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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) Cash book
B) Income statement
C) Ledger
D) Balance sheet
  • 2. Which of the following is an item in the appropriation account?
A) Goodwill
B) Trade debtors
C) Preference dividend
D) Cost of sales
  • 3. Goodwill is classified as a _______.
A) Long-term liability
B) Current asset
C) Current liability
D) Intangible asset
  • 4. Preliminary expenses are usually written off against _______.
A) Debtors
B) Reserves
C) Fixed assets
D) Share capital
  • 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) Long-term funds
B) Daily transactions
C) Government taxes
D) Short-term funds
  • 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) SEC
C) Central Bank
D) Ministry of Finance
  • 10. SEC stands for ______.
A) Security Enforcement Centre
B) Securities and Exchange Commission
C) Savings and Economic Council
D) Stock Exchange Commission
  • 11. One of the tools SEC uses to regulate the market is ______.
A) Distribution
B) Surveillance
C) Cooking
D) Farming
  • 12. Investors are protected by SEC mainly through ______.
A) Reducing salaries
B) Hiring brokers
C) Buying shares
D) Investigation and enforcement
  • 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) Brokers
B) Jobbers
C) Managers
D) Traders
  • 15. Hire purchase means buying goods and paying ______.
A) Through donations
B) Immediately
C) By instalments
D) After one year
  • 16. In hire purchase, the seller is known as the ______.
A) Hirer
B) Consignee
C) Consignor
D) Owner
  • 17. The person who takes goods on hire purchase is called the ______.
A) Consignee
B) Hirer
C) Vendor
D) Debtor
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Cashbook
B) Trial balance
C) Purchases journal
D) Interest account
  • 19. A consignment is usually sent by the ______.
A) Vendor
B) Hirer
C) Consignee
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) Salaries
B) Transport
C) Rent
D) Bad debts
  • 22. Joint venture is formed for ______.
A) A short-term project
B) Only partnerships
C) Long-term business
D) Making losses
  • 23. Which of the following is NOT a feature of joint venture?
A) Long-term relationship
B) Partners share profits
C) Joint control
D) Temporary in nature
  • 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) Farmers
B) Market makers who trade on their own behalf
C) Lawyers
D) Government workers
  • 26. Abuja Stock Exchange mainly deals in ______.
A) Agricultural commodities
B) School supplies
C) Bank loans
D) Automobiles
  • 27. Reserves in the appropriation account refer to ______.
A) Bad debts
B) Money used to pay rent
C) Salaries
D) Money kept for future use
  • 28. Bonus shares are issued to ______.
A) Existing shareholders
B) Customers
C) Government
D) Creditors
  • 29. A hire purchase agreement becomes complete when the ______.
A) Seller agrees
B) Full payment is made
C) Goods are delivered
D) Buyer signs the document
  • 30. Consignment profit is credited to the ______.
A) Consignee’s account
B) Consignor’s account
C) Balance sheet
D) Purchases account
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