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

1. The amount of the imprest is the same from one organization to another.

2. At the end of a fixed period, the petty cashier received a fixed sum of money.

3. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.

4. The system is a method by which a measure of control is kept on petty cash expenses.

Which of the following is correct about the imprest system?

• A. II and IV
• B. II, III and IV
• C. I, II and III
• D. III and IV

The main aim of financial accounting is to

• provide management with detailed analyses of cost
• B) calculate profit
• C) record all transactions with the books of account
• D) present the financial results to the organization by means of recognized statements

The major feature of a journal is that it has?

• A. six columns, date, particulars, folio, amount, debit and credit
• B. five columns, date particulars, folio, debit and credit
• C. three columns, date particulars and folio
• D. four columns, date particulars, folio and amount

If the purchase price exceeds the net assets of a company, the excess amount is debited to________________

• A. Cash account
• B. purchase account
• C. goodwill account
• D. sales account

Maro Merchant Bank plc is to issue N500,000 ordinary shares of 50k each at N 3.00 per share. Applications were received for N1,550,000 shares fully paid, N1,250,000 shares are to be issued on a pro rata basis and excess subscriptions were dishonored and refunds made? What will be the number of shares to be issued to a subscriber who applied for N30,000 shares?

• A. N20,000
• B. N18,000
• C. N15,000
• D. N12,000

Share premium can be used to?

i. write off discount on shares

ii. give loans to directors

iii.pay dividends

iv. pay company's formation expenses.

• A. i and iv only
• B. i and iii only
• C. ii and iii only
• D. iii and iv only

The primary or initial documents used to record or capture business transactions immediately they take place is known as:

• A) Debit and credit documents
• B) Receipt
• C) Source documents
• D) Invoice

Sales ledger control account contains the total amount in respect of

• A. investors
• B. creditors
• C. shareholders
• D. debtors

Why are adjustments in the profit loss account necessary?

• A) To cover some expenses of the following year
• B) To ascertain the actual expenses during the year
• C) To show the provisions made during the year
• D) To show the total expenses paid and income received during the year