On the 30/5/93 Tolu & Co. paid 2 years rent of N50,000 which was debited to the rent account. The adjustment needed as at 31st December 1993 is?

• A. debit rent account and credited adjustment account
• B. debit prepayment account and credit rent account
• C. debit rent account and credit prepayment account
• D. debit adjustment account and credit prepayment account

Changes can occur in partnership when:

i. partnership is dissolved

ii. There is amalgamation of partnership

iii.There is a change in the profit or loss sharing ratio

Iv. Intangible asset increase

• A. I,II and IV
• B. I & III
• C. I,II and III
• D. I, III and IV

A partnership’s internal regulation are set out by________

• A. A constitution
• B. A law
• C. A deed
• D. An article

The discount column on the left-hand side of cash book represents a discount

• A. received from a debtor
• B. allowed to a creditor
• C. allowed to a debtor
• D. received from a creditor

One of the the differences between bookkeeping and accounting is that the former

• A. records data while the latter interprets
• B. is regarded as the language of the business while the latter ascertains its strength
• C. interprets data while the latter records it
• D. summarises information while the latter communicates it

Accounting information is used by investors and creditors of a company to predict

• A. future cash flows of the company
• B. future tax payments of the company
• C. potential merger candidates for the company
• D. appropriate remunerations for the company's staff

In preparing a company's bank reconciliation statement at march 2014, the following items are causing the difference between the cash book balance and the bank statement balance: (1) Bank charges ?380 (2) Error by bank ?1,000 (cheque incorrectly debited to the account) (3) Lodgments not credited ?4,580 (4) Outstanding cheques ?l,475 (5) Direct debit ?350 (6) Cheque paid by the company and dishonored ?400. Which of these items will require an entry in the cash book?

• A) 2, 4 and 6
• B) 1, 5 and 6
• C) 3, 4 and 5
• D) 1, 2 and 3

Which of the following is a strong feature of partnership?

• A. The life of the partnership is generally assumed to be indefinite
• C. The transfer of ownership interest is frequent and easy to accomplish
• B. The owners are liable personally for all debts of the business
• D. The partnership is complex to form because of many legal and reporting requirements

One of the advantage of the shortcomings of single entry procedures is that?

• A. a trial balance is not available
• B. profits are overestimated
• C. there are no subsidiary books
• D. there are no control accounts

Prime cost is one of the following

• A. expenses which can be identified with an allocated to cost centers
• B. aggregate direct material cost, direct labour cost and variable direct expenses
• C. the cost taken into account in the production process whether direct or indirect
• D. the cost of commodities supply to an undertaking