Financial Past Questions And Answers
The issued capital of a company is
- A) Always the same as the authorized capital
- B) The same as preference share capital
- C) Equal to the reserves of the company
- D) None of the above
Which of the following accounting records are source documents?
- A. journals and ledgers
- B. sales invoice and debit note
- C. sales invoice and cashbook
- D. cashbook and debit note
\(\begin{array}{c|c} & \text{N} \\ \hline \text{Debtors opening} & 4000 \\ \hline \text{Debtors closing} & 1500 \\ \hline \text{Cash received from debtors} & 8500 \\ \hline \text{Bad debts written off} & 350 \\ \hline \text{Discount allowed} & 500 \\ \hline \text{Discount received} & 1000
\end{array}\)
If the gross profit is N5 000, what is the net profit?
- A. N4,350
- B. N6,000
- C. N5,150
- D. N4,000
The plant and machinery account (at cost) of a business for the year ended 31 December, 2014 is as follows in the image below: The company’s policy is to charge depreciation at 20% per year on the straight line basis, with proportionate depreciation in the years of purchase and disposal. What should be the depreciation charge for the year ended 31 December 2014?
- A) ?680,000
- B) ?640,000
- C) ?610,000
- D) ?550,000
Cash discount is often recorded on?
- A. the debit side of the cash book
- B. the credit side of the cash book
- C. the folio column of the cash book
- D. both credit and debit side of the cash book
The accounting principle that is applied to check arbitrary actions on the part of accountants is?
- A. consistency
- B. materiality
- C. objectivity
- D. realization
The Assets and liabilities of Udo Co.ltd. as at 31st December, 2000.
Creditors N50,000
Debtors N46,000
Loan N100,000
Stock N20,000
Motor vehicle N120,000
Building N70,000
Accrued wages 30,000
Bank N25 ,000
The value of capital invested by the owners is?
- A. N110,000
- B. N105,000
- C. N101,000
- D. N100,000
The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of
- A. capital reserve
- B. net loss
- C. revenue reserve
- D. net income
If goods are invoiced to the branch at cost and the invoice par value is N 2 000 with 5%discount rate, can remitted to the head office is
- A. N2 100
- B. N 200
- C. N 1 900
- D. N 100
Which of the following is not a revenue account?
- A) Sales
- B) Purchases
- C) Discount received
- D) Interest received