Financial Past Questions And Answers
To compute gearing ratio, divide?
- A. profit by capital employed
- B. current assets by current liability
- C. profit by total assets
- D. long-term debts by equity capital
The directors' salaries paid are items of?
- A. current liabilities
- B. profit and loss account
- C. trading account
- D. current account
Use the information below to answer questions
Total current assets..................N2,000
Total fixed assets....................N4,000
Current liabilities...................N1,200
Drawings..............................N200
Long-term loan........................N2,000
What is the net working capital?
- A. N2,600
- B. N1,800
- C. N800
- D. N600
The main purpose of transaction file is?
- A. to record assets and liabilities
- B. to update income and expenses
- C. to make organization decision
- D. to update master files
Where partnership is converted into a limited liability company, current account balances of partners are transferred to a
- A. realization account
- B. savings account
- C. share capital account
- D. capital account
Adama's bank account showed an overdraft of ?600 on 31st March. On going through the account, it was discovered that the N 1080 paid into the account on 29th march had not been credited. What should be the balance in Adama's cash accounts?
- A) N1,680 Dr.
- B) N1,080 Cr.
- C) N600 Dr.
- D) N480 Cr.
Use the following information to answer the question
| $ | |
Trade creditors (31/12/2020) | 4,000 |
| Paid for purchases in 2021: Cheques | 110,000 |
| Carriage inwards | 1,000 |
| Trade creditors (31/12/2021) | 6,000 |
The total purchase in 2021 is
- A. $121,000
- B. $113,000
- C. $117,000
- D. $111,000
The use of a three-column cash book is determine by?
- A. cash discounts
- B. trade discounts
- C. cash transactions
- D. bank transactions
Which of the following statement are correct? (i) Marketing means that only items having a physical existence may be recognized as assets (ii) This substances-over-form convention means the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect. (iii) The money measurement concept means that only items capable of being measured in monetary terms can recognized in financial statements
- A) ii only
- B) i, ii, and iii
- C) i only
- D) iii only
_______ checks the arithmetical accuracy of double entry accounts
- trading account
- B) profit and loss account
- C) balance sheet
- D) trial balance