Ss 3 Financial Accounting Exams 3rd term

SECTION A

Goodwill is a ——- (a) current asset ( b) intangible asset( c) current liability( d)fictitious asset
Vendor means the seller of the (a) business (b) asset (c) liabilities (d) capital
Capital reserve is( a) current assets( b) fixed assets (c) liabilities (d) equity
The double entry for payment of cheque to vendor is (a) Dr. vendor A/C, Cr. bank (b) Cr. Vendor,Dr. bank (c) Cr.cheque Dr. vendor (d) Dr. Vendor Cr. Cash
Which of the following formulae is for average stock?( a) (sales – returns)1/2 ( b) (opening stock + purchases)1/2 (c) (opening stock + closing stock)÷ 2 (d) net profit/2 + opening stock
What is the formula for stock turnover?

average stock inwards

7. ROCE is calculated thus

(a) NP × 100 (b) SALES × 100 ( c) NP × 100 (d) GP + NP/SALES

SALES PURCHASES NET ASSETS

8. Acid – test ratio is obtained by (a) current assets – stock ( b) total assets – stock

current liabilities current liability

Public sector accounting is done on ————-basis (a)credit (b)cash (c)hire purchase (d)installmental payment
Government parastatal accounting system is on ————-basis (a)cash (b)accrual (c)General (d)all of the above
Public sector accounts reports are to the ————-(a)shareholders (b)directors (c)public (d)customers
The chief accounting officer to the government ministries is (a)auditor general (b)minister of finance (c)secretary to the federal government (d)accountant general of the federation
If the cost of goods is N10,000 and there is a 25% mark-up on it, then the selling price is ———-(a)N10,000 (b)N10,200 (c)N12,500 (d)N13,500
If the cost of an article is N500 the company’s profit margin is 20% then the selling price is ———-(a)N6250 (b)5000 (c)72250 (d)6000
If the margin allowed by a business is 25% then the business mark-up is ———-(a)20% (b)30% (c)311% (d)50%
If the profit on cost price is 1/5 then the profit on selling price is ———-(a)1/2 (b)1/3 (c)5% (d)1/4 (e)1/6
In branch accounting, the entries for bad debt written off are:
1. Dr. Branch stock A/C Cr. Debtors A/C
2. Cr. Bank A/C Dr. debtors A/C
3. Cr. Debtors A/C, Dr. branch P&L Mc to branch A/C
If the margin of a trader is 30% than the mark-up of the trader is

(a)25% (b)33% (c)40% (d)43%

The balancing figure in the goods sent to branch A/C is (a)transfer to branch debtors A/C (b)credit to branch stock A/C (c)transfer to branch P&L A/C (d)transfer to head office trading A/C
A branch sold goods on credit for N5000. The accounting entries are debt branch debtors A/C N5000 and credit.

(a) goods sent to branch A/C N5000 (b)branch stock adjustment A/C N5000 (c)branch stock A/C N5000 (d)branch profit & loss A/C N5000

The fourth stage of the accounting information system is ____________(a) recording (b) interpreting (c) summarizing (d) classifying
In the permanent storage device, DASD means________ (a) Direct Access Systems Device (b) Direct Access Storage Device (c) Data Access System Device (d) Data Access Storage Device
The input output and central processing units are the basic components of a computers _____

(a) memory (b) software (c) printer (d) skill

The computer that functions by taking discrete numbers and performing mathematical calculation is called ______(a) mainframe (b) digital (c) hybrid analogue

SECTION B

State four reasons why some firms still use manual data processing instead of electronic data processing.
What purpose does each of the following serve?
1. Branch stock A/C
2. Branch stock adjustment A/C
3. Goods sent to branch A/C
Fill the following gaps

Mark-up Margin

If i. 10% i. Then ———-?

ii. ———-? ii. If 30%

iii. 3/7 iii. Then———-?

State the formula to apply for (i) calculating emolument when employees are step 1 and (ii) when employees are on step 3
Explain a) debtors /sales ratio b) creditors/purchases ratio
What will be revealed to a business when the above ratios are compared?
Explain the accounting entries in purchase of a business by a partnership from a sole trader.
Explain i. Capital reserve ii. Goodwill on purchase of a business