The prime cost is the total of the?

• A. production cost + selling expenses
• B. direct material + direct labour + direct expenses
• C. direct material + work overhead expenses
• D. administrative expenses + selling + distribution expenses

One of the following errors will affect he agreement of the trial balance

• A) error of omission
• B) trial balance error
• C) principle error
• D) error of original entry

Accrual concept stipulates that?

• A. revenue should be recognized when it is earned
• B. costs should be recognized when the expenditure is paid
• C. revenue should be recognized only when cash is paid
• D. costs should be recognized when the are incurred

When no partnership agreements exists, which of the following governs the situation?

• A) Article of Association
• B) Memorandum of Association
• C) Partnership Deed
• D) Partnership Act

WHAT IS THE VALUE OF RAW MATERIALS ISSUED ON MAY 17TH BASED ON THE LIFO METHOD?

• A. N60
• B. N61
• C. N62
• D. N64

NAFARA AND SONS Balance Sheet items as at 31st December, 1987.

Capital N74480

Creditors N15875

Prepaid expenses N580

Motor vehicles N34750

Furniture N35850

Accrued expenses N645

Stock N8100

Cash balances N9911

Debtors N1809

Compute the value of current assets?

• A. N20400
• B. N20465
• C. N35695
• D. N19820

Which of the following condition would attract credit and debit notes to be used?

• A. When goods are received from supplier
• B. When a trial balance is extracted
• C. When a buyer is under or over charged
• D. When goods are sold to a buyer

Calculate the closing stock under FIFO method

• A. N875
• B. N675
• C. N600
• D. N300

Which of these methods of depreciation is not recommended by SAS No. 9?

• A) Annuity
• B) Straight line
• C) Sum of the year digit
• D) Depletion unit

#800,000 worth of ordinary shares of 50k were issued at #1 each, payable in full on application. The entry in the cash book would be to

• A. credit #1,600,000
• B. debit #1,600,000
• C. credit #1,600,000
• D. debit #800,000