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 231:
(i) Fixtures account
(ii) Machinery account
(iii) Wages accounts
(iv) Rent account
Which of the above are nominal account?
Options:
A) iii and iv
B) i and ii
C) i and iii
D) ii and iii
Show Answer
The correct answer is A .
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Question 232: In a partnership account, interest on drawings is
Options:
A) debited to appropriation account
B) credited to appropiation account
C) treated as an expense in profit and loss account
D) recorded in the balance sheet as current assets
Show Answer
The correct answer is B .
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Question 233:
Use the information below to answer the question
| Liabilities ₦ | Assets ₦ |
| Capital 40,000 | Furnishing 10,000 |
| | Ceiling Fan 1,500 |
| | Cash in Hand 28,500 |
| 40,000 | 40,000 |
If at 31/1/95 the following information was ascertained;
(i) rent for shop ₦12,000 paid for the year
(ii) Total purchases ₦15,000
(iii) Total sales ₦8,200
(iv) Stock of goods left ₦10,000
(v) paid sales boy ₦500
If at 31/1/95 the following information was ascertained;
(i) rent for shop ₦12,000 paid for the year
(ii) Total purchases ₦15,000
(iii) Total sales ₦8,200
(iv) Stock of goods left ₦10,000
(v) paid sales boy ₦500
Options:
A) ₦22,800
B) ₦9,200
C) ₦800
D) ₦21,200
Show Answer
The correct answer is B .
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Question 234: Which of the following stock valuation methods is suitable under inflationary conditions?
Options:
A) FIFO
B) LIFO
C) Simple average
D) Weighted average
Show Answer
The correct answer is A .
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Question 235: In the not-for-profit-making organization, the excess of income over expenditure is?
Options:
A) deducted from the capital
B) added to the accumulated fund
C) added to the capital
D) deducted from the the accumulated fund
Show Answer
The correct answer is B .
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Question 236: Use the information below to answer this question.Timo and Chris are computer engineers who went into partnership as Teachi and Co. Timo brought cash of₦12,000 furniture worth of ₦18,000 and vehicle worth of 70,000. Chris equally brought in cash of 10,000 his building valued at 105,000 and personal computers worth ₦35,000.What is the profit sharing ratio if it’s based on capital contribution by Teechi and Co?
Options:
A) 2 : 3
B) 3 : 2
C) 6 : 5
D) 5 : 6
Show Answer
The correct answer is A .
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Question 237: An advantage of using accounting ratios is that they
Options:
A) can be easily calculated
B) facilitate decision making
C) are stipulated by law
D) shows error and fraud
Show Answer
The correct answer is B .
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Question 238:
On the 30/5/93 Tolu & Co. paid 2 years rent of ₦50,000 which was debited to the rent account.
The adjustment needed as at 31st December 1993 is?
Options:
A) debit rent account and credited adjustment account
B) debit prepayment account and credit rent account
C) debit rent account and credit prepayment account
D) debit adjustment account and credit prepayment account
Show Answer
The correct answer is C .
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Question 239:
Use the information below to answer questions 23 and 24.
............................31/12/07.......31/12/08
Stocks........................₦4 200.........₦3 900
Rates in advance..............₦1 000.........₦1 500
Accrued wages.................₦1 150.........₦1 350
Cost of goods sold was valued at ₦6 000.
Cash paid for rates and wages during the year was ₦1 300 and ₦2 200 respectively.
What is the value of purchases for the year 2008?
Options:
A) ₦6 000
B) ₦9 900
C) ₦14 100
D) ₦5 700
Show Answer
The correct answer is D .
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Question 240: when shares issued are paid for, accounting entry required is
Options:
A) debit bank or cash account and credit share capital and/or premium account
B) credit bank or cash account and debit share capital and/or premium account
C) debit shares account and credit capital account
D) credit shares account and debit capital account
Show Answer
The correct answer is A .