In an incomplete record system a trading account cannot be prepared until the?

• A. day book has been balanced
• B. amount of personal drawings has been established
• C. cash book has been balanced
• D. amount os sales and purchases has been established

Ratios can be grouped into certain categories each of which reflects a particular aspect of the financial performance or position of an entity. Those ratios which measure the extent to which assets can be quickly turned into cash are commonly called:

• A) gearing ratios
• B) liquidity ratios
• C) investment ratios
• D) Profitability ratios

The subscriptions received represent 80% of total payments and the opening balance is 30% of gate-fee collections.

The subscriptions received would be

• A. N200 000
• B. N240 000
• C. N300 000
• D. N24 000

A petty cash fund is:

• A) Used to pay relatively small amount
• B) reimbursed when the amount of money in the fund is reduced to a predetermined minimum amount
• C) Established by estimating the amount of cash needed for disbursement of relatively small amount during a specified period
• D) All of the above

The main reason for adopting a departmental account is to?

• A. record transactions for each department for better documentation
• B. tackle any recording problem as a result of expansion
• C. continuously evaluate the profitability of different departments
• D. ensure that departmental mangers are adequately monitored

In preparing accounting records, the owner of a business and the business are treated as

• A. the same person
• B. having business relationship
• C. separate legal entities
• D. partners

Use the information below to answer question

Goods from head office................N13,400

Returns to head office ...............N118

Rates and insurance paid .............N188

Wages paid ...........................N913

Cash remitted to head office..........N16,625

Stock at 1/1/2000.....................N1,875

Rents paid ...........................N325

Stock at 31/12/2000 ..................N1,975

Sundry expenses ......................N200

The profit realized from the trade is?

• A. N4 069
• B. N1 817
• C. N1 440
• D. N1 328

What is the effect of transaction when cash is paid into the bank

• A. Bank balance decrease and cash balance increase
• B. bank balance decrease and cash balance decrease
• C. cash balance increase and bank balance increase
• D. cash balance decrease and bank balance increase

Which of the following is not an asset held for the short term?

• A) cash
• B) inventories
• C) trade receivables
• D) computers

Use the information below to answer questions 28 and 29.

On January 1,2000, a club's assets and liabilities were as follows:

Club house...................N8,000

Subscription.................N300

Cash.........................N1,000

Wages owed...................N100

The club has 50 members and annual subscription is N100 per member.

Subscription received is N4,000 and this includes 1999 arrears of N200.

The accumulated fund is?

• A. N9,400
• B. N9,300
• C. N9,200
• D. N9,100