The cash bass of accounting requires the recognition of revenue only when they are

• A. due
• B. earned
• C. paid
• D. received

A company has departments L, M and O. Department L Occupies a space twice that of M while O occupies half the space of M. If the company pays ₦70,000 on rent, what is the amount of rent that should be allocated to M?

• A. ₦40,000
• B. ₦20,000
• C. ₦30,000
• D. ₦10,000

Use the information below to answer this question: i. cash at bank ii. cash in hand iii. premises iv. land v. creditors vi. loan from friends/bank

Determine the fixed assets

• A. iii and iv
• B. i and v
• C. ii and iv
• D. ii and vi

The gross profit on manufactured goods is the difference between the cost of goods manufactured and the?

• A. market value of goods produced
• B. prime cost of production
• C. indirect cost of production
• D. goods produced

Use this information below to answer this question.

Trading Account (Extract)

.................N.............................N......

Opening stock...19500........Sales............96 000..

Add purchases...68700.................................

................88200.................................

Less closing stock..?.................................

Cost of goods sold..?.................................

Gross profit C/D....?.................................

....................?..........................?......

The gross profit margin is 20%

Determine the closing stock

• A. N76 800
• B. N67 800
• C. N14 100
• D. N11 400

Which one of the following is not part of a company’s equity capital?

• A) Ordinary shares
• B) Preference shares
• C) Voting Shares
• D) Equity shares

When assets are realized during a partnership dissolution, the entries for the proceeds are to debit?

• A. cash account and credit realization account
• B. rassets account and credit realization account
• C. realization account and credit realization account
• D. assets account and credit cash account

Which of the following errors will affect the trial balance total?

• A. posting disscount allowed to the debit side of the discount allowed account
• B. omision of one account from the list when extracting from the ledger
• C. failure to post sales of N2,000 and purchases of N2,000 from the subsidiiary ledger
• D. omission of sales of N3,000 and purchases of N2,000

Use the following information to answer the question below. Given the following: Debtors as at 1st March: ?40,000 Creditors as at 1st March:?55,000 Cash received from debtors during the month: ?250,000 Cash paid to creditors during the month: ?180,000 Debtors as at 31st March: ?60,000 Creditors as at 31st March: ?35,000 What is the purchases figure for the month of March?

• A) ?35,000
• B) ?160,000
• C) ?211,500
• D) ?215,000

In a bank reconciliation statement, interest charged for overdrawn balances should be added to the?

• A. balance as per bank statement
• B. bank balance as per adjusted cash book
• C. aggregate balance as per cash book
• D. bank balance as per cash book