixtures: ₦5 000
Cash: ₦2 500
Creditors: ₦7 000
Loan: ?
LOAN IS 30% OF CREDITORS.
A company has departments S,T and U. The sales are ₦20 000,20 000, ₦40 000 AND ₦60 000 respectively if the sales commission paid is ₦12 000, how much is T's share?
Options:
A) ₦8000
B) ₦2000
C) ₦4000
D) ₦6000
Show Answer
The correct answer is C .