Financial Past Questions And Answers
In converting a partnership into a limited liability company, the necessary accounts to be opened in the books of the company are
- A. business purchase account and ordinary share capital account
- B. Business purchase account, vendor account and ordinary share capital account
- C. business purchase account and vendor account
- D. ordinary share capital account, vendor account and unpaid share capital account
The accounting convention which states that profit must not be recognized until realized while all losses should be adequately provided for it termed
- A. materiality
- B. objectivity
- C. consistency
- D. conservatism
The diary or events in which all financial transactions are recorded for easy reference and to assist in the double entry system is
- A) Ledger
- B) Journal
- C) Purchases and sales day books
- D) Debit and credit documents
The total cash payments during the month
- A) #8,880
- B) #8,312
- C) #6,568
- D) #2,312
A Sales Day Book is used for recording _______.
- A) Credit sales
- B) sales returns
- C) hire purchase
- D) cash sales
In company account, dividend payments are effected in which of the following accounts?
- A. realization
- B. current
- C. appropriation
- D. capital
\(\begin{array}{c|c} & \text{Dept A} & \text{Dept B} \\ \hline & N & \\ \hline \text{Sales} & 250 000 & 150,000 \\ \hline \text{Purchases} & 500,000 & 250 000 \\ \hline \text{Discount received} & 24 000 & \\ \hline \text{Discount allowed} & 15 000 & &
\end{array}\)
Calculate the discount received in Department B
- A. N12,000
- B. N15,000
- C. N16,000
- D. N9,000
The accounting convention that state that, stock should be value that the lower of cost and net realized value is --------------- convention
- A. marching
- B. consistency
- C. realization
- D. prudency
The instrument used in analysis and interpretation of financial statement is the
- A. accounting ratios
- B. income and expenditure extract
- C. balance sheet extract
- D. found accounting
Given:
...............................Jan.2003.........Dec. 2003
Provision for bad debt........N1000
Debtors..........................................N20000
Bad debt to be written off.......................N2000
The provision for bad debt stands at 10% of debtors. How much is to be charged to profit and loss account as provision for bad debt?
- A. N800
- B. N1000
- C. N1800
- D. N2000