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