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Question 1 Report
In the absence of an agreement, partners share profits
Answer Details
In the absence of an agreement, partners share profits on an equal basis. This means that each partner is entitled to an equal share of the profits, regardless of their level of activity or capital contribution. This is known as the principle of equal sharing, which is the default rule in the absence of a partnership agreement specifying otherwise. It is important for partners to have a written agreement that specifies how profits will be divided, as well as other important terms such as the duties and responsibilities of each partner, how disputes will be resolved, and how the partnership can be dissolved.
Question 2 Report
Use the following information to answer the given question
\(\begin{array}{c|c} & D\\ \hline \text{Purchase of raw materials} & 236,500\\ \text{Returns of raw materials} & 4,750\\ \text{Carriage on raw materials} & 44,000\\ \text{Stock of raw materials at close} & 39,500 \\ \text{Factory fuel} & 150,000\\ \text{Direct wages} & 205,000\\ \text{Indirect wages} & 31, 250\\ \text{Factory power} & 3105,000\\ \text{Work-in-progress at start} & 32,500\end{array}\)
What is the value of raw materials used?
Answer Details
The value of raw materials used in production can be calculated by subtracting the closing stock of raw materials from the total cost of raw materials purchased, after adjusting for returns and adding the cost of carriage on raw materials. The calculation can be done as follows: Total cost of raw materials purchased = D236,500 Less: Returns of raw materials = D4,750 Add: Carriage on raw materials = D44,000 Net cost of raw materials purchased = D275,750 Less: Closing stock of raw materials = D39,500 Value of raw materials used = D236,250 Therefore, the value of raw materials used is D236,250. The correct option is: - D 236,250
Question 3 Report
The authorized capital of city entertainment company is made up of 200,000 2\(\frac{1}{2}\)% preference shares of Le 60 each and 300,000 ordinary shares have been issued at Le 30 each and fully paid. All the preference dividend and recommended ordinary divided Le 0.10 per share. Using the following information, the value of the ordinary share capital to be stated in the balance sheet is
Answer Details
Question 4 Report
Abu, a debtor to Dania, owed ₦10,500 at the start of the month. He paid cash of ₦40,005 during the month and received additional credit sales of ₦20,000.Using the information, Abu's balance at the end of the month is
Answer Details
To calculate Abu's balance at the end of the month, we need to add up all the cash he paid and all the credit he received, and then subtract that total from the amount he owed at the start of the month. First, Abu paid ₦40,005 in cash, which we can subtract from the amount he owed: ₦10,500 - ₦40,005 = ₦-29,505 This means that Abu has overpaid by ₦29,505. However, we also need to consider the additional credit sales of ₦20,000 that Abu received during the month. Adding the credit to the overpaid amount: ₦29,505 + ₦20,000 = ₦49,505 So, Abu's balance at the end of the month is ₦49,505 credit. Therefore, the correct answer is ₦30,505 cr.
Question 5 Report
A motor car costing D100,000 was depreciated at 20% per annum by the diminishing balance method. Two years later, it was sold for D60,000. Using the information, the net profit or loss on the sale was
Answer Details
Using the diminishing balance method, the depreciation for the first year would be 20% of D100,000 which is D20,000. The written down value at the end of the first year would be D80,000 (D100,000 - D20,000). In the second year, the depreciation would be 20% of D80,000 which is D16,000. The written down value at the end of the second year would be D64,000 (D80,000 - D16,000). The net book value (NBV) of the motor car at the time of sale would be D64,000. Therefore, the loss on sale would be the difference between the net book value (NBV) and the sale price. Loss on sale = NBV - Sale price Loss on sale = D64,000 - D60,000 Loss on sale = D4,000 So, the net loss on the sale of the motor car is D4,000. Therefore, the correct option is D 4,000 loss.
Question 6 Report
Which of the following books of original entry is used to record all payments and receipt by cash or cheque?
Answer Details
The book of original entry used to record all payments and receipts by cash or cheque is the "Cash Book". This book serves as a record of all transactions involving cash and bank, and it is considered the primary source of entry for the cash and bank accounts in the ledger. It includes both the cash transactions that are entered in the bank account and those that are directly recorded in the cash account. The other options mentioned (sales day book, purchase day book, and general journal) are books of original entry used for specific types of transactions, but not for cash and bank transactions.
Question 7 Report
A debenture holder is a
Answer Details
A debenture holder is a creditor. A debenture is a type of bond or loan issued by a company, government or organization. Debenture holders are individuals or entities that have provided loan capital to the issuing entity, in return for regular interest payments and repayment of the principal at a specified time. As a result, debenture holders are considered creditors of the issuing entity, rather than shareholders or promoters.
Question 8 Report
Which of the following is not a source of revenue for local government?
Answer Details
Question 9 Report
A stock as a form of capital of a company comprises
Answer Details
A stock, as a form of capital of a company, comprises units of shares. Shares are units of ownership in a company that are issued to investors in exchange for capital. When a person buys a share of a company's stock, they become a part owner of the company and are entitled to a portion of its profits as well as the right to vote on company matters. The total amount of shares issued by a company represents the total amount of capital it has raised through stock issuance. Therefore, the answer to the question is "units of shares."
Question 10 Report
"Financial statements do not a disclose all information users need to know about a firm" This is the concept of
Answer Details
Question 11 Report
Use the following information to answer the given question
\(\begin{array}{c|c} & Dr & Dr & \text{Balance}\\ \hline & ₦ & ₦ & ₦ \\ \text{2/1/06 Balance b/d} & & & 2,000 \\ \text{3/1/06 '23456'} & 500 & & 1,500\\ \text{4/1/06 Deposit} & & 1,000 & 2,500\\ \text{5/1/06 Deposit} & & 1500 & 4,000\\ \text{6/1/06 '23457'} & 3,000 & & 1,000\end{array}\)
Total withdrawal is
Answer Details
To find the total withdrawals, we need to calculate the balance after each transaction and see how much it has decreased from the previous balance. Starting balance (2/1/06): ₦2,000 3/1/06: ₦2,000 - ₦500 = ₦1,500 4/1/06: ₦1,500 5/1/06: ₦1,500 6/1/06: ₦1,500 - ₦3,000 = -₦1,500 Since the balance is negative at the end, it means there were more withdrawals than deposits. To find the total withdrawals, we take the absolute value of the final balance: Total withdrawals = ₦1,500 Therefore, the correct answer is ₦3,500.
Question 12 Report
The total debtors account of trading concern is N13,000. out of this 2% is irrecoverable, 5% of the balance is not like to be collected. What is the provision for doubtful debts?
Answer Details
Question 13 Report
S. Sule sets aside from his private funds ₦20.000 is referred to as
Answer Details
Question 14 Report
A service which a firm has enjoyed, but has not yet been paid for is
Answer Details
An accrued expense is a service that a firm has enjoyed, but has not yet been paid for. This means that the firm has received the benefit of the service but has not yet paid for it. Accrued expenses are usually recorded as a liability in the financial statements, indicating that the firm owes money for the service received. Examples of accrued expenses include salaries and wages owed to employees, interest owed on loans, and rent owed on leased properties.
Question 15 Report
A document which acknowledge that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically is
Answer Details
A debenture certificate is a document that acknowledges that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically. It is a type of long-term debt instrument that companies issue to raise funds from the public. When an individual buys a debenture, they are essentially lending money to the company. The company is obligated to pay interest on the debenture at a predetermined rate and return the principal amount at the end of the maturity period. A debenture certificate serves as proof of the company's debt to the holder of the certificate.
Question 16 Report
The petty cash book has
Answer Details
The petty cash book is a ledger that records small transactions and expenses made in cash by a company. It has both debit and credit balances because it records cash payments made (debit) and cash received (credit) for small expenses such as stationery, postage, and other miscellaneous expenses. Therefore, the correct answer is "both debit and credit balances."
Question 17 Report
An article cost N1,800 and is sold at a gross profit of 20% on selling price. What is the selling price?
Answer Details
Question 18 Report
A medium of imputing data into the computer is through the use of the
Answer Details
A medium of imputing data into the computer is through the use of a keyboard. A keyboard is an input device that allows the user to input alphanumeric characters and commands into the computer. It consists of a set of keys, each with a specific function, that can be pressed to input data or execute commands. When a key is pressed, a signal is sent to the computer which then processes the input and performs the required action. Keyboards come in different layouts, designs and sizes depending on the user's preference and the intended use of the computer.
Question 19 Report
The document making a public offer for he sale of a company's share is
Answer Details
A prospectus is a document that a company issues to the public when it is making an offer for the sale of its shares. It provides information about the company's operations, financial statements, management, and other relevant information that may be of interest to investors. A prospectus is an important document as it helps potential investors to make informed decisions about whether or not to invest in a company. Therefore, the correct option is 'prospectus'.
Question 20 Report
Which of the following is debited to partner's current account?
Answer Details
Drawings are debited to partner's current account. Explanation: A partner's current account is a record of transactions between the partner and the partnership. Drawings are the amounts of money that a partner takes out of the partnership for personal use. Since the drawings represent a withdrawal of cash or assets from the partnership by the partner, they are debited to the partner's current account. In other words, the partner's current account is credited for the amount of the drawings, indicating that the partner owes this amount to the partnership.
Question 21 Report
In a not for profit making organization, the excess of income over expenditure is
Answer Details
In a not for profit organization, any excess of income over expenditure is not considered as profit. Rather, it is added to the accumulated fund. The accumulated fund represents the accumulated surplus of the organization over time, and it is used to finance the organization's future activities. This is because not for profit organizations do not have shareholders or owners who can claim any surplus or profit generated by the organization. Therefore, any excess of income over expenditure is added to the accumulated fund, which is essentially the organization's equity.
Question 22 Report
Prepayment is treated in the balance sheet of firm as a
Answer Details
A prepayment is an advance payment for goods or services that have not yet been received. It is treated as a current asset in the balance sheet of a firm because it represents a future economic benefit that the firm will receive within the next 12 months. Once the goods or services are received, the prepayment is converted to an expense in the income statement.
Question 23 Report
A difference between the debit and credit totals in a trial balance is placed in
Answer Details
When preparing a trial balance, the total of all the debit balances should equal the total of all the credit balances. However, if there is a difference between the debit and credit totals, this indicates an error in the accounting records. To correct this error, the difference is placed in a temporary account called a "suspense account." The suspense account is used to temporarily hold the difference until it can be identified and corrected. Once the error is identified and corrected, the appropriate account is adjusted to reflect the correction. If the difference is due to a timing difference or an item that cannot be specifically identified, the amount in the suspense account will be transferred to the profit and loss account or appropriate account. Therefore, the correct option to select in this scenario would be the "suspense account."
Question 24 Report
As evidence of payment to a government treasury, revenue collectors issue
Answer Details
Revenue collectors issue treasury receipts as evidence of payment to a government treasury. Treasury receipts are official documents that show that a payment has been made to the government. They are usually issued by government revenue offices or tax collectors and contain details such as the amount paid, the purpose of the payment, and the date of the payment. Treasury receipts are important documents that can be used for accounting, auditing, and legal purposes. They serve as proof of payment and can be used to reconcile accounts, track revenue collections, and verify payments made to the government.
Question 25 Report
Hardware in data processing refers to
Answer Details
Hardware in data processing refers to the mechanical and physical components of a computer system such as the central processing unit (CPU), input/output devices, storage devices, and other components that make up the physical structure of the computer. These are the tangible, physical parts of the computer system that can be seen, touched, and manipulated. The hardware of a computer system enables it to receive, process, store, and output data or information. Therefore, the correct option is "mechanical components of the computer."
Question 26 Report
Which of the following are Personal Accounts? i. wages ii. debtors ii. creditors iv. buildings
Answer Details
Personal accounts are accounts that represent individuals, organizations, or groups. Based on this definition, wages and buildings are not personal accounts as they do not represent individuals or organizations. On the other hand, debtors and creditors are personal accounts as they represent individuals and organizations with whom the business has financial transactions. Therefore, the correct answer is option (ii) and (iii) only.
Question 27 Report
In the balance sheet, the balance on the provision for Depreciation Account shown as
Answer Details
In the balance sheet, the balance on the provision for Depreciation Account is shown as a deduction from fixed assets. The provision for depreciation is the estimated amount set aside to be deducted from the original cost of the asset in order to calculate its net book value or carrying value. The net book value of an asset is the difference between its original cost and the accumulated depreciation charged against it. Since the provision for depreciation is a contra account to fixed assets, it is shown as a deduction from fixed assets in the balance sheet.
Question 28 Report
Which of the following is a self-balancing account?
Question 29 Report
Use the following information to answer the given question
\(\begin{array}{c|c} & D\\ \hline \text{Purchase of raw materials} & 236,500\\ \text{Returns of raw materials} & 4,750\\ \text{Carriage on raw materials} & 44,000\\ \text{Stock of raw materials at close} & 39,500 \\ \text{Factory fuel} & 3150,000\\ \text{Direct wages} & 205,000\\ \text{Indirect wages} & 31, 250\\ \text{Factory power} & 105,000\\ \text{Work-in-progress at start} & 32,500\end{array}\)
The total factory overhead is
Answer Details
Question 30 Report
Abu, a debtor to Dania, owed ₦10,500 at the start of the month. He paid cash of ₦40,005 during the month and received additional credit sales of ₦20,000.Using the information, In Dania's books, to record the payment of ₦30,505 cr.40,005 by Abu
Answer Details
Question 31 Report
Which of the following is not part of the cost of production
Answer Details
Advertising is not part of the cost of production. Cost of production refers to the cost incurred in the process of manufacturing or producing goods or services. It includes expenses such as wages of operators, factory power, cost of raw materials, and other costs directly associated with the production process. Advertising, on the other hand, is a promotional activity that aims to create awareness and generate demand for products or services. It is an indirect cost that is not directly related to the production process and hence not considered as part of the cost of production.
Question 32 Report
Programs installed in computers to facilitate processing of data are
Answer Details
Programs installed in computers to facilitate processing of data are called software. Software refers to the set of instructions or programs that run on a computer system, allowing the computer to perform specific tasks or functions. Examples of software include operating systems, applications, utilities, and games. Unlike hardware, which consists of physical components that can be touched, software is intangible and can be stored on a variety of media, such as hard drives, CDs, DVDs, and flash drives.
Question 33 Report
Use the following information to answer the given question
\(\begin{array}{c|c} & D\\ \hline \text{Purchase of raw materials} & 236,500\\ \text{Returns of raw materials} & 4,750\\ \text{Carriage on raw materials} & 44,000\\ \text{Stock of raw materials at close} & 39,500 \\ \text{Factory fuel} & 150,000\\ \text{Direct wages} & 205,000\\ \text{Indirect wages} & 31, 250\\ \text{Factory power} & 3105,000\\ \text{Work-in-progress at start} & 32,500\end{array}\)
What is the prime cost???
Answer Details
Question 34 Report
Subscription prepared by members is recorded in the balance sheet of a club as a
Answer Details
Subscription prepared by members is recorded in the balance sheet of a club as a current liability. A current liability is a financial obligation that a company or organization is obligated to pay off within a year or an operating cycle, whichever is longer. Subscription prepared by members represents the amount of money that the club members have paid in advance for future services or events. As these services or events will be provided in the future, the subscription is recorded as a liability because the club is yet to fulfill its obligation to the members. Hence, subscription prepared by members is shown on the liability side of the club's balance sheet until the services or events are provided, at which point it will be recognized as revenue.
Question 35 Report
Cost of extension to a factory building is classified as
Answer Details
The cost of extension to a factory building is classified as capital expenditure. Capital expenditure refers to the expenditure incurred by a company for acquiring, improving, or maintaining its fixed assets such as land, building, machinery, etc. The cost of extending a factory building is an expense that results in a long-term benefit to the company, and therefore it is treated as a capital expenditure. Capital expenditure is usually recorded on the balance sheet and depreciated over time.
Question 36 Report
Rent is apportioned each department on the basis of
Answer Details
Rent can be apportioned to different departments in a business based on different methods. However, the most common method used to apportion rent is based on the area or space occupied by each department. In this method, the total rent payable is divided by the total area of the building and then multiplied by the area occupied by each department. This gives the amount of rent that each department should be charged based on the space they occupy. This method ensures that each department pays a fair share of the rent based on the amount of space they use, and it is a simple and objective way to apportion rent.
Question 37 Report
The authority of the Accountant-General to disburse from government fund is
Answer Details
The authority of the Accountant-General to disburse from government fund is a "warrant." A warrant is an official document issued by the appropriate authority (in this case, the Accountant-General) to authorize the release of funds from the government treasury for a specific purpose. It serves as a legal authority for the Accountant-General to disburse money from the government fund to the appropriate party.
Question 38 Report
The authorized capital of city entertainment company is made up of 200,000 2\(\frac{1}{2}\)% preference shares of Le 60 each and 300,000 ordinary shares have been issued at Le 30 each and fully paid. All the preference dividend and recommended ordinary divided Le 0.10 per share. Using the following information, What is the amount of the share premium?
Answer Details
Question 39 Report
Which of the following does not appear in a bank statement?
Question 40 Report
Which of the following is found in a Sales Ledger Account?
Question 41 Report
The authorized capital of city entertainment company is made up of 200,000 2\(\frac{1}{2}\)% preference shares of Le 60 each and 300,000 ordinary shares have been issued at Le 30 each and fully paid. All the preference dividend and recommended ordinary divided Le 0.10 per share. Using the following information, what is the amount of preference dividend and recommended ordinary divided of Le 0.10 per share
Answer Details
Question 42 Report
The depreciation on plant acquired by a manufacturing company is treated as
Answer Details
The depreciation on plant acquired by a manufacturing company is treated as factory overhead. Depreciation is the gradual decrease in the value of an asset due to wear and tear, aging, and obsolescence over time. In a manufacturing company, the plant is a major asset that is used in the production process. The depreciation on plant is a cost that is incurred in the production of goods and is therefore treated as a factory overhead cost. This cost is allocated to the cost of goods sold and ultimately impacts the profitability of the manufacturing company.
Question 43 Report
A motor car costing D100,000 was depreciated at 20% per annum by the diminishing balance method. Two years later, it was sold for D60,000. Using the information, the net book value at the time of sales is
Answer Details
Question 45 Report
Which of the following is not part of factory overhead?
Answer Details
The term "factory overhead" refers to all indirect costs incurred in the manufacturing process that are not directly traceable to a particular product. These costs are necessary for the production process, but cannot be directly attributed to a single product unit. Examples of factory overhead include factory salaries, factory lighting and heating, and depreciation of plant and machinery. Depreciation of furniture and fixtures, on the other hand, is not typically included in factory overhead as it is not related to the production process. Therefore, the answer is: depreciation of furniture and fixtures.
Question 47 Report
The purchase of a typewriter for office use for ₦2,000 is debited to
Answer Details
The purchase of a typewriter for office use for ₦2,000 should be debited to the equipment account. This is because the typewriter is a type of fixed asset, and the equipment account is used to record the cost of fixed assets purchased by the company for use in its operations. The creditors account is used to record amounts owed to suppliers for goods or services purchased on credit, so it would not be appropriate to debit the typewriter purchase to this account. The bank account is used to record cash transactions, so it would not be appropriate to debit the typewriter purchase to this account unless the purchase was made with cash. The purchases account is used to record the cost of inventory purchased for resale, so it would not be appropriate to debit the typewriter purchase to this account unless the typewriter was purchased for resale.
Question 48 Report
Credit sales was debited to A. Akpan instead of B. Akpan. This is an error of
Answer Details
Question 49 Report
The reduction in value of an intangible asset is
Answer Details
The reduction in value of an intangible asset is called amortization. Intangible assets are assets that don't have a physical form, such as patents, trademarks, and copyrights. These assets have a limited useful life, and their value decreases over time due to wear and tear or obsolescence. Amortization is the process of spreading the cost of the intangible asset over its useful life, in a way that reflects its declining value. The purpose of amortization is to match the cost of the asset with the revenues it generates over time, so that the financial statements reflect a more accurate picture of the company's financial performance.
Question 50 Report
As a basis for assessing future usage, fixed assets are shown at
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