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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) Balance sheet
D) Ledger
  • 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) Intangible asset
B) Long-term liability
C) Current liability
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) Goods bought and sold
C) Debtors only
D) Assets and liabilities
  • 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) Government taxes
D) Short-term funds
  • 8. One reason for regulating the capital market is to ______.
A) Reduce salaries
B) Increase tax rates
C) Protect investors
D) Increase prices of goods
  • 9. The apex regulatory body of the Nigerian capital market is the___
A) Central Bank
B) SEC
C) NSE
D) Ministry of Finance
  • 10. SEC stands for ______.
A) Savings and Economic Council
B) Security Enforcement Centre
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) Buying shares
B) Reducing salaries
C) Hiring brokers
D) Investigation and enforcement
  • 13. The main function of the Nigeria Stock Exchange is to ______.
A) Manufacture currency
B) Facilitate buying and selling of securities
C) Train teachers
D) Prepare budgets
  • 14. The people who buy and sell securities on behalf of clients are called ______.
A) Traders
B) Jobbers
C) Managers
D) Brokers
  • 15. Hire purchase means buying goods and paying ______.
A) Immediately
B) By instalments
C) Through donations
D) After one year
  • 16. In hire purchase, the seller is known as the ______.
A) Consignor
B) Hirer
C) Consignee
D) Owner
  • 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) Hirer
C) Vendor
D) Consignee
  • 20. A person who receives goods for sale on behalf of the owner is called ______.
A) Trader
B) Seller
C) Consignee
D) Consignor
  • 21. Delcredere commission is given to the consignee to cover ______.
A) Rent
B) Bad debts
C) Transport
D) Salaries
  • 22. Joint venture is formed for ______.
A) Only partnerships
B) A short-term project
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) Temporary in nature
D) Joint control
  • 24. The account that shows combined transactions of joint venturers is the ______.
A) Purchases journal
B) Sales day book
C) Cashbook
D) Joint venture memorandum account
  • 25. Jobbers in the stock exchange are ______.
A) Government workers
B) Farmers
C) Lawyers
D) Market makers who trade on their own behalf
  • 26. Abuja Stock Exchange mainly deals in ______.
A) School supplies
B) Bank loans
C) Automobiles
D) Agricultural commodities
  • 27. Reserves in the appropriation account refer to ______.
A) Money kept for future use
B) Salaries
C) Bad debts
D) Money used to pay rent
  • 28. Bonus shares are issued to ______.
A) Government
B) Existing shareholders
C) Creditors
D) Customers
  • 29. A hire purchase agreement becomes complete when the ______.
A) Full payment is made
B) Seller agrees
C) Goods are delivered
D) Buyer signs the document
  • 30. Consignment profit is credited to the ______.
A) Consignee’s account
B) Purchases account
C) Consignor’s account
D) Balance sheet
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