Accounts - Principles of Accounts Past Questions and Answers

A non-profit-making organization differs from a profit-making one in that?

A It does not earn income
B Proceeds from sale of shares form part of its income
C All its income is committed
D Annual subscriptions and levies form part of its income

Question 32:

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

A I and ii only
B I, ii and iii only
C I, iii and iv only
D Ii, iii and iv only

Question 33:

When forming a partnership, new partners should record non-monetary assets on the new partnership's books at?

A Their current fair market values
B Their historical costs when first use
C Their historical costs when first purchase by each new partner
D The highest values practical so that future income tax deductions are maximized

Question 34:

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?

A N33,333
B N40,000
C N44,444
D N50,000

Question 35:

Which of the following is an intangible asset and a measure of a firm's superior earning power?

A Patent
B Goodwill
C Trademark
D Right issue