Financial Past Questions And Answers
When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at
- A. a price above or below the stipulated price
- B. any price but not below the transfer price
- C. cost price
- D. a price that is equal to the mark-up
Bala ltd acquired the business of bello ltd and caused the separate existence of the latter company to terminate.
- A. conversion
- B. dissolution
- C. merger
- D. absorption
The value of Y is
- A. N11 500
- B. N 8 500
- C. N13000
- D. N10000
The suspense account is used to correct book-keeping error where the
- A. amount involved is quite significant
- B. item involved is not material
- C. item involved is unknown
- D. error does not affect the agreement of the trial balance
Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Stock} & 11,250 \\
\hline
\text{Debtors} & 18,750 \\
\hline
\text{Creditors} & 3,750 \\
\hline
\text{Bank} & 4,000 \\
\hline
\text{Net profit} & 7,500 \\
\hline
\text{Net} & 60,000 \\
\end{array}\)
Determine the debtors collection period
- A. 114 days
- B. 68 days
- C. 37 days
- D. 41 days
In the preparation of account, the owners of the business and the business concerned are treated as:
- A. partners
- B. joint venture
- C. the same person
- D. separate legal entities
Which of the following statements best describes a limited liability company?
- A) In Jaw it is regarded as having separate existence from its owners
- B) It is normally owned and managed by the same persons
- C) It is normally a non-profit organization
- D) It is normally owned by just one person
A company has departments M and N. The expenses incurred wholly in M is N5000. General expenses incurred amount to N25000. Expenses are apportioned in the ratio 2:3 for departments M and N respectively. What is N's share of the expense?
- A. N10 000
- B. N15 000
- C. N18 000
- D. N20 000
The objective of the purchases ledger control account is to establish the
- A) credit purchases
- B) net profit
- C) total purchase
- D) gross profit
Which accounting concept states that revenues and expenses are recognized as theyare earned or incurred and not when money is received?
- A) Entity
- B) Realization
- C) Accrual
- D) Periodicity