21. A sale should be recognised when the goods or services have been provided and the invoice
sent out, rather than when the sale is agreed. Which accounting concept does this illustrate?
A. Realization concept.
B. Consistency concept.
C. Going concern concept.
D. Materiality concept.
22. The account in which each partner’s contribution is recorded and kept is called _____ Account.
D. Contribution account
23. Which of the following is shown in the statement of comprehensive income of a company?
A. Premium on issue of shares.
B. Proceeds from issue of shares.
C. Auditor’s remuneration.
D. Proposed dividend.
24. If the accrued wages of a business, amounting to N1,800, is not recorded, then
A. The profit will be overstated by N1,800 and liability understated by N1,800.
B. The profit will be understated by N1,800 and liabilities understated by N1,800.
C. The two sides of the Trial Balance will differ by N1,800.
D. The profit will be overstated by N1,800 and the cash balance will also be overstated by
25. The responsibilities of the directors in relation to the accounting functions of the company fall
under the following headings, EXCEPT
A. Safe-guarding the company’s assets and preventing errors and fraud in the company.
B. Defining the concepts of materiality and tolerable errors for the auditor.
C. Ensuring that the company keeps proper accounting records, as defined in legislation.
D. Setting up an internal control system in the company.
26. The removal of an auditor before the expiration of his/her term requires a special resolution and a
A. 14 days.
B. 21 days.
C. 28 days.
D. 30 days.
27. Which of these is NOT true about the removal of an auditor?
A. Notice of intention to remove auditor must be sent to the auditor
B. CAC must be notified within 14 days of removal of company’s auditor
C. The auditor has the right to send representations to members who receive notice of AGM
D. The auditor can only be removed when he/she has completed his/her tenure.
28. The common name given to Statement of Comprehensive Income and Statement of Financial
A. Prime accounts.
B. Final accounts.
C. Closing accounts.
D. End-of-the-year account.
29. N50 cash taken from the cash till and banked is posted as follow:
A. Debit Cash N50 and Credit Bank N50
B. Debit Bank N50 and Credit Cash N50
C. Debit Cash N50 and Credit Cash N50
D. Debit Bank N50 and Credit Bank N50
30. In cost accounting, the total of direct labour cost, direct material cost and direct expense is
referred to as
A. Factory cost .
B. Total cost.
C. Prime cost.
D. Selling cost.