Study and practice Accounting past questions with answers and detailed explanations. Then test your knowledge using our interactive CBT practice platform and prepare confidently for your upcoming examinations.
If a monthly insurance premium is remitted to a company by the state government, the initial deductions from employees are recorded in?
Athe general fund
Bagency fund
Cspecial fund
Dgeneral long-term fund
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Question 2
jamb1998
Money not required to meet chargeable expenditure in any fiscal year under cash accounting, should be?
Asurrendered to the consolidated revenue fund
Bcarried forward to the next financial year
Creserved to meetany deficits or contingencies
Dreturned to the taxpayer
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Question 3
jamb1998
In a public corporation, the capital expenditure incurred in a financial period is?
Aspread over the useful life of the assets through depreciation
Bapportioned at a pre-determined rate stipulated by law
Cwritten off in the year in which they occur
Dmerged with recurrent expenditure and reported in one required lump sum
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Question 4
jamb1998
The term fiscal compliance means?
Aal financial and related laws and regulations are adhered to
Bonly the budget fir the current period is complied with and no deficits allowed
Call physical assets requirements have been met
Dfiscal planning is necessary for proper accountabilit in the public sector
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Question 5
jamb1998
The difference between the closure of the books of a branch and those of a separate company is that?
Athere is retained earnings account on the branch books
Bthe revenue and expenses account is closed to branch current account
Cthere is no retained earnings account on the branch
Dthe revenue and expenses account is not closed to the home office current account
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Question 6
jamb1998
Which of the following entries is effected by a department when goods are charged to it at selling prices?
Astock account is debited
Bpurchases account is debited
Cstock account is credited
Dmark-up account is debited
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Question 7
jamb1998
To compute gearing ratio, divide?
Aprofit by capital employed
Bcurrent assets by current liability
Cprofit by total assets
Dlong-term debts by equity capital
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Question 8
jamb1998
The part of equity which is payable on winding up is called?
Ageneral reserve
Brevenue reserve
Ccapital reserve
Dnormal reserve
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Question 9
jamb1998
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.
Ai, ii and iii only
Bi, ii and iv only
Ci, iii, and iv only
Dii, iii and iv only
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Question 10
jamb1998
Granada Corporation has net assets of N600,000 and contributed capital of N180,000. The corporation has 30,000 shares of common stock outstanding with no preferred stock. This suggest that the corporation has?
Aa book value of N14 per share
Ba book value of N20 per share
Ca deficit of N420,000
Dretained earnings of N600,000
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Question 11
jamb1998
The ordinary shareholders enjoy the following rights except the right to?
Avote at annual general meetings
Belect the board of directors
Cparticipate in additional issues of shares
Dreceive dividends at a preddetermined rate
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Question 12
jamb1998
Dan and Baker are in partnership with capitals of N50,000 and N30,000 each. The partnership agreement provides that: (i) profits be shared in the ratio of capital (ii) both partners earn interest on capital at 6% p.a (iv) both parents pay interest on drawings at 6% p.a. At the end of the year, Dan drew N15,000 while baker drew N14,000 in four installments on 31/3, 30\6, 30\9 and 30\12. The net profit for the year was N48,000. N5000 is to be written off the goodwill account.
Determine the total interest on capital due to the partners?
AN1200
BN1800
CN3000
DN4800
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Question 13
jamb1998
Use the information below to answer question 38 and 39.
Dan and Baker are in partnership with capital of N50,000 and N30,000 each. The partnership agreement provides that:(i) profits be shared in the ratio of capital. (ii) Baker be paid a salary of N8,000.
(iii) both partners earn interest on capital at 6% p.a.
(iv) both partners pay interest on drawing at 6% p.a.
At the end of the year, Dan drew N15,000 while Baker drew N14,000 in four installment on 31/3,30/6,30/9 and 31/12. The net profit for the year was N48,000. N5,000 is to be written off the Goodwill account.
What is the interest on the drawing by Baker?
AN210
BN315
CN450
DN840
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Question 14
jamb1998
The price paid by an acquiring company is the?
Apremium
Bpurchase consideration
Csales consideration
Dconversion fee
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Question 15
jamb1998
Which of the following is an intangible asset and a measure of a firm's superior earning power?
APatent
BGoodwill
CTrademark
DRight issue
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Question 16
jamb1998
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?
AN33,333
BN40,000
CN44,444
DN50,000
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Question 17
jamb1998
When forming a partnership, new partners should record non-monetary assets on the new partnership's books at?
Atheir current fair market values
Btheir historical costs when first use
Ctheir historical costs when first purchase by each new partner
Dthe highest values practical so that future income tax deductions are maximized
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Question 18
jamb1998
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
Ai and ii only
Bi, ii and iii only
Ci, iii and iv only
Dii, iii and iv only
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Question 19
jamb1998
A non-profit-making organization differs from a profit-making one in that?
Ait does not earn income
Bproceeds from sale of shares form part of its income
Call its income is committed
Dannual subscriptions and levies form part of its income
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Question 20
jamb1998
The trading account is to a sole trader what income and expenditure account is to a?
