FINANCIAL ACCOUNTING SS 3 SECOND TERM EXAMINATION

FINANCIAL ACCOUNTING – SS 3

When a company can sue in its own name and right, we say it possesses (a)legal entity. (b) legal jargons. (c) legal portfolio. (d) legal value.
The company whose liabilities of its owners are limited to the value of share bought to the company is called company _________. (a) limited by share (b) limited by guarantee (c) unlimited by share (d) limited by decree

The amount of capital a company is allowed to raise in the capital market is ________. (a) authorized capital (b) issue capital (c) called up capital (d)in – issued capital
The name of private limited company ends with _____. (a)Ltd (b)Plc (c)&co (d) Enterprise
The name of public limited company ends with ____ (a) corporation (b)Ltd (c)Plc (d) authority

Which of the following is not a major account kept by companies? (a) Trading, profit and loss account. (b) Appropriation account. (c) Balance sheet. (d)None of the above.
The document which interacts the company with outside world is called _______. (a) Articles of Association (b) Memorandum of Association (c) Prospection (d) Certificate of incorporation
_________ is the document issued by limited companies, inviting the public to subscribe to it shares. (a) Prospectus (b) Certificate of incorporation (c) Articles of Association (d) Memorandum of Association

Certificate of ___________ is a document which gives a legal authority to the company to operate as a legal entity. (a) operation (b) incorporation (c) certification (d) association
The document which states the internal regulations of limited companies is called _______. (a) Articles (b) Association (c) Prospectus (d) Certificate of incorporation
Companies whose owners liabilities is limited to the value of share subscribed in the company in case of liquidation is referred to as ________. (a) company limited by share (b) company limited by guarantee (c) unlimited company (d) limited company

Capital employed is ________. (a) total assets – current liabilities (b) total assets – total liabilities. (c)total liabilities + all assets. (d) current assets + current liabilities
_________ refers to the long term borrowing and lending of capital funds. (a) Money market (b) Capital market (c) Commodity market (d)Share
__________ is the alternative name of debentures. (a) Capital employed (b) Loan capital (c) Capital reserve (d) Working capital

The person that sends goods to another person for the purpose of selling it is (a) collector. (b)consigner. (c) consignee. (d) all of the above.
The person who received the goods on behalf of another is __________. (a) consigner (b) collector (c) consigner (d)del- credere
In consignment account, advertisement is _________. (a) revenue (b) expenses (c) income (d) none of the above

The major accounts in joint venture are _________. (a) individual joint venture account and Memorandum. (b) profit and loss account and balance sheet. (c) Appropriation account and balance sheet. (d)cash book and ledger
In memorandum joint venture account revenue is _________. (a)debited (b)credited (c) averted (c) included
The parties to the hire purchase agreement are (a)hirer or buyer. (b)dealer. (c)finance company. (d)all of the above.

THEORY

Attempt all questions

1a. Define capital market.

2a. What is a company?

Mention three (3) types of companies.
State the three (3) major accounts kept by a company.
A motor vehicle bought for #16,000 was estimated to have a usual life span of 4 years and a scrap value of #2,000.

a, What’s the net book value of the motor vehicle at the end of the third year, using the straight line method?

b, Using the straight line method, what is the amount of depreciation charged per annum?

c, If the vehicle is sold out for #6,000 at the end of the third year, what is the profit or loss on sale?

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