Financial Past Questions And Answers
A material overstatement in ending inventory was discovered after the year-end financial statements of a company were issued to the public. What effect did this error have on the year-end financial statements?
- Current assets: Understated; Gross profit: Overstated
- B) Current assets: Overstated; Gross profit: Overstated
- C) Current assets: Understated; Gross profit: Understated
- D) Current assets: Overstated; Gross profit: Understated
An analytical cash book is used to ______.
- A) indicate sources of cash received
- B) Categorise petty cash payment
- C) separate cash and bank balance
- D) analyse amounts due from debtors
Subscriptions received are always put at 125% of the total donations received and refreshment sales.
Compute the subscriptions received.
- A. N30000
- B. N28000
- C. N24000
- D. N20000
Given: Opening capital - #1,500 Capital introduced - # 500 Profit for the year - # 800 Cash drawings - # 250 Calculate the closing capital
- A. #2,550
- B. #2,500
- C. #2,350
- D. #2,250
Capital and revenue expenditures of government are usually accounted for under funds which include
- A. technical, special trust and commercial funds
- B. personal advances, technical and public funds
- C. personal advances, treasury clearance and special trust funds
- D. commercial loans and treasury clearance funds
On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account. At 31/12/93, what portion of that amount was prepaid?
- A. N14,583
- B. N25,000
- C. N35,417
- D. N37,415
In the absence of a sales day book or sales account the credit for sales can be computed from
- A. creditors control account
- B. debtors control account
- C. opening figures of the balance sheet
- D. closing figures of the balance sheet
Advertising expenses incurred on a product in a business organization should be charged to?
- A. production department
- B. sales department
- C. administration department
- D. purchases department
Sales - #232,000 Opening stock - # 28,000 Purchases - #128,000 Carriage inwards - # 4,000 Carriage outwards - # 6,000 Closing stock - # 10,000 Discount received - # 18,000 Expenses - # 20,000 Calculate the gross profit
- A. #100,000
- B. #86,000
- C. #82,000
- D. #76,000
Use the following information to answer the questions
The transactions of All Girls' Social Club for the year 2021 are as follows:
Bar sales D 30,000; Bar purchases D 17,000 and Rent D 1,200
| 31st December | 2020 | 2021 |
| D | D | |
| Stock at bar | 1400 | 1600 |
| Owing for bar supplies | 6500 | 7300 |
The value of purchases for the year is
- A. D 16,200
- B. D 17,800
- C. D 17,000
- D. D 16,800