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 751: Bala Ltd acquired the business of Bello Ltd and caused the separate existence of the latter company to terminate. This situation is best described as?
Options:
A) absorption
B) merger
C) conversion
D) dissolution
Show Answer
The correct answer is A .
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Question 752: The second and final call account was debited with?
Options:
A) ordinary share capital account ₦187,500
B) 12% preference share capital ₦375,000
C) bank account ₦187,500
D) 12% preference share capital account ₦187,500
Show Answer
The correct answer is D .
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Question 753: The term "accounting period" is used to refer to the
Options:
A) time span during which taxes are paid to the inland revenue board
B) budget period, usually one year, relied on by the accountant
C) time span, usually one year, covered by financial statement
D) period within which debtors are expected to settle accounts
Show Answer
The correct answer is C .
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Question 754:
The standing order is a payment instruction given by a
Options:
A) customer to a fellow customer
B) bank to an employee
C) customer to the bank
D) bank to the customers
Show Answer
The correct answer is C .
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Question 755:
Which of the following is prepared to ascertain the trader's capital under incomplete records?
Options:
A) statement of affairs
B) statement of capital and liabilites
C) statement of complete records
D) income statement
Show Answer
The correct answer is A .
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Question 756: Use the information below to answer questions .
On January 1/2005, a machine was bought for ₦56,000 to last for five years with a residual value of ₦1000.
the rate of the yearly depreciation expense would be?
Options:
A) 50%
B) 40%
C) 30%
D) 20%
Show Answer
The correct answer is D .
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Question 757:
Use the information below to answer the question
Gross profit b/d
Less: Salaries and wages
Electricity
Depreciation
Net profit c/d
| Dept A
₦
6,000
1,800
?
600
?
6,000 | Dept B
₦
4,000
1,200
?
?
1,600
4,000 | Total
₦
10,000
3,000
2,000
1,000
4,000
10,000 |
It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively.
The depreciation to be charged to department B is
Options:
A) ₦500
B) ₦300
C) ₦400
D) ₦600
Show Answer
The correct answer is C .
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Question 758:
Use the information below to answer this question
A company advertised and issued 750,000, 12% preference shares of N1 each to be issued₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on prorata basis.
The second final call account was debited with
Options:
A) ordinary share capital account ₦187,500
B) 12% preference share capital account ₦187,500
C) 12% preference share capital ₦375,000
D) bank account ₦187,500
Show Answer
The correct answer is B .
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Question 759:
Use the information below to answer this question
..............Total......... Dept.P.............Dept.Q
...............N...............N.................N
Sales.........10000............6000..............4000
Purchases......4000............1000..............3000
Discount received...1000..........?..................
Discounts allowed....2000...........................?.
Discount (allowed and received) are apportioned to the two departments on the basis of departmental sales and purchases.
What is department Q's share of discount allowed?
Options:
A) ₦2000
B) ₦1500
C) ₦800
D) ₦1200
Show Answer
The correct answer is C .
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Question 760: The not-for-profit-making organizations generate their income mainly from?
Options:
A) bar sales
B) subcriptions
C) rents
D) pools
Show Answer
The correct answer is B .