Accounting

One of the items listed below will not be found in a company’s memorandum and article of association. Which is it?

A. objects and their alteration B. location of business C. bank signatories D. powers of directors Correct Answer: Option C…

5 years ago

The following accounting entries are made when bad debt is recovered?

A. debit bad debts accounts and credit bad debt recovered account B. debit debtors accounts and recovered account C. debit…

5 years ago

Derive the stock turnover period. (Average stock = 23000. Cost of sales = 300000 year = 365 days).

A. 28 days B. 42 days C. 27 days D. 23 days Correct Answer: Option A - 28 days Explanation…

5 years ago

What does liquidity ratio measure?

A. measures operating efficiency of a company B. measures the ability of a company to meet its current obligations. C.…

5 years ago

The accounting convention that state that; stock should be value that the lower of cost and net realized value is _______ convention?

A. marching B. consistency C. realization D. prudency Correct Answer: Option D - prudency Explanation Prudence Concept or Conservatism principle…

5 years ago

Which of the following is not a proper form of the accounting equation?

A. fixed assets + current assets - liabilities = capital B. fixed assests + current assests + liabilities = capital…

5 years ago

In a bank reconciliation statement; Dishonoured cheques is added to?

A. unpresented cheques B. uncredited cheques C. statement of account D. aggregate balance as per cash book Correct Answer: Option…

5 years ago

The ledger entries to be made if cash sales is banked is debit?

A. cash, credit sales B. sales, credit cash C. bank, credit cash D. bank, credit sales Correct Answer: Option D…

5 years ago

The amount brought down in the sales ledger control account would be?

CR. DR. Sales ledger balance 9, 500 Sales ledger balance 420 Bought ledgers balance 6, 115 Bought ledger balance 350…

5 years ago

Using LIFO method of stock valuation; analyze the issue quantities and their prices?

A. 260 units at N1.50 B. 700 units at N1.50 C. 200 units at N1.50 and 500 units at N1.00…

5 years ago