Four broad classifications of overheads are

• A. production, selling, distribution and administration
• B. production, selling, distribution and material
• C. selling, distribution and material
• D. distribution, selling, administration and materials

Kola and Sunday are in partnership sharing profits and losses equally. If Kemi is admitted as a new partner to take 1/5 as her share, what is the new profit or loss sharing ratio?

• A. Kola 1/3, Sunday 1/3 and Kemi 1/3
• B. Kola 1/5, Sunday 1/5 and Kemi 3/5
• C. Kola 2/5, Sunday 1/5 and Kemi 2/5
• D. Kola 2/5, Sunday 2/5 and Kemi 1/5

Which of the following are advantages of departmental accounts?

• A. the capital of the business can be calculated easily
• B. easy knowledge of the sources of funding
• C. encouragement of healthy rivalry among the various department
• D. the department making the highest profit can be easily determined

The power to appoint the Auditor General of the Federation is vested in the

• A. National Assembly
• B. Civil Service Commission
• C. Judicial Service Commission
• D. President

Use this information below to answer this question

₦

Capital: Opening balance 307,000

Closing balance 342,000

Net profit for the period 121,600

Purchases 706,000

Carriage inwards 17,500

Cost of goods sold 740,700

Total selling, general and

administration expenses 526,000

Discount received 9,650

Opening stock 98,800

What is the gross profit for the period?

• A. ₦535,650
• B. ₦628,300
• C. ₦647,600
• D. ₦106,400

The debenture issued at par above the nominal value is Said to be issued at a

• A. margin
• B. premium
• C. cost price
• D. mark-up

Which of the following accounting records are source documents?

• A. journals and ledgers
• B. sales invoice and debit note
• C. sales invoice and cashbook
• D. cashbook and debit note

The value of the sales ledger control account is derived from the summation of the

• A. total creditors control account
• B. total debtors control account
• C. all day books
• D. both the debtors and creditors accounts

Fiyinfoluwa Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000 on debiting the vehicle account, the corresponding credit for the purchase will appear in the

• A. sales day book
• B. cash book
• C. sales subsidiary book
• D. purchase day book

In preparing accounting records, the owners of a business and the business are treated as

• A. separate legal entities
• B. partners
• C. the same person
• D. having business relationship