From which of the following sources are creditors control account most likely to be posted?

• A. supplier's invoices
• B. cash disbursements journal
• C. subsidiary debtors ledger
• D. purchases journal

Given: 31/12/98 31/12/99

Assets: Plant and Mach. N1,500 N1,200

Fixtures N700 N520

Stock N500 N600

Debtors N900 N400

Cash N200 N300

Liabilities: Creditor N500 N600

Loan N600 N400

Determine the total fixed assets from the opening balance sheet?

• A. N2,200
• B. N2,020
• C. N1,720
• D. N2,070

The difference between book keeping and accounting is that while

• A. book keeping interprets data, accounting records it
• B. book keeping is regarded as the language of the business accounting ascertians its strength and weakness
• C. book keeping records data accounting interprets it
• D. book keeping summaries information accounting communicates it

Use the information below to answer this question

Date.............QTY. .....RATE........TOTAL

...............(Units).....N...........N

January 2nd.....500........25..........12500

March 7th.......250........28..........7000

Issues were made as follows:

Date............QTY. (uNITS)

January 9th .....200

February 14th ...200

March 11th ......200

The closing stock on March 11th by LIFO valuation is

• A. N4200
• B. N2700
• C. N4500
• D. N3900

Calculate the total purchase of a business from the given information, cash purchases 3000; payments to creditors 53,000; creditors at the beginning 4000; creditors at the end 2,000

• A. N52,000
• B. N51,000
• C. N55,000
• D. N50,000

The starting point for the production of accounts from incomplete records is to ______

• A) ascertain the total sales
• B) compute the opening stock of goods sold
• C) verify the total purchases
• D) prepare an opening statement of affairs

The formula for calculating depreciation using straight line method is

• A. \( \frac{\text{Scrape Value} + \text{Sales}}{Useful life} \)
• B. \( \frac{\text{Cost } - \text{Scrape Value}}{Useful life} \)
• C. \( \frac{\text{Sales } - \text{Scrape Value}}{Useful life} \)
• D. \( \frac{\text{Purchases } + \text{Sales }}{Useful life} \)

1/5/07 Purchased 100 bags of milk at #10.00k each 3/5/07 Purchased 60 bags of milk at #11.50k each 15/5/07 Issued 85 bags of milk 15/5/07 Purchased 180 bags of milk at #12.80K each 22/5/07 Issued 145 bags of milk. Using FIFO method, what would be the value of stock as at 9/5/07?

• A. #862.50
• B. #840.00
• C. #806.25
• D. #750.00

In the preparation of statement of profit, if the opening capital is greater than closing capital, there will be

• A. profit
• B. capital
• C. loss
• D. cash

Accounting information is used by investors and creditors of a company to predict

• A. potential merger candidates for the company
• B. appropriate remunerations for the company
• C. future cash flows of the company
• D. future tax payments of the company