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 21:
Accounting entry for dissolution expenses is
Options:
A) Dr : Partnership account ;Cr: Realization account
B) Dr: Revaluation account; Cr: Partnership account
C) Dr: Realization account; Cr: Cash account
D) Dr: Partners current account; Cr: Realization account
Show Answer
The correct answer is C .
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Question 22: A fixed cost is fixed only in relation to?
Options:
A) the quality of goods produced
B) the quantity of goods sold
C) a given period of time and a range of activities
D) a given period of time and the nature of activity
Show Answer
The correct answer is D .
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Question 23: The receipt of cash from a customer who bought goods with ₦800 list price, 25% trade discount and 2/10, n/30 terms would, if paid within the discount period, amount to
Options:
A) ₦576
B) ₦588
C) ₦600
D) ₦624
Show Answer
The correct answer is B .
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Question 24:
Use the information below to answer questions
Turnover...........................₦120 000
Net profit before tax..............₦40 000
Net profit b/f.....................₦68 000
Proposed dividends:
Ordinary shares....................₦8 000
Preference shares..................₦6 000
Corporate tax is 30%...............₦10 000
The undistributed profit carried forward is?
Options:
A) ₦68 000
B) ₦20 000
C) ₦74 000
D) ₦34 000
Show Answer
The correct answer is A .
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Question 25:
Use the information below to answer questions
Balance as per cash book................₦13560
Unpresented cheques.....................₦5120
Uncredited lodgements...................₦2300
Dividend received not entered
In the cash book........................₦2000
Bank charges............................₦280
Standing order payments.................₦600
Balance as per bank statement............?
Calculate the balance in the bank statement.
Options:
A) ₦14 680
B) ₦15 560
C) 17 500
D) 16 380
Show Answer
The correct answer is C .
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Question 26:
The principle of double entry developed from the axioms of accounting equation is given as
Options:
A) Liabilties + Equity = Net assets
B) Assets + Equity = Liabilities
C) Liabilities + Equity = Assets
D) Assets + Liability = Equity
Show Answer
The correct answer is C .
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Question 27:
The following was extracted from the books of MEGA COMPANY NIG. LTD
| ₦ |
Trade debtors | 350,000 |
Fixtures and fittings | 600,000 |
Cash at bank | 25,000 |
Cash in hand | 5,500 |
Trade creditors | 116,500 |
Bank overdraft | 7,500 |
Building | 950,000 |
Motor van | 35,000 |
The working capital of the company is
Options:
A) ₦156,000
B) ₦280,000
C) ₦565,000
D) ₦256,500
Show Answer
The correct answer is D .
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Question 28:
Use the information below to answer the question that follows:
Given:
| Fixed assets | ₦85,600 |
| Sales | ₦197,000 |
| Stock | ₦34,300 |
| Salaries | ₦37,000 |
| Purchases | ₦127,700 |
| Share capital | ₦120,000 |
| Creditors | ₦16,050 |
| Motor expenses | ₦10,500 |
| Debtors | ₦25,000 |
Determine the total of the trial balance.
Options:
A) ₦335,050
B) ₦333,050
C) ₦323,050
D) ₦230,550
Show Answer
The correct answer is B .
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Question 29: The expenses incurred in purchasing a vehicle is a
Options:
A) revenue expenditure
B) capital expenditure
C) recurrent expenditure
D) concurrent expenditure
Show Answer
The correct answer is B .
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Question 30:
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 .