If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an

• A. income in the profit and loss account
• B. income in the balance sheet
• C. additional cash in the profit and loss account
• D. expense in the balance sheet

Osei and Yabo were in partnership sharing profits and losses in the ratio of 2:3. On admitting Takwa, the profit and loss sharing ratio was charged to 1:1:1. Suppose Takwa paid N30 000 for goodwill , this amount would be?

• A. credited to Takwa's current account
• B. debited to goodwill account
• C. share to all the partners' capital account
• D. credited to the old partners' capital account

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

• A. Bonus
• B. Good will
• C. Premium
• D. Commission

The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is

• A. matching
• B. consistency
• C. realization
• D. going concern

The two legally recognized professional accounting bodies in Nigeria are the

• A. Nigerian Accounting Association and the Executive Cost and Management Accountants of Nigeria
• B. Institute of Certified Public Accountants of Nigeria and the Institute of Cost and Management Accountants
• C. Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria
• D. Association of Accountants of Nigeria and the Institute of Management Accountants of Nigeria

In trial balance, income and liabilities are

• A. credited
• B. credited and debited respectively
• C. debited and credited respectively
• D. debited

A debit in the suspense accounting will appear in the balance sheet as?

• A. a current asset
• B. a current lability
• C. capital
• D. drawings

The purchase journal records:

• A) invoices from creditors
• B) Debtors
• C) Cash payments to suppliers
• D) Amounts owing to employees for wages

Borrowings by a business which are not expected to be repaid in the next year is known as

• A) Loans
• B) Liabilities
• C) Non-current liabilities
• D) Current liabilities

Use the information below to answer question Sales....................................N10,900 Stock 1/1................................N1, 000 Stock 31/12..............................N2, 000 Purchases................................N4, 000 Returns outwards.........................N800 Returns inwards..........................N600 Carriage outwards........................N300 Carriage inwards.........................N200 The cost of goods available for sale is?

• A. N4 600
• B. N5 000
• C. N6 400
• D. N4 400