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