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SS3 Account
Contributed by: Obalanlege
  • 1. The financial statement that shows a company’s profit for the year is called the:
A) Balance sheet
B) Income statement
C) Ledger
D) Cash book
  • 2. Which of the following is an item in the appropriation account?
A) Goodwill
B) Preference dividend
C) Cost of sales
D) Trade debtors
  • 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) Fixed assets
B) Debtors
C) Share capital
D) Reserves
  • 5. A company balance sheet shows ______.
A) Debtors only
B) Assets and liabilities
C) Income and expenses
D) Goods bought and sold
  • 6. Vertical format of balance sheet arranges items ______.
A) From top to bottom
B) In T-shape
C) Side by side
D) In alphabetical order
  • 7. Capital market deals mainly with ______.
A) Daily transactions
B) Short-term funds
C) Government taxes
D) Long-term funds
  • 8. One reason for regulating the capital market is to ______.
A) Increase tax rates
B) Reduce salaries
C) Protect investors
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) Security Enforcement Centre
B) Savings and Economic Council
C) Securities and Exchange Commission
D) Stock Exchange Commission
  • 11. One of the tools SEC uses to regulate the market is ______.
A) Surveillance
B) Farming
C) Cooking
D) Distribution
  • 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) Prepare budgets
C) Manufacture currency
D) Train teachers
  • 14. The people who buy and sell securities on behalf of clients are called ______.
A) Managers
B) Jobbers
C) Brokers
D) Traders
  • 15. Hire purchase means buying goods and paying ______.
A) By instalments
B) Immediately
C) After one year
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) Debtor
C) Consignee
D) Vendor
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Interest account
B) Purchases journal
C) Trial balance
D) Cashbook
  • 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) Trader
B) Consignee
C) Seller
D) Consignor
  • 21. Delcredere commission is given to the consignee to cover ______.
A) Salaries
B) Bad debts
C) Transport
D) Rent
  • 22. Joint venture is formed for ______.
A) Long-term business
B) Making losses
C) Only partnerships
D) A short-term project
  • 23. Which of the following is NOT a feature of joint venture?
A) Joint control
B) Long-term relationship
C) Temporary in nature
D) Partners share profits
  • 24. The account that shows combined transactions of joint venturers is the ______.
A) Joint venture memorandum account
B) Purchases journal
C) Cashbook
D) Sales day book
  • 25. Jobbers in the stock exchange are ______.
A) Farmers
B) Government workers
C) Market makers who trade on their own behalf
D) Lawyers
  • 26. Abuja Stock Exchange mainly deals in ______.
A) Bank loans
B) Automobiles
C) School supplies
D) Agricultural commodities
  • 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) Customers
B) Creditors
C) Existing shareholders
D) Government
  • 29. A hire purchase agreement becomes complete when the ______.
A) Buyer signs the document
B) Goods are delivered
C) Full payment is made
D) Seller agrees
  • 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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