The income and expenditure account of a club is the same as

• A. single entry account
• B. a profit and loss account
• C. a trading account
• D. a cash book

The net profit from a trading account of a non-profit making organization would be treated as income in the

• A. income and expenditure account
• B. receipt and payment account
• C. balance sheet
• D. statement of affairs

Which of the following is a debit item in the purchases ledger control account.

The effect of the payment of liability is that it

• A. increase both assets and liabilities
• B. increase assets and decrease liabilities
• C. decrease assets and increase liabilities
• D. decrease both assets and liabilities

Companies and Allied Matters Act. 1990 requires every company to keep certain statutory books. Which of the following is not part of the statutory books to be kept by the company?

• A) register of directors and secretaries
• B) a register of charges (fixed and floating)
• C) minutes books of meetings of the company and meetings of its directors
• D) a register of companies in the same line of business

Use the information below to answer questions 18 and 19. July 30 Closing stock 100 units at N90 July 8 Purchased 200 units at N95 July 10 Sold 160 units July 17 Returned 80 faulty units purchased at N95 July 18 Purchased 200 units at N105 July 20 Sold 180 units July 28 Purchased 200 units at N110 July 29 Sold 120 units July 30 Sold 100 units How many units were at hand as at July 30?

• A. 80
• B. 100
• C. 60
• D. 160

a. What are incomplete records?

b. Outlinethree limitations of keeping incomplete records

c. Statethree reasons a business keeps incomplete records

Where the debit side of the income and expenditure account is higher than the credit side, the difference is a?

• A. deflicit
• B. surplus
• C. gain
• D. loss

Which of the following stock valuation method is suitable under inflationary conditions?

• A. LIFO
• B. simple average
• C. FIFO
• D. weighted average

An advantage of using accounting ratios is that they

• A. can be easily calculated
• B. facilitate decision making
• C. are stipulated by law
• D. shows error and fraud