1) An expenses is said to be revenue in nature if it
- A. adds or contributes to the operating income of the business
- B. necessitates the introduction of additional capital
- C. reduces the capital of the business
- D. adds to or improves the value of fixed assets
2) An entry in a subsidiary book which does not form part of the double entry system is a
- A. contra entry
- B. single entry
- C. journal entry
- D. memorandum entry
3) Determine wage expenses from the given information, wages outstanding at the beginning, wages paid during the period 15000 and wages outstanding of the period 2,000
- A. N16,000
- B. N17,000
- C. N13,000
- D. N14,000
4) Which method of pricing can be used satisfactorily in either rising or falling price situation?
- A. Market price
- B. Average method
- C. FIFO
- D. Standard price
Use the information below to answer this question.
Stock __ 11,250
Debtors __ 18,7503
Creditors __3750
Bank __ 4000
Net profit __ 7,500
Net_______60,000
5) Calculate the acid test ratio
- A. 5 : 1
- B. 6 : 1
- C. 6 : 1 : 1
- D. 4 : 1
6) What will be the number of shares to be issued to a subscriber who applied for 50,000 units.
- A. 20,000
- B. 18,000
- C. 15,000
- D. 12,000
Use the information below to answer this question.
Buhari and Osinbajo are in partnership with the following partnership agreement
Buhari Osinbajo
Capital 40, 000 70, 000
Salary 10, 000 15, 000
Int.on capital 5% 5%
Profit/loss sharing ratio 40 : 60
The net profit for the year ended is N80,000.
“Drawings are N80, 000 and N12, 000 for Buhari and Osinbajo respectively”
7) What is Osinbajo share of profit?
- A. N19, 800
- B. N49, 500
- C. N48, 000
- D. N29, 700
8) The major distinguishing element between the final account of a partnership and that of a sole trader is the
- A. drawing account
- B. capital account
- C. Creditor account
- D. Appropriation account
Use the information below to answer this question.
Stock …….. 11,250
Debtors ……. 18,750
Creditors ……. 3,750
Bank ……. 4,000
Net profit …… 7,500
Net ……… 60,000
9) Determine the debtors collection period
- A. 114 days
- B. 68 days
- C. 37 days
- D. 41 days
10) Prime cost is one of the following
- A. expenses which can be identified with an allocated to cost centers
- B. aggregate direct material cost, direct labour cost and variable direct expenses
- C. the cost taken into account in the production process whether direct or indirect
- D. the cost of commodities supply to an undertaking
