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 151:
Given:
PTF Trial Balance [Extract] as at 31 December, 1999
Dr Cr
N'000 N '000
Cash 2,000
Investments 3,000
Accounts receivable 6,000 11,000
Fund balance 11,000 11,000
If only 1/2 of the investments is sold for ₦2m and ₦5m realized from the accounts receivable what will be the balance of the fund?
Options:
A) ₦9M
B) ₦11M
C) ₦13M
D) ₦16M
Show Answer
The correct answer is B .
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Question 152: Partners' share of profit is credited to?
Options:
A) a partner's current account
B) a partner's capital account
C) the profit and loss account
D) the profit and loss appropriation account
Show Answer
The correct answer is A .
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Question 153: When a purchase business is revalued, the effect is that?
Options:
A) a decrease in the value of asset has no effect on value of goodwill
B) an increase in the value of asset is treated as an increase in the value of goodwill
C) a decrease in the value of asset is treated as an decrease in the value of goodwil
D) an increase in the value of asset is treated as an decrease in the value of goodwill
Show Answer
The correct answer is D .
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Question 154: Use the information below to answer question .Adamu Stores bought accessories from Mu'azu Beverages for ₦400 on credit. A trade discount of 10% and a cash discount of 15% were provided.Find the total amount paid?
Options:
A) ₦260
B) ₦300
C) ₦200
D) ₦380
Show Answer
The correct answer is B .
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Question 155:
Branch stock adjustment account is prepared at?
Options:
A) Cost price
B) new price
C) invoice price
D) normal price
Show Answer
The correct answer is C .
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Question 156:
Goods were purchased for resale on credit costing ₦150,000 on 30th September 20X8 from Tosanwumi International. The entry to record these transaction is debit
Options:
A) Tosanwumi International, credit purchase Account
B) Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000
C) Credit Account ₦150,000, Credit Tosanwumi International ₦150,000
D) Tosanwumi International ₦150,000, credit credit Account ₦150,000
Show Answer
The correct answer is B .
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Question 157: An item credited in the bank statement but yet to be recorded in the firm's cash book is
Options:
A) bank loan
B) contract payment
C) standing order
D) direct deposit
Show Answer
The correct answer is D .
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Question 158: 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 159:
| 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 160:
Five hundred naira monthly is allowed on an imprest system. The following transactions took place.
Period 1:
Cash advanced to petty cashier......₦500
Petty cashier paid out: stamp.......₦200
Newspaper...........................₦250
Period 2:
Cash to petty cashier...............₦450
Cashier paid for writing materials..₦350
What was the balance of cash with the petty cashier ata the end of period 1?
Options:
A) ₦50
B) ₦200
C) ₦300
D) ₦450
Show Answer
The correct answer is A .