The total cash and cheques received from customers in a control account is derived from the

• A. purchases day book
• B. cash book
• C. income and expenditure account
• D. sales journal

Use the information below to answer question Sales....................................N10,900 Stock 1/1................................N1, 000 Stock 31/12..............................N2, 000 Purchases................................N4, 000 Returns outwards.........................N800 Returns inwards..........................N600 Carriage outwards........................N300 Carriage inwards.........................N200 Find the gross profit.

• A. N7 800
• B. N7 900
• C. N9700
• D. 5700

If the gross profit margin is 10% of sales, what is the value of the cost of goods sold?

• A. N10,000
• B. N90,000
• C. N105,600
• D. N110,000

Purchases can be ascertained through the preparation of a

• A. stock account
• B. sales account
• C. total debtors control account
• D. total creditors control account

1. Cash sales 11. Cash purchases 111. Cash discount allowed 1V. Cash payment V. Cash receipts

Which of the following are recorded on the debit side of the cash book

• A. 1 and 11
• B. 1 and 111
• C. 1 and V
• D. 1 and 1V

Given:

Sales.....................N4000

Light expenses............N2900

Rent......................N1500

Purchases.................N7500

Debtors...................N6000

Creditors.................N29000

Drawings..................N25

Bank......................N400

General expenses..........N1500

Calculate the total of trial balance?

• A. N64 300
• B. N46 825
• C. N41 850
• D. N33 325

The conversion of a partners business into a limited liability company affords the

• A. general partners the chance of enjoying the limited laibility protection
• B. limited liability partners the chance of enjoying the limited liability protecction
• C. Creditors the chance of enjoying the limited liabiity protection
• D. debtors the chance of enjoying the limited liability protection

Which of the following would not be included in a balance sheet?

• Accounts receivable
• B) Accounts payable
• C) Sales
• D) Cash

The difference between a trading account and a manufacturing account is that while manufacturing account

• A) has no particular period, the trading account has
• B) does not consider cost of goods involved, the trading account does
• C) is concerned with the cost of production, the trading account is not
• D) is not concerned with stock of raw materials, the trading account is

One of the limitations of accounting is that

• A. it ascertain financial position
• B. it prevent fraud
• C. transactions are recorded in monetary terms
• D. it monitor the progress of the enterprise