Which of these methods of depreciation is not recommended by SAS No. 9?

• Annuity
• B) Straight line
• C) Sum of the year digit
• D) Depletion unit

Goods stolen at the branch is debited to

• A. branch stock account
• B. defalcations account
• C. branch debtors account
• D. branch adjustment account

If a business shows a debit balance in its own record of its bank balance, this indicates.

• A) the business has a bank overdraft
• B) the business is a debtor of the bank
• C) the business has money in the bank
• D) the ledger entry must be wrong

At the end the fiscal year, account receivable has a balance of 100,000 and allowance for doubtful account has a balance of 7,000. The expected that realized value of the account receivable is:

• A) ?107,000
• B) ?100,000
• C) ?93,000
• D) ?147,000

Use the information below to answer this question.

Dangote acquired Dantata’s business for N350,000. The total asset work were N820,000 and liabilities amounted to N 640,000

The double entry to record the goodwill in the books is debt

• A. purchase of business account and credit cash account
• B. goodwill account and credit purchase of business account
• C. cash account and credit goodwill account
• D. goodwill account and credit cash account

What type of stock valuation would a vegetable seller adopt in valuing it's product?

• A. LIFO
• B. FIFO
• C. Simple average
• D. Weighted average

Danjuma Ltd. bought 10 bags of rice for N500 each. The company was given 5% and 12% trade and cash discounts respectively. What will be recorded as discount received in the company's book?

• A. ₦250
• B. ₦570
• C. ₦850
• D. ₦600

Use the information below to answer question .

A company's authorized share capital was one million ordinary shares at N1 each. Issued 80% of its shares at N1.10 per share. 70k was payable on application, 25k on allotment, 10k due on first call and the balance on second call.

The total amount of money received on application was?

• A. N560 000
• B. N220 000
• C. N800 000
• D. N1000 000

A complete set of financial statements for Hartman Company, at December 31, 1999, would include each of the following except:

• A) Balance sheet as of December 31,1999
• B) Income statement for the year ended December 31, 1999
• C) Statement of projected cash flows for 2000
• D) Notes containing additional information that is useful interpreting the financial statements

If the total discount allowed in a cash book was N230 and the total discount received was N255, which of the following is true concerning the two discounts?

• A. They must be balanced in the cash book and the difference taken to the debtors ledger
• B. They must be balanced in the cash book and the difference taken to the trial balance
• C. They should not be balanced in the cash book before being taking to the trial balance
• D. They should not appear in the trial balance as they were already either received or paid out