A total of 400,000 shares of N1 each are to be issued by Sariki company Ltd at a price of N1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?

• A. N1,000
• B. N1,200
• C. N4,800
• D. N6,000

The measure of a company's ability to pays its debts quickly is called

• A. Current ratio
• B. turnover ratio
• C. acid test ratio
• D. return of investment

Eko Local Government expenditure Hospital building ---------------------- N200,000 Drugs ---------------------------------- N180,000 Hospital beds and mattresses ------------ N40,000 Doctors' and nurses' salaries ---------- N120,000 Administrative expenses ----------------- N50,000 Capital expenditure is

• A. N420,000
• B. N380,000
• C. N240,000
• D. N200,000

One major advantage of ledger is that it

• A. is a book of original entry
• B. is only accessible to share holders during liquidation
• C. removes the need for preparing a balance sheet after each transaction
• D. can be used by any type of business

Departmental accounts re maintained to ascertain the

• A. profits of the entire organization
• B. contribution of each department
• C. expenses of each department
• D. sales of each department

An effective accounting system should provide information

• A. on new product and methods
• B. for cutomer feed back and requirement
• C. on internal and external reporting for managers and third parties
• D. for promoters, directors, labour union and distributors

Which of the following statement is correct about the head office current account and the branch current account?

• A. Both always have debit balances
• B. both always have credit balances
• C. the head office current account has a credit balance while the branch current account has a debit balance
• D. the head office current account has a debit balance while the branch current account has a credit balance

A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be

• A. credited to land and building account
• B. debited to asset revaluation account
• C. credited to asset revaluation account
• D. credited to profit and loss appropriation account

Why are adjustments in the profit and loss account necessary?

• A. To cover some expenses of the following year
• B. To ascertain the actual expenses incurred and income earned during the year
• C. To show the provision made during the year
• D. To show the total expenses paid and income received during the year

The Asa branch of Emene company Ltd, made a sales of N549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies, what should be the profit of the branch for the period?

• A. N6,500
• B. N64,600
• C. N85,380
• D. N514,600