SS3 Account
  • 1. The financial statement that shows a company’s profit for the year is called the:
A) Balance sheet
B) Ledger
C) Cash book
D) Income statement
  • 2. Which of the following is an item in the appropriation account?
A) Trade debtors
B) Goodwill
C) Cost of sales
D) Preference dividend
  • 3. Goodwill is classified as a _______.
A) Current asset
B) Current liability
C) Intangible asset
D) Long-term liability
  • 4. Preliminary expenses are usually written off against _______.
A) Fixed assets
B) Share capital
C) Debtors
D) Reserves
  • 5. A company balance sheet shows ______.
A) Debtors only
B) Income and expenses
C) Assets and liabilities
D) Goods bought and sold
  • 6. Vertical format of balance sheet arranges items ______.
A) In alphabetical order
B) In T-shape
C) From top to bottom
D) Side by side
  • 7. Capital market deals mainly with ______.
A) Government taxes
B) Daily transactions
C) Long-term funds
D) Short-term funds
  • 8. One reason for regulating the capital market is to ______.
A) Increase tax rates
B) Increase prices of goods
C) Reduce salaries
D) Protect investors
  • 9. The apex regulatory body of the Nigerian capital market is the___
A) SEC
B) NSE
C) Central Bank
D) Ministry of Finance
  • 10. SEC stands for ______.
A) Securities and Exchange Commission
B) Security Enforcement Centre
C) Savings and Economic Council
D) Stock Exchange Commission
  • 11. One of the tools SEC uses to regulate the market is ______.
A) Farming
B) Distribution
C) Cooking
D) Surveillance
  • 12. Investors are protected by SEC mainly through ______.
A) Reducing salaries
B) Hiring brokers
C) Investigation and enforcement
D) Buying shares
  • 13. The main function of the Nigeria Stock Exchange is to ______.
A) Facilitate buying and selling of securities
B) Manufacture currency
C) Train teachers
D) Prepare budgets
  • 14. The people who buy and sell securities on behalf of clients are called ______.
A) Brokers
B) Traders
C) Jobbers
D) Managers
  • 15. Hire purchase means buying goods and paying ______.
A) After one year
B) Through donations
C) By instalments
D) Immediately
  • 16. In hire purchase, the seller is known as the ______.
A) Consignor
B) Consignee
C) Hirer
D) Owner
  • 17. The person who takes goods on hire purchase is called the ______.
A) Hirer
B) Vendor
C) Debtor
D) Consignee
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Interest account
B) Trial balance
C) Purchases journal
D) Cashbook
  • 19. A consignment is usually sent by the ______.
A) Hirer
B) Vendor
C) Consignee
D) Consignor
  • 20. A person who receives goods for sale on behalf of the owner is called ______.
A) Seller
B) Trader
C) Consignor
D) Consignee
  • 21. Delcredere commission is given to the consignee to cover ______.
A) Rent
B) Transport
C) Bad debts
D) Salaries
  • 22. Joint venture is formed for ______.
A) Making losses
B) Long-term business
C) Only partnerships
D) A short-term project
  • 23. Which of the following is NOT a feature of joint venture?
A) Partners share profits
B) Long-term relationship
C) Temporary in nature
D) Joint control
  • 24. The account that shows combined transactions of joint venturers is the ______.
A) Cashbook
B) Sales day book
C) Purchases journal
D) Joint venture memorandum account
  • 25. Jobbers in the stock exchange are ______.
A) Lawyers
B) Government workers
C) Market makers who trade on their own behalf
D) Farmers
  • 26. Abuja Stock Exchange mainly deals in ______.
A) Automobiles
B) School supplies
C) Agricultural commodities
D) Bank loans
  • 27. Reserves in the appropriation account refer to ______.
A) Salaries
B) Bad debts
C) Money kept for future use
D) Money used to pay rent
  • 28. Bonus shares are issued to ______.
A) Customers
B) Government
C) Creditors
D) Existing shareholders
  • 29. A hire purchase agreement becomes complete when the ______.
A) Goods are delivered
B) Buyer signs the document
C) Full payment is made
D) Seller agrees
  • 30. Consignment profit is credited to the ______.
A) Balance sheet
B) Consignor’s account
C) Purchases account
D) Consignee’s account
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