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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) Balance sheet
C) Cash book
D) Income statement
  • 2. Which of the following is an item in the appropriation account?
A) Cost of sales
B) Preference dividend
C) Goodwill
D) Trade debtors
  • 3. Goodwill is classified as a _______.
A) Long-term liability
B) Current asset
C) Intangible asset
D) Current liability
  • 4. Preliminary expenses are usually written off against _______.
A) Reserves
B) Fixed assets
C) Share capital
D) Debtors
  • 5. A company balance sheet shows ______.
A) Debtors only
B) Income and expenses
C) Goods bought and sold
D) Assets and liabilities
  • 6. Vertical format of balance sheet arranges items ______.
A) In T-shape
B) Side by side
C) In alphabetical order
D) From top to bottom
  • 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 prices of goods
C) Protect investors
D) Increase tax rates
  • 9. The apex regulatory body of the Nigerian capital market is the___
A) NSE
B) SEC
C) Ministry of Finance
D) Central Bank
  • 10. SEC stands for ______.
A) Savings and Economic Council
B) Security Enforcement Centre
C) Stock Exchange Commission
D) Securities and Exchange Commission
  • 11. One of the tools SEC uses to regulate the market is ______.
A) Cooking
B) Surveillance
C) Distribution
D) Farming
  • 12. Investors are protected by SEC mainly through ______.
A) Hiring brokers
B) Buying shares
C) Investigation and enforcement
D) Reducing salaries
  • 13. The main function of the Nigeria Stock Exchange is to ______.
A) Train teachers
B) Prepare budgets
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) Managers
D) Traders
  • 15. Hire purchase means buying goods and paying ______.
A) After one year
B) Immediately
C) Through donations
D) By instalments
  • 16. In hire purchase, the seller is known as the ______.
A) Owner
B) Consignee
C) Consignor
D) Hirer
  • 17. The person who takes goods on hire purchase is called the ______.
A) Debtor
B) Vendor
C) Hirer
D) Consignee
  • 18. The interest charged in hire purchase is recorded in the ______.
A) Purchases journal
B) Interest account
C) Trial balance
D) Cashbook
  • 19. A consignment is usually sent by the ______.
A) Hirer
B) Consignee
C) Vendor
D) Consignor
  • 20. A person who receives goods for sale on behalf of the owner is called ______.
A) Consignee
B) Trader
C) Seller
D) Consignor
  • 21. Delcredere commission is given to the consignee to cover ______.
A) Rent
B) Transport
C) Bad debts
D) Salaries
  • 22. Joint venture is formed for ______.
A) Long-term business
B) Making losses
C) Only partnerships
D) A short-term project
  • 23. Which of the following is NOT a feature of joint venture?
A) Joint control
B) Partners share profits
C) Temporary in nature
D) Long-term relationship
  • 24. The account that shows combined transactions of joint venturers is the ______.
A) Cashbook
B) Sales day book
C) Purchases journal
D) Joint venture memorandum account
  • 25. Jobbers in the stock exchange are ______.
A) Market makers who trade on their own behalf
B) Farmers
C) Government workers
D) Lawyers
  • 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) Bad debts
B) Salaries
C) Money kept for future use
D) Money used to pay rent
  • 28. Bonus shares are issued to ______.
A) Customers
B) Existing shareholders
C) Government
D) Creditors
  • 29. A hire purchase agreement becomes complete when the ______.
A) Full payment is made
B) Buyer signs the document
C) Goods are delivered
D) Seller agrees
  • 30. Consignment profit is credited to the ______.
A) Consignor’s account
B) Purchases account
C) Consignee’s account
D) Balance sheet
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