Accounting

What is the capital?

Given: ₦ Fixed assets 55,000 Liabilities 20,000 Current assets  13,000   A. ₦88,000 B. ₦48,000 C. ₦62,000 D. ₦55,000 Correct…

6 years ago

Capital at the start was ₦250,000, while capital at the end of the year was ₦400,000. Drawings during the year amounted to ₦15,000. What is profit?

A. ₦165,000 B. ₦635,000 C. ₦600,000 D. ₦156,000 Correct Answer: Option A A. ₦165,000 Explanation Using the formular AC +…

6 years ago

An officer that is charged with the responsibility of carrying out investigations on the book of accounts to show the true and fair view is?

A. Ministry of Finance B. Accountant General C. Revenue office D. Auditor General Correct Answer: Option D D. Auditor General…

6 years ago

A machine cost ₦12,500 will be kept for 4 years and then sold at a scrap value of ₦5,120. Using the diminishing balance method, what is the amount of depreciation for the second year?

A. ₦5,120 B. ₦6,400 C. ₦8,000 D. ₦12,500 Correct Answer: Option C C. ₦8,000

6 years ago

The method of stock valuation in which the issue price is obtained by dividing the value of stock in hand by unit of stock in hand is?

A. FIFO B. LIFO C. SAP D. WAP Correct Answer: Option D D. WAP Explanation Weighted Average Price (WAP): Under…

6 years ago

Every economic unit, regardless of its legal form of existence, is treated as a separate entity from parties having economic interest is?

A. realization concept B. entity concept C. going concern concept D. matching concept Correct Answer: Option B B. entity concept…

6 years ago

The cost of a machine is ₦10,000. The residual value is ₦4,000. It is expected to last for 4 years. Using the straight-line method, what is the amount of depreciation charged per annum?

A. 6000 B. 1000 C. 1500 D. 2500 Correct Answer: Option C C. 1500 Explanation The formula to be adopted…

6 years ago

A fall or decrease in the economic service potential of an asset as a result of wear, tear and obsolescence is referred to as?

A. Estimate B. Depreciation C. Asset D. Useful Life Correct Answer: Option B B. Depreciation Explanation Depreciation is the reduction…

6 years ago

Goods were purchased for resale on credit costing ₦150,000 on 30th September 2018 from Tosanwumi International. The entry to record this transaction is debit?

A. Tosanwumi International, credit purchase Account B. Purchase Account ₦150,000, credit Tosanwumi International Account ₦150,000 C. Credit Account ₦150,000, Credit…

6 years ago

A statement in a double entry system in which are recorded all the transactions of one specific class, which takes place during the period is called?

A. Double entry system B. Ledger C. Cash Book D. Petty Cash Book Correct Answer: Option B B. Ledger Explanation…

6 years ago
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