Changes in the profit sharing ratio may occur as a result of

I. skill contributed by partners

II. health status

III. old age

IV. Intangible asset increase

• A. I, III and IV
• B. I and III
• C. I, II and III
• D. I, II and IV

Which method of pricing can be used satisfactorily in either rising or falling price situation?

• A. Market price
• B. Average method
• C. FIFO
• D. Standard price

Palaju Enterprises had fixed assets costing N900,000 with provision for depreciation of N150,000 were disposed of during the period. Fixed assets of N100,000 were added during the year. Provision for depreciation was N350,000 at the beginning of the year and N300,000 at the end of the year. The depreciation expenses charged for the year is?

• A. N450,000
• B. N250,000
• C. N150,000
• D. N100,000

In the trading and profit and loss account of a manufacturing organization, purchases is?

• A. always the same amount as the total factory overhead cost
• B. given separately
• C. equivalent to the total cost of goods manufactured
• D. always the same as the prime cost

Accounting information seeks to provide

• A. permanent records for all transactions
• B. analysis of accounts to trade debtors
• C. audited reports on the accounts of a company
• D. data about the employees of a company

Which of the following is the most liquid

• A) stock
• B) debtors
• C) machinery
• D) loose tools

The best method of allocating expenses among departments is to?

• A. allocate expenses to each department in proportion to the sales of that department
• B. charge against each department those costs which are within its control
• C. charge expenses against each department in proportion to the purchases of that department
• D. allocate expenses to each section of the department in relation to the number of people

The book value per share is obtained by dividing?

• A. shareholders equity by outstanding shares
• B. total assets by outstanding shares
• C. gross profit by outstanding shares
• D. net profit by outstanding shares

Given:

Liabilities..............N23,700

Current assets...........N20,300

Fixed assets.............N64,500

The total trial balance is?

• A. N110,000
• B. N65,000
• C. N55,000
• D. N45,000

The main aim of financial accounting is to

• A) provide management with detailed analyses of cost
• B) calculate profit
• C) record all transactions with the books of account
• D) present the financial results to the organization by means of recognized statements