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What is the correct entry in the head office books at the point of initial transfer of the goods?
ABranch stock account would be credited with
BBranch stock account would be debited with N12,000
CGoods sent to branch account would be debited with N10,800
DGoods sent to branch account would be credited with N12,000
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Question 1332
jamb1999
Use the information below to Answer questions 46 and 47.
Among Limited invoiced goods at a cost of N10,000 to its Ikeja branch at a marginal of 20%. The branch later returned goods worth N1,200 at invoice price to the head office.
The profit marginal should be?
Adebit to goods sent to branch account
Bdebit to branch stock adjustment account
Ccredit to branch adjustment account
Dcredit to branch stock adjustment account
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Question 1333
jamb1999
To record the transfer of stock from one department to another, the correct entry would be to debit?
Agoods outwards and credit goods inwards
Bmerchandise account and credit department stock account
Cdepartment transfering and credit department receivving
Ddepartment receiving and credit department transfering
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Question 1334
jamb1999
The best method of allocating expenses among departments is to?
Aallocate expenses to each department in proportion to the sales of that department
Bcharge against each department those costs which are within its control
Ccharge expenses against each department in proportion to the purchases of that department
Dallocate expenses to each section of the department in relation to the number of people
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Question 1335
jamb1999
Shares issued to a vendor in payment of business purchased would require a debit to?
Acash account and credit to share capital account
Bshare capital account and credit to vendor's account
Cvendor's account and credit to share capital account
Dshare capital account and credit to cash account
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Question 1336
jamb1999
Calls in advance are treated in the balance sheet as?
Acurrent asset
Bcurrent liability
Cfixed assets
Dfixed liability
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Question 1337
jamb1999
If a promoter pays a lawyer N5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit?
Apreliminary expenses, credit cash accounts
Bpromoter, credit creditors' accounts
Clawyer's credit cash accounts
Dcash , credit incorporation accounts
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Question 1338
jamb1999
Which of the following events increases a corporation's shareholders equity?
ADonation of shares out of the corporation's own stock to the corporation
BThe corporation's purchase of treasury stock
CShares of previously subscribed stock issue to subscribing stockholders
DA municipality donation of land to the corporation
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Question 1339
jamb1999
The market price per ordinary share of a corporation listed on the stock exchange is most closely related to its?
Aearning per share
Bredemption price per share
Cbook value per share
Dcall price per share
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Question 1340
jamb1999
If a sole proprietorship is purchased for cash, then?
Athe purchaser debits his business purchase account with the consideration he pays
Ball assets and liabilities must be bought
Cgoodwill results where value of assets
Dthe vendor debits his business purchase account with the considerstion he receives
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Question 1341
jamb1999
Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?
Athey will simply continue since there are no new members
Bthe partnership is formally ended and new company books opened
Cthe shares and all other items will be shared equally and not in their former ratios
Dcomputation of goodwill must be done as it is legally required
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Question 1342
jamb1999
When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?
Agoodwill account balance
Bcurrent account credit balance
Ccurrent account debit balance
Dprofit and loss credit balance
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Question 1343
jamb1999
As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?
AN7,500
BN9,000
CN12,500
DN20,000
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Question 1344
jamb1999
Goodwill can be valued in partnership when?
Aa partners make profits
Blarge losses are made
Ca partner retires
Da new branch is opened
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Question 1345
jamb1999
A credit balance on a receipt and payments account indicates that the non-profit making organization?
Ahad more revenues than expenses during the period
Bdid not owe much liabilities during the period
Creceived more cash than it paid out during the period
Dmade more cash payments than it received during the period
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Question 1346
jamb1999
Given:
Club N150
Cash sales N4,850
Club debtors at close N900
Cash received from debtors N550
What is the amount of club sales?
AN6,150
BN4,850
CN4,650
DN1,300
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Question 1347
jamb1999
Receipt and payments account of a non-profit making organization is principally a summary of the?
Abak entries
Bcash bok entries
Cexpenditure entries
Dbalance sheet entries
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Question 1348
jamb1999
The difference between the factory cost of production and the prime cost of production is?
Adirect materials
Bdirect labour
Cselling expenses
Doverhead
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Question 1349
jamb1999
Manufacturing costs can be classified based on?
Atiming of charges degree of averaging and size of capital
Bdegree of averaging, ease of traceability and timing of charges
Cdegree of averaging, size of floor space occupied and cost accounts
Dnumber of employees, timing of charges and management style
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Question 1350
jamb1999
Lawal and co makes blocks and sell to builders.
In computing prime cost, which of the following costs would be considered appropriate?
