Which of the following is a correct expression of the accounting equation?

• A) Assets
• B) Assets = Liabilities - Owner
• C) Assets + Owners
• D) Assets = Liabilities - Owner

On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?

• A. N10,000 loss
• B. N2,000 loss
• C. N6,000 gain
• D. N8,000 gain

Use the information below to answer questions .

Motor Vehicle Account as at 31st December 2001.

Debit:

Jan. 1, cost ................N1950 000

Dec.31, Addition ............ N400 000

Credit:

Jan. 1, Depreciation ........N1360 000

June 30, Sales proceeds...... N700 000

The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.

Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?

• A. N280,000
• B. N289,000
• C. N250,000
• D. N340,000

Use the information below to answer question .

...........PQ Manufacturing Company

Raw materials (1/11/2001)...........N3 500

Raw materials (31/12/2001)..........N4 900

Purchase of raw materials...........N56 000

Salary .............................N63 000

Wages...............................N148 000

Factory lighting ...................N3 080

Plant Depreciation..................N2 800

Factory Insurance ..................N2 170

The overhead cost is?

• A. N71 050
• B. N68 250
• C. N67 970
• D. N66 080

Which of the following is a journal as well as a ledger?

• A. Nominal ledger
• B. Sales day book
• C. General ledger
• D. cash book

A statement in a double-entry system in which are recorded all the transactions of one specific class, which takes place during the period is called

• A. Double entry system
• B. Ledger
• C. Cash Book
• D. Petty Cash Book

Given:

Stock at start:

Raw materials................N57 000

Work-in-progress.............N42 000

Finished goods...............N71 000

Purchase of raw materials amount to N81 000, direct labour is N38 000 and factory overhead N29 000.

Calculate the prime cost?

• A. N176 000
• B. N170 000
• C. N167 000
• D. N156 000

The capital employed is

• A. N13 000
• B. N9 900
• C. N8 400
• D. N9 000

A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the

• A) weighted average method
• B) simple average method
• C) FIFO method
• D) LIFO method

A business shows total debtors’ balances of ?400,000 in its ledger at the end of its financial year. A customer owing ?40,000 is bankrupt, and there is no possibility of getting the debt paid. A further 2% of the debt is considered doubtful. What debtor’s total will be included as a current asset in the balance sheet?

• A) ?400,000
• B) ?352,800
• C) ?352,000
• D) ?436,200