Reliability as a quality of accounting information means that accounting

• A. rules and guidelines are applied
• B. information is prepared based on evidence
• C. information is comprehensive
• D. report is prepared promptly

A machine bought for #35,000 was estimated to have a life span of 5 years with a scrap value of #9,000. If the scrap value is presently #15,000 what will be the yearly depreciation using straight line method?

• A. #4,000
• B. #7,000
• C. #11,000
• D. #24,000

Which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of a business?

• A) Decrease in the closing balance of sales ledger control account
• B) Increase in net profit
• C) Increase in the value of sales
• D) Decrease in the value of purchases in the trading account

Use the information below to answer questions

Purchase:..Raw materials.................N15 000

Finished goods...........................N11 400

Stock:....(1/7/01)Raw materials..........N2 250

Work-in-progress.........................N1 875

Wages:.....Direct........................N17 100

Indirect.................................N5 400

Stock:.....(30/06/02)Raw materials.......N3 000

Work-in-progress.........................N3 375

The cost of raw materials consumed is?

• A. N17 250
• B. N15 750
• C. N15 000
• D. N14 250

Use the information above to answer question

Period 1:

........Cash to petty cashier.............N1000

........Petty cashier pays out............N780

Period 2:

........Petty cashier pays out............N840

If the float is increased to N1200, how much should the petty cashier receive after period 2?

• A. 160
• B. 840
• C. 1000
• D. 1040

The receipt of cash from customers in a payment of their account would recorded by a:

• A) Debit to account receivable; credit to cash
• B) Debit to cash credit to accounts receivable
• C) Debit to cash, credit to accounts payable
• D) Debit to account payable credit to cash

Which of the following expenses relates to the profit and loss account of a manufacturing firm

• A. Direct materials
• B. Direct labour
• C. Administrative overhead
• D. Work-in-progress

The journal is a book

• A) of primary entry into which all transactions are entered before posting
• B) kept by journalist for reporting events
• C) of prime entry into which postings are made from the ledger
• D) of analyzing major accounts

If an organization maintains a periodic stock system, the stock quantities are?

• A. updated at the end of the accounting year
• B. not considered in the updating process
• C. updated continuously
• D. updated at the beginning of the accounting year

Emeka Manufacturing Company (Extract) Manufacturing Account. Direct material.....................N5 000 Direct labour.......................N4 500 Direct expenses.....................N3 000 Factory overhead....................N2 500 Selling distribution................N1 500 Calculating the production cost?

• A. N16500
• B. N15 000
• C. N14 000
• D. N12 500