When shares are issued at a discount, entries are to debit

• A. application allotment account and credit discount accoun
• B. discount account and credit
• C. cash account and credit discount account
• D. discount account and credit bank account

The gross profit disclosed in the branch stock adjustment account represents

• A) Head office profit
• B) unrealized profit
• C) estimated profit
• D) branch profit

13 State Bank collected a note for A-Makura Company. This collection, not yet recorded in AL-Makura's books, appears on the bank reconciliation as?

• A. an addition to balance per book
• B. a deduction from balance per bank statement
• C. an addition to balance per bank statement
• D. a deduction from balance per books

Capital and revenue expenditures of government are usually accounted for under funds which include?

• A. A personal advances, technical, special trust
• B. technical, special trusth and commercial funds
• C. personal advances, treasury clearance and special trusth funds
• D. commercial loans and treasury clearance funds

Stationery which will be used over a long period of time is usually recorded as an expense instead of an asset. This concept is called

• A. entity
• B. accrual
• C. realization
• D. materiality

Prime cost include

• cost of oil to lubricate machines
• B) carriage inwards
• C) factory heating and lighting
• D) storekeeper

Mamsa Nigeria Limited issued 20 000 ordinary shares of N1.50 per share on 2nd July 2002.

1500 ordinary shares were fully subscribed for and their monies received as below:

On application .........................N0.40

On allotment ...........................N0.20

First call (including premium ofN0.50)..N0.70

What is the balance of the ordinary share capital account after the first call was received?

• A. N300
• B. N1050
• C. N1200
• D. 1950

Which of the following assets could be described as a current asset?

• A) Stock of goods for resale
• B) Machinery to manufacture goods for resale
• C) Buildings to house the machinery
• D) Land on which the buildings stand

If the assets and liabilities of a firm were valued at N17,200 and N5,120 respectively, the capital of the firm would be?

• A. N22 320
• B. N17 200
• C. N12 080
• D. 5 120

In a trial balance, income and liabilities are?

• A. debited and credited respectively
• B. credited
• C. credited and debited respectively
• D. debited