Financial Past Questions And Answers
Which the following concepts best describes the consistency concept?
- A) Only material items are disclosed
- B) The way an item is presented always remains the same
- C) Presentation and classification of items should remain the same unless a change is required by an IFRS
- D)A, B and C
Which Of the following ratios gives an idea of the liquidity of a firm?
- A) Turnover ratio
- B) Quick ratio
- C) Debt ratio
- D) Dividend yield
Use the information below to answer question
Jide and Haruna contribute N12000 each as capital and share profit equally. Jide draws N1500 and Haruna N1700 half-yearly. The profit for the year is N10000. Jide receives a salary of N2000.
The balances of current accounts of Jide and Haruna are respectively?
- A. N6000 and N5000
- B. N3000 and N3400
- C. N4000 and N4000
- D. N3000 and N600
Use the information below to answer the question that follows,
A machine bought for N35,000 was estimated to have a life span of 5years with a scrap value of N9,000. If the scrap value is now N15,000. What will be the yearly depreciation using the straight line method.?
- A. N11,000
- B. N7,000
- C. N4,000
- D. N24,000
Which of the following is a fictitious asset?
- A) prepayments
- B) preliminary expenses
- C) investment
- D) plant and machinery
Stationary which will be used over a long period of time is usually recorded as an expense instead of an asset. This concept is called?
- A. entity
- B. materiality
- C. realization
- D. accrual
Which of the following is not a book of original entry?
- A) Cash book
- B) Purchases journal
- C) Sales journal
- D) Ledger
A credit balance of ?350,000 in a cash account shows that
- A) ?350,000 was the total cash received
- B) ?350,000 was the total cash paid out
- C) Cash at hand equals ?350,000
- D) ?350,000 was the cash overspent
Lawal and co makes blocks and sell to builders. In computing prime cost, which of the following costs would be considered appropriate?
- A. Cement, sand and carriage outwards
- B. Water carriage inwards and cement
- C. Sales boys'wages, cement and sand
- D. Carriage outwards,carriage inwards and cement
In preparing the final accounts, the bad debt account is closed by a transfer to the?
- A. balance sheet
- B. provision for bad debt account
- C. profit and loss account
- D. trading account