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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) Balance sheet
D) Income statement
  • 2. Which of the following is an item in the appropriation account?
A) Preference dividend
B) Goodwill
C) Trade debtors
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) Share capital
B) Fixed assets
C) Debtors
D) Reserves
  • 5. A company balance sheet shows ______.
A) Goods bought and sold
B) Income and expenses
C) Debtors only
D) Assets and liabilities
  • 6. Vertical format of balance sheet arranges items ______.
A) In T-shape
B) Side by side
C) From top to bottom
D) In alphabetical order
  • 7. Capital market deals mainly with ______.
A) Government taxes
B) Daily transactions
C) Long-term funds
D) Short-term funds
  • 8. One reason for regulating the capital market is to ______.
A) Reduce salaries
B) Increase tax rates
C) Increase prices of goods
D) Protect investors
  • 9. The apex regulatory body of the Nigerian capital market is the___
A) NSE
B) Ministry of Finance
C) Central Bank
D) SEC
  • 10. SEC stands for ______.
A) Securities and Exchange Commission
B) Security Enforcement Centre
C) Stock Exchange Commission
D) Savings and Economic Council
  • 11. One of the tools SEC uses to regulate the market is ______.
A) Farming
B) Cooking
C) Surveillance
D) Distribution
  • 12. Investors are protected by SEC mainly through ______.
A) Hiring brokers
B) Reducing salaries
C) Investigation and enforcement
D) Buying shares
  • 13. The main function of the Nigeria Stock Exchange is to ______.
A) Prepare budgets
B) Train teachers
C) Manufacture currency
D) Facilitate buying and selling of securities
  • 14. The people who buy and sell securities on behalf of clients are called ______.
A) Jobbers
B) Brokers
C) Traders
D) Managers
  • 15. Hire purchase means buying goods and paying ______.
A) Immediately
B) After one year
C) By instalments
D) Through donations
  • 16. In hire purchase, the seller is known as the ______.
A) Hirer
B) Consignee
C) Owner
D) Consignor
  • 17. The person who takes goods on hire purchase is called the ______.
A) Consignee
B) Vendor
C) Hirer
D) Debtor
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Interest account
B) Trial balance
C) Cashbook
D) Purchases journal
  • 19. A consignment is usually sent by the ______.
A) Consignee
B) Hirer
C) Consignor
D) Vendor
  • 20. A person who receives goods for sale on behalf of the owner is called ______.
A) Consignee
B) Seller
C) Trader
D) Consignor
  • 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) A short-term project
B) Making losses
C) Long-term business
D) Only partnerships
  • 23. Which of the following is NOT a feature of joint venture?
A) Temporary in nature
B) Partners share profits
C) Long-term relationship
D) Joint control
  • 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) Government workers
B) Market makers who trade on their own behalf
C) Lawyers
D) Farmers
  • 26. Abuja Stock Exchange mainly deals in ______.
A) Bank loans
B) Agricultural commodities
C) Automobiles
D) School supplies
  • 27. Reserves in the appropriation account refer to ______.
A) Salaries
B) Money used to pay rent
C) Bad debts
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) Goods are delivered
B) Seller agrees
C) Buyer signs the document
D) Full payment is made
  • 30. Consignment profit is credited to the ______.
A) Purchases account
B) Consignor’s account
C) Consignee’s account
D) Balance sheet
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