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

Provision for bad and double debts in companies final accounts is treated in?

• A. trading account
• B. profit and loss account
• C. fund flow statement
• D. cash flow statement

________ is calculated in the manufacturing account

• A) The production cost paid in the year
• B) The total cost of goods produced
• C) The production cost of goods completed in the period
• D) The gross profit on goods sold

The following appears in the trading account except

• A. carriage inward
• B. opening stock
• C. carriage outward
• D. sales

Use the information below to answer question . Statement of assets and liabilities as at 31st December, 2001. Shareholders' interest N240 Current liabilities N20 Current assets N110 Fixed assets N140

Determine the value of the trade investment?

• A. N8m
• B. N10m
• C. N15m
• D. N20m

Use the following information to answer the question

Sammy acquired plant an machinery costing N120,000 with an estimated useful life of 4 years and residual value of N2,000. The sum of the year digits method is used.

The depreciation to be charged for the third year will be

• A. N3,000
• B. N4,000
• C. N1,000
• D. N2,000

Shares that are offered to existing shareholders at a price is called

• A. par
• B. premium
• C. right issue
• D. bonus issue

In a partnership account, interest on drawings is

• A. debited to appropriation account
• B. credited to appropiation account
• C. treated as an expense in profit and loss account
• D. recorded in the balance sheet as current assets

Which the following concepts best describes the consistency concept?

• A) Only material items are disclosed
• B) The way an item is presented always remains the same
• C) Presentation and classification of items should remain the same unless a change is required by an IFRS
• D) A, B and C

A cheque paid by you, but not yet passed through the banking system is

• A) an uncredited cheque
• B) an unpresented cheque
• C) a dishounered cheque
• D) a credit transfer