SS3 Account
  • 1. The financial statement that shows a company’s profit for the year is called the:
A) Income statement
B) Ledger
C) Balance sheet
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 liability
B) Current asset
C) Long-term liability
D) Intangible asset
  • 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) Assets and liabilities
B) Debtors only
C) Goods bought and sold
D) Income and expenses
  • 6. Vertical format of balance sheet arranges items ______.
A) From top to bottom
B) In T-shape
C) In alphabetical order
D) Side by side
  • 7. Capital market deals mainly with ______.
A) Short-term funds
B) Long-term funds
C) Government taxes
D) Daily transactions
  • 8. One reason for regulating the capital market is to ______.
A) Increase prices of goods
B) Increase tax rates
C) Reduce salaries
D) Protect investors
  • 9. The apex regulatory body of the Nigerian capital market is the___
A) NSE
B) Central Bank
C) SEC
D) Ministry of Finance
  • 10. SEC stands for ______.
A) Security Enforcement Centre
B) Stock Exchange Commission
C) Securities and Exchange Commission
D) Savings and Economic Council
  • 11. One of the tools SEC uses to regulate the market is ______.
A) Cooking
B) Distribution
C) Surveillance
D) Farming
  • 12. Investors are protected by SEC mainly through ______.
A) Investigation and enforcement
B) Buying shares
C) Reducing salaries
D) Hiring brokers
  • 13. The main function of the Nigeria Stock Exchange is to ______.
A) Manufacture currency
B) Facilitate buying and selling of securities
C) Prepare budgets
D) Train teachers
  • 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) By instalments
B) Immediately
C) Through donations
D) After one year
  • 16. In hire purchase, the seller is known as the ______.
A) Consignee
B) Hirer
C) Owner
D) Consignor
  • 17. The person who takes goods on hire purchase is called the ______.
A) Debtor
B) Hirer
C) Consignee
D) Vendor
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Cashbook
B) Interest account
C) Purchases journal
D) Trial balance
  • 19. A consignment is usually sent by the ______.
A) Hirer
B) Consignee
C) Vendor
D) Consignor
  • 20. A person who receives goods for sale on behalf of the owner is called ______.
A) Trader
B) Consignee
C) Consignor
D) Seller
  • 21. Delcredere commission is given to the consignee to cover ______.
A) Rent
B) Salaries
C) Bad debts
D) Transport
  • 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) Joint control
C) Temporary in nature
D) Long-term relationship
  • 24. The account that shows combined transactions of joint venturers is the ______.
A) Joint venture memorandum account
B) Cashbook
C) Sales day book
D) Purchases journal
  • 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) Salaries
B) Money used to pay rent
C) Bad debts
D) Money kept for future use
  • 28. Bonus shares are issued to ______.
A) Existing shareholders
B) Creditors
C) Government
D) Customers
  • 29. A hire purchase agreement becomes complete when the ______.
A) Goods are delivered
B) Seller agrees
C) Buyer signs the document
D) Full payment is made
  • 30. Consignment profit is credited to the ______.
A) Consignor’s account
B) Balance sheet
C) Purchases account
D) Consignee’s account
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