Given:

....................January.............December

Assets................N28,320.............N25,320

Creditors.............N5,620..............N10,320

The proprietor made drawings of N755 per month for personal use.

The profit for the period is?

• A. N3000
• B. N1,360
• C. N9060
• D. N7700

When forming a partnership, new partners should record non-monetary assets on the new partnership's books at?

• A. their current fair market values
• B. their historical costs when first use
• C. their historical costs when first purchase by each new partner
• D. the highest values practical so that future income tax deductions are maximized

Use the information below to answer this question

Zahki Plc balance sheet (extract) as at 31st December 1997.

₦ ₦

Paid up capital 200,000 Fixed assets 300,000

Share premium 15,000

Profit and loss account 60,000 Investment 180,000

Long-term loan 180,000 Stock 28,000

Debtors 90,000

Creditors 200,000 provision(3000) 87,000

Other current liabilities 100,000 Cash 60,000

Bank 100,000

755,000755,000

The quick ratio is

• A. 0.82:1
• B. 1:53:1
• C. 0.95:1
• D. 0.91:1

The amount required to replenish the payments made from the imprest was?

• A. N399
• B. N394
• C. N358
• D. N101

The income and expenditure account differs from receipts and payments account because it

• A. accounts for notional charges
• B. records transactions that relate to the period on cash basis
• C. records transactions that relate to the period on accrual basis
• D. accounts for balance of cash at bank

One of the options below is not the source of income for non - profit organization

• A. ordinary shares
• B. donations
• C. subscription/dues
• D. entrance fees

Which of the following is not a current asset?

• A) Stock
• B) Debtors
• C) Creditors
• D) Cash

Antics Electronic Company recently bought six generators. Which of the following is the correct method of recording this transaction?

• A. Debit generator account and credit cash account
• B. Debit purchases account and credit cash account
• C. Debit cash accounts and credit purchases account
• D. Debit cash account and credit generator account

On January 1/2005, a machine was bought for N56,000 to last for five years with a residual value of N1000.

Calculate the yearly depreciation expense using the straight line method.

• A. N11 000
• B. N11 200
• C. N11 400
• D. N11 300

What act generally includes completing unfinished partnership business, collecting and paying debts, collecting partnership assets to be turned into cash and taking inventory?

• A. Formation
• B. dissolution
• C. winding up
• D. termination