Financial Past Questions And Answers
The price paid by an acquiring company is the?
- A. premium
- B. purchase consideration
- C. sales consideration
- D. conversion fee
The rules of double entry states that
- A. for every debit entry, there must be a corresponding debit entry
- B. for every credit entry, there must be a corresponding credit entry
- C. all transactions must be recorded in two accounts, one account is debited and another is credited
- D. all transaction must be credited
A pottery company had sales of N176,000 during the current period and a gross profit rate of 40%. The company's cost of merchandize available for sale during the period was N128,000. The company's ending inventory is?
- A. N22,400
- B. N32,000
- C. N51,200
- D. N76,800
The main advantage of a departmental account is that its
- A. expenses are shared
- B. gross profit is computed
- C. net profit is computed
- D. balance sheet is obtained
Which of the following is not a proper form of the accounting equation
- A. fixed assets + current assets - liabilities = capital
- B. fixed assests + current assests + liabilities = capital
- C. fixed assets
- D. fixed asset + current asset
The process of cost apportionment is carried out so that
- A. indirect costs may be controlled
- B. cost units could gather overhead as they pass through cost centres
- C. variable costs may be controlled
- D. common costs are shared among cost centres
In preparing accounting records, the owners of a business and the business are treated as
- A) the same person
- B) having business relationship
- C) separate legal entities
- D) partners
In manufacturing, depreciation of office machine is charged to
- A. trading account
- B. balance sheet
- C. appropriation account
- D. profit and loss account
When the fixed capital method is used, the partners' share of profits and remunerations are credited to the
- A. current account
- B. profit and loss account
- C. profit and loss appropriation account
- D. capital account
An entry in a subsidiary book which does not form part of the double entry system is a?
- A. contra entry
- B. journal entry
- C. single entry
- D. memorandum entry