Advertising expenses incurred on a product in a business organization should be charged to

• A. Sales department
• B. Production department
• C. Purchase department
• D. Administration department

MORADE had total assets of ?760,000, capital stock of ?150,000 and retained earnings of ?215,000. What was Morade’s debt-to-equity ratio?

• 2.63
• B) 1.08
• C) 0.52
• D) 0.48

A business organization prepares departmental account in order to

• A. asertian the contribution of each department to the organization
• B. ascertain interdepartmental transfer
• C. build other branches
• D. know the number of departments in the organization

Which of the following is a debit item in the purchase ledger control account?

• A. balance b/d
• B. cheque dishonoured
• C. balance c/d
• D. purchases

At the end of a trading period, wages will be

• A) debited to trading account and shown as a current liability
• B) credited to profit and loss Account and shown as a current liability
• C) credited to trading account and shown as a current asset
• D) debited to profit and loss account and shown as a current liability

Which of the following does not appear in a bank statement?

• A) Uncredited cheque
• B) Bank charges
• C) Dishonoured cheque
• D) Dividend received on behalf of customer

Gross profit in the branch adjustment account is transferred to the branch____________

• A. Income and expenditure account
• B. profit and loss account
• C. receipt and payment account
• D. trading account

Use the following information to answer the question

Sammy acquired plant an machinery costing N120,000 with an estimated useful life of 4 years and residual value of N2,000. The sum of the year digits method is used. The value of the asset at the end of the first year is

• A. N5,000
• B. N8,000
• C. N2,000
• D. N3,000

Use the following information to answer the question below: The following are the qualities of financial accounting information EXCEPT Options

• A) accountability and adaptability
• B) relevance and completeness
• C) verifiability and comparability
• D) objectivity and timeliness

Use the information to answer question below

Capital balances b/d:.....P.............N20,000

..........................K.............N10,000

Drawings:.................P.............N2, 000

..........................K.............N1, 000

Share of profits:.........K.............N4, 000

..........................K.............N2, 000

Salary....................P.............N1, 000

Interest on drawings:.....K.............N100

..........................K.............N20

If the capital of the partnership is unfixed, what is K's current accounts?

• A. N11,950
• B. N10,950
• C. N20
• D. NO OPTION