1

The income accruing to debenture holders is called

A

dividend

B

net profit

C

shares

D

interest

CORRECT OPTION:
d

2

The amount by which assets exceed specific liabilities is called

A

reserve

B

provision

C

premium

D

bonus

CORRECT OPTION:
a

3

Which of the following has a debit balance at the end of the year?

A

rates prepaid account

B

bank loan account

C

income received in advance account

D

ordinary share capital account

CORRECT OPTION:
a

4

Which of the following is not an example of a fictitious asset?

A

Raw materials stock

B

debit balance of profit and loss account

C

preliminary expenses f a limited company

D

expenditure on incorporation carried forward

CORRECT OPTION:
a

5

Prime cost consist of

A

direct material and direct labour cost

B

direct material, direct labour and direct expenses

C

direct material, direct labour, direct expenses overhead

D

direct material and direct expenses

CORRECT OPTION:
b

6

Use the following information to answer the given question,

Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:

\(\begin{array}{c|c} & & & N \ \hline Dec. & 1 & \text{petty cash in hand} & 517 \ & 1 & \text{petty cash to imprest amount} & 3,483 \ & 6 & \text{Bought notebooks} & 328\ & 7 & \text{Paid wages} & 914\ & 14 & \text{Bought postage stamps} & 375 \ & 16 & \text{Paid to J. Thomas, a creditor} & 536 \ & 21 & \text{Paid wages} & 928 \ & 23 & \text{Bought envelopes} & 437 \ & 27 & \text{Bought postage stamps} & 210\end{array}\)

Amount to be posted to the personal ledger is

Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:

\(\begin{array}{c|c} & & & N \ \hline Dec. & 1 & \text{petty cash in hand} & 517 \ & 1 & \text{petty cash to imprest amount} & 3,483 \ & 6 & \text{Bought notebooks} & 328\ & 7 & \text{Paid wages} & 914\ & 14 & \text{Bought postage stamps} & 375 \ & 16 & \text{Paid to J. Thomas, a creditor} & 536 \ & 21 & \text{Paid wages} & 928 \ & 23 & \text{Bought envelopes} & 437 \ & 27 & \text{Bought postage stamps} & 210\end{array}\)

Amount to be posted to the personal ledger is

A

N765

B

N585

C

N536

D

N517

CORRECT OPTION:
c

7

Use the following information to answer the given question,

Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:

\(\begin{array}{c|c} & & & N \ \hline Dec. & 1 & \text{petty cash in hand} & 517 \ & 1 & \text{petty cash to imprest amount} & 3,483 \ & 6 & \text{Bought notebooks} & 328\ & 7 & \text{Paid wages} & 914\ & 14 & \text{Bought postage stamps} & 375 \ & 16 & \text{Paid to J. Thomas, a creditor} & 536 \ & 21 & \text{Paid wages} & 928 \ & 23 & \text{Bought envelopes} & 437 \ & 27 & \text{Bought postage stamps} & 210\end{array}\)

Amount soent on stationery is

Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:

\(\begin{array}{c|c} & & & N \ \hline Dec. & 1 & \text{petty cash in hand} & 517 \ & 1 & \text{petty cash to imprest amount} & 3,483 \ & 6 & \text{Bought notebooks} & 328\ & 7 & \text{Paid wages} & 914\ & 14 & \text{Bought postage stamps} & 375 \ & 16 & \text{Paid to J. Thomas, a creditor} & 536 \ & 21 & \text{Paid wages} & 928 \ & 23 & \text{Bought envelopes} & 437 \ & 27 & \text{Bought postage stamps} & 210\end{array}\)

Amount soent on stationery is

A

N765

B

N585

C

N538

D

N437

CORRECT OPTION:
a

8

Use the following information to answer the given question,

Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:

\(\begin{array}{c|c} & & & N \ \hline Dec. & 1 & \text{petty cash in hand} & 517 \ & 1 & \text{petty cash to imprest amount} & 3,483 \ & 6 & \text{Bought notebooks} & 328\ & 7 & \text{Paid wages} & 914\ & 14 & \text{Bought postage stamps} & 375 \ & 16 & \text{Paid to J. Thomas, a creditor} & 536 \ & 21 & \text{Paid wages} & 928 \ & 23 & \text{Bought envelopes} & 437 \ & 27 & \text{Bought postage stamps} & 210\end{array}\)

Amount to be reimbursed at the end of the month is

Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:

\(\begin{array}{c|c} & & & N \ \hline Dec. & 1 & \text{petty cash in hand} & 517 \ & 1 & \text{petty cash to imprest amount} & 3,483 \ & 6 & \text{Bought notebooks} & 328\ & 7 & \text{Paid wages} & 914\ & 14 & \text{Bought postage stamps} & 375 \ & 16 & \text{Paid to J. Thomas, a creditor} & 536 \ & 21 & \text{Paid wages} & 928 \ & 23 & \text{Bought envelopes} & 437 \ & 27 & \text{Bought postage stamps} & 210\end{array}\)

Amount to be reimbursed at the end of the month is

A

N4,000

B

N3,728

C

N3,483

D

N1,842

CORRECT OPTION:
b

9

Which of the following explains the short term solvency of a company?

A

acid test ratio

B

debtor to equity ratio

C

net profit margin ratio

D

gross profit margin ratio

CORRECT OPTION:
a

10

Which of the following is a fictitious asset?

A

overdraftt

B

cash in hand

C

reserves

D

preliminary expenses

CORRECT OPTION:
d

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