Financial Past Questions And Answers
In what way can goodwill be written off in a partnership business?
- A. Using the partners' profit and loss sharing ratio
- B. By neglecting the ratio of partners capital contributions
- C. By sharing it unequally among the partners where no agreement exists
- D. By sharing it among the active partners only
The factory cost of producing goods is made up of
- A. prime cost and factory overhead
- B. prime cost and office overhead
- C. raw materials consumed and fixed cost
- D. Raw materials and administrative overhead
The test of arithmetical accuracy of all postings in the ledger is provided in the:
- A) Journal
- B) Day book
- C) Cash book
- D) Trial balance
Which of the following items are apportioned on the basis of purchases in preparing departmental accounts?
- A. Lighting and cooling expenses
- B. Carriage outwards
- C. Carriage inwards
- D. Selling and distribution expenses
When starting with the cash book balance in preparing the bank reconciliation statement, the followings are added
- A. Unpresented cheque
- B. Dividend
- C. Uncredited cheque
- D. credit transfer
In times of rising prices, what effects do the uses of the historical cost concept have on a company's asset values and profit?
- A) Asset values and profit both understated
- B) Asset values and profit both overstated
- C) Asset values understated and profit overstated
- D) Asset values overstated and profit understated
Which of these is not method of stock valuation?
- A. FIFO method
- B. Base method
- C. Standard method
- D. LIFO method
Which of the following is a function of the sales journal
- A) it records both cash and credit sales
- B) it shows the balance in the sales account
- C) it record credit sales only
- D) it shows the aggregate balances in the debtors lodger
When no partnership agreements exists, which of the following governs the situation?
- A) Article of Association
- B) Memorandum of Association
- C) Partnership Deed
- D) Partnership Act
\(\begin{array}{c|c} & \text{N} \\ \hline \text{Stock Jan 1} & 2000 \\ \hline \text{Purchases} & 4000 \\ \hline \text{Carriage inwards} & 500 \\ \hline \text{Sales} & 9000 \\ \hline \text{Carriage outwards} & 500\end{array}\)
Calculate the gross profit?
- A. ₦9,000
- B. ₦2,500
- C. ₦3,000
- D. ₦1,500