Financial Past Questions And Answers
Where closing stock is undervalued, the effect is?
- A. an increase in gross profit
- B. a decrease in gross profit
- C. an increase in purchases
- D. a decrease in purchase
The expenditure on a good or services which is consumed either immediately or within a current accounting period is called
- A. fixed expenditure
- B. capital expenditure
- C. annual expenditure
- D. recurrent expenditure
The tier of government that uses financial memorandum
- A. Federal government
- B. state government
- C. local government
- D. municipal government
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. measures the value of investments of a company
- D. measures the financial leverage of a company
A company’s profit and loss account for a period is prepared by
- A) deducting total expenses from total revenues
- B) deducting total cash payments from total revenue
- C) deducting all outflows of funds from all inwards of funds
- D) balancing its receipts and payments
Use the information to answer this question.
..............ZEBRA PLC..............
.............Balance sheet as at 31st March, 2002
...............N...............N............N......
Capital......100,000...Fixed assets:
Current................Land &..................
Liabilities...........buildings..50,000......
Creditors........30000..Furniture..10,000....60,000
.......................Current..................
.......................Assets: .......
..................Stock .........30,000...........
..................Debtors.......30,000.............
..................Cash..........10,000......70,000..
.............130,000.........................130,000
The business was acquired on 1st April, 2002 at a purchase consideration of N120,000 by SOZ. All assets and liabilities were taken over except the cash to open the new firm's bank account additional N20,000 was paid into the bank.
The goodwill on purchase is
- A. N90,000
- B. N30,000
- C. N19,000
- D. N18,000
Credit purchases are always put at 150% of the total cash paid to suppliers
Calculate the closing balance of the ledger account
- A. N6 900
- B. N6400
- C. N5000
- D. N4000
Given: Applications were invited by the directors of Abiodun PLC for 500,000 ordinary shares of #1:00 each at #1:10 per share payable as follows; On application 46k On allotment 20k 1st Call 15k 2nd Call 19k How much is to be paid for application?
- A. #230,000
- B. #280,000
- C. #500,000
- D. #550,000
One major advantage of ledger is that it
- A. is a book of original entry
- B. is only accessible to share holders during liquidation
- C. removes the need for preparing a balance sheet after each transaction
- D. can be used by any type of business
An electrical retail company is due to report lower pre-Tax profits than the previous year. Management fear investor dissatisfaction. Which of the following measures before the year end could improve the draft profit figure?
- A) Delaying payment to creditors
- B) Postponement of an investment in new equipment
- C) A reduction in the provision for bad and doubtful debts
- D) A reduction in the proposed dividend for the year