Accounts - Principles of Accounts Past Questions and Answers

In the trading and profit and loss account of a manufacturing organization, purchases is?

A Always the same amount as the total factory overhead cost
B Given separately
C Equivalent to the total cost of goods manufactured
D Always the same as the prime cost

Question 597:

Goods worth N50 000 were sent at different times from head office to the branch during the year.
By the end of the period, only N40 000 worth of goods had arrived at the branch. Which of the following is correct about the treatment of this transaction?

A Branch should debit goods received from head ofice with N50 000
B Head office should debit goods sent to branch account with N10 000
C Head office should debit goods sent to branch account with N50 000
D Branch should debit goods received from head office with N10 000

Question 598:

An accounting ratio that considers only quick assets to determine the short-term safety margin of a firm is the?

A Fixed assets ratio
B Capital gearing ratio
C Current assets ratio
D Acid test ratio

Question 599:

Use the information below to answer question .
A company's authorized share capital was one million ordinary shares at N1 each. Issued 80% of its shares at N1.10 per share. 70k was payable on application, 25k on allotment, 10k due on first call and the balance on second call.
What would be the total amount received on second call?

A N240 000
B N280 000
C N40 000
D N56 000

Question 600:

Use the information below to answer question
A company's authorized share capital was one million ordinary shares at N1 each. Issued 80% of its shares at N1.10 per share. 70k was payable on application, 25k on allotment, 10k due on first call and the balance on second call.
The total amount of money received on application was?

A N560 000
B N220 000
C N800 000
D N1000 000