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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) Income statement
B) Balance sheet
C) Cash book
D) Ledger
  • 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) Intangible asset
B) Current asset
C) Long-term liability
D) Current liability
  • 4. Preliminary expenses are usually written off against _______.
A) Fixed assets
B) Share capital
C) Reserves
D) Debtors
  • 5. A company balance sheet shows ______.
A) Income and expenses
B) Assets and liabilities
C) Debtors only
D) Goods bought and sold
  • 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) Long-term funds
B) Daily transactions
C) Short-term funds
D) Government taxes
  • 8. One reason for regulating the capital market is to ______.
A) Protect investors
B) Increase tax rates
C) Increase prices of goods
D) Reduce salaries
  • 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) Stock Exchange Commission
B) Security Enforcement Centre
C) Savings and Economic Council
D) Securities and 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) Investigation and enforcement
B) Hiring brokers
C) Reducing salaries
D) Buying shares
  • 13. The main function of the Nigeria Stock Exchange is to ______.
A) Manufacture currency
B) Prepare budgets
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) Jobbers
B) Managers
C) Brokers
D) Traders
  • 15. Hire purchase means buying goods and paying ______.
A) Through donations
B) By instalments
C) Immediately
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) Vendor
B) Debtor
C) Consignee
D) Hirer
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Purchases journal
B) Cashbook
C) Trial balance
D) Interest account
  • 19. A consignment is usually sent by the ______.
A) Consignor
B) Vendor
C) Consignee
D) Hirer
  • 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) Bad debts
B) Rent
C) Transport
D) Salaries
  • 22. Joint venture is formed for ______.
A) Only partnerships
B) Long-term business
C) A short-term project
D) Making losses
  • 23. Which of the following is NOT a feature of joint venture?
A) Temporary in nature
B) Long-term relationship
C) Joint control
D) Partners share profits
  • 24. The account that shows combined transactions of joint venturers is the ______.
A) Purchases journal
B) Cashbook
C) Joint venture memorandum account
D) Sales day book
  • 25. Jobbers in the stock exchange are ______.
A) Government workers
B) Farmers
C) Market makers who trade on their own behalf
D) Lawyers
  • 26. Abuja Stock Exchange mainly deals in ______.
A) Bank loans
B) School supplies
C) Agricultural commodities
D) Automobiles
  • 27. Reserves in the appropriation account refer to ______.
A) Money used to pay rent
B) Salaries
C) Bad debts
D) Money kept for future use
  • 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) 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) Purchases account
C) Balance sheet
D) Consignee’s account
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