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