The trading account is to a sole trader what income and expenditure account is to a?

• A. partnership
• B. public limited organization
• C. manufacturing organization
• D. non-profit making organization

Under which of these conditions can a company issue shares at discount? (i)A resolution must be passed at a general meeting (ii) The amount of discount must be stated in the resolution (iii) The share must have existed for at least six years (iv) On the order of a court.

• A. i, ii and iii only
• B. i, ii and iv only
• C. i, iii, and iv only
• D. ii, iii and iv only

A non-profit-making organization differs from a profit-making one in that?

• A. it does not earn income
• B. proceeds from sale of shares form part of its income
• C. all its income is committed
• D. annual subscriptions and levies form part of its income

The price paid by an acquiring company is the?

• A. premium
• B. purchase consideration
• C. sales consideration
• D. conversion fee

When a transaction causes an assets account to increase, there is?

• A. a decrease of equal amount inthe owner's equity account
• B. an increase in a liability account
• C. an increase of equal amonut in another assets account
• D. a decrease of equal amount in a liability account

Which of the following indicate that a partnership business is in place?

(i) There is a business

(ii)It is run commonly by partners

(iii)It has profit-making in view

(iv) Partners' liability is limited

• A. i and ii only
• B. i, ii and iii only
• C. i, iii and iv only
• D. ii, iii and iv only

Cost reports for the intention of management should reflect?

• A. as much details as possible
• B. summary figures only
• C. details of non-controllable expenses
• D. cost and comparable data useful in decision-making

Umar and Ahemed share profit and losses equally and have capital balances of N40,000 and N60,000 respectively. If bdullahi purchases one-third interest with no bonus, how much will he have to contribute to the partnership?

• A. N33,333
• B. N40,000
• C. N44,444
• D. N50,000

The contribution marginal on a job is the?

• A. gross profit
• B. net profit
• C. excess of sales revnue over variable costs
• D. difference between fixed and variable costs

The part of equity which is payable on winding up is called?

• A. general reserve
• B. revenue reserve
• C. capital reserve
• D. normal reserve