Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

• A. Partners salaries
• B. Interest on capital
• C. Interest on loans
• D. Partners drawings

When goodwill is not retained in the business, the entries in the new partners' book will be to debit?

• A. good account and credit partners' capital account
• B. partners' capital account and credit goodwill account
• C. cash account and credit goodwill account
• D. goodwill account and credit cash account

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

Stock 1/1/2002..................................N40 000

Goods received from head office.................N800 000

Goods returned to head office...................N34 000

Sales...........................................N916000

Stock 31/12/2000................................N72 000

From the data above determine the cost of goods credited to the head office trading account.

• A. N766 000
• B. N840 000
• C. N734 000
• D. N806 000

The records of wages due but not yet paid is an example of an adjustment for

• A. apportionment of revenue between two periods
• B. recognizing accrued expenses
• C. recognizing unaccounted revenue
• D. recognizing prepaid expenses

The tier of government that uses financial memorandum is the?

• A. federal government
• B. state government
• C. local government
• D. municipal government

All but one of the following are examples of capital reserves.

• A) Share premium
• B) Revaluation surplus
• C) Pre-incorporation profit
• D) debenture premium

a. Identify the errors in the following transactions and state if they wouldaffect the agreement of the trial balance totals

- Purchase of consumable posted to purchases account

b. An invoice amount incorrectly posted to purchases day book

c. Returns outwards posted to the personal account only

d. The totals sales N120,000 was recorded as N102,000

e. Payment of cheque to Ige entered on the receipt side of the cash book and credited to Ige's account

The corresponding entry of personal accounts found in the debit side of the cash is to

• A. credit real accounts
• B. debit real accounts
• C. credit the ledger
• D. debit the ledger

If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to

• A. have a higher cost of goods sold
• B. have a higher value of closing stock
• C. have a higher gross profit
• D. pay higher income tax