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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) Ledger
B) Cash book
C) Income statement
D) Balance sheet
  • 2. Which of the following is an item in the appropriation account?
A) Goodwill
B) Preference dividend
C) Trade debtors
D) Cost of sales
  • 3. Goodwill is classified as a _______.
A) Long-term liability
B) Current liability
C) Intangible asset
D) Current asset
  • 4. Preliminary expenses are usually written off against _______.
A) Reserves
B) Share capital
C) Fixed assets
D) Debtors
  • 5. A company balance sheet shows ______.
A) Income and expenses
B) Assets and liabilities
C) Goods bought and sold
D) Debtors only
  • 6. Vertical format of balance sheet arranges items ______.
A) In alphabetical order
B) From top to bottom
C) Side by side
D) In T-shape
  • 7. Capital market deals mainly with ______.
A) Government taxes
B) Short-term funds
C) Daily transactions
D) Long-term funds
  • 8. One reason for regulating the capital market is to ______.
A) Increase prices of goods
B) Increase tax rates
C) Protect investors
D) Reduce salaries
  • 9. The apex regulatory body of the Nigerian capital market is the___
A) NSE
B) Ministry of Finance
C) SEC
D) Central Bank
  • 10. SEC stands for ______.
A) Securities and Exchange Commission
B) Savings and Economic Council
C) Security Enforcement Centre
D) Stock Exchange Commission
  • 11. One of the tools SEC uses to regulate the market is ______.
A) Distribution
B) Farming
C) Cooking
D) Surveillance
  • 12. Investors are protected by SEC mainly through ______.
A) Hiring brokers
B) Buying shares
C) Reducing salaries
D) Investigation and enforcement
  • 13. The main function of the Nigeria Stock Exchange is to ______.
A) Train teachers
B) Manufacture currency
C) Facilitate buying and selling of securities
D) Prepare budgets
  • 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) After one year
B) Through donations
C) By instalments
D) Immediately
  • 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) Vendor
B) Debtor
C) Hirer
D) Consignee
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Cashbook
B) Trial balance
C) Interest account
D) Purchases journal
  • 19. A consignment is usually sent by the ______.
A) Vendor
B) Hirer
C) Consignor
D) Consignee
  • 20. A person who receives goods for sale on behalf of the owner is called ______.
A) Seller
B) Consignee
C) Trader
D) Consignor
  • 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) Making losses
B) A short-term project
C) Long-term business
D) Only partnerships
  • 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) Cashbook
B) Purchases journal
C) Sales day book
D) Joint venture memorandum account
  • 25. Jobbers in the stock exchange are ______.
A) Lawyers
B) Market makers who trade on their own behalf
C) Farmers
D) Government workers
  • 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 used to pay rent
B) Salaries
C) Money kept for future use
D) Bad debts
  • 28. Bonus shares are issued to ______.
A) Creditors
B) Government
C) Existing shareholders
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) Consignee’s account
C) Consignor’s account
D) Balance sheet
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