ss2 accounting 2nd term exam

The objective of a trading account is to establish the

A)cost of goods sold

B)gross profit

C)manufacturing profit

D)net profit

The process of allocating the cost of an intangible asset over its useful life is known as

A)depreciation

B)extraction

C)depletion

D)amortization

The profit of a sole trader increases his ______.

A)stock

B)asset

C)liability

D)capital

The recording of wages due but not yet paid is an example of, an adjustment for

A)apportionment of revenue between two periods

B)recognizing accrued expenses

C)recognizing unaccounted revenue

D)recognizing prepaid expenses

The trial balance showed wages, ₦2,500 and a note stated that ₦500 wages were due but unpaid. When preparing final accounts and balance sheet, it is required to debit profit and loss account with

A)₦3,000 and show wages accrued ₦500 in the balance sheet

B)₦2,000 and show ages accrued ₦500 in the balanced sheet

C)₦3,000 and show wages prepaid ₦500 in the balance sheet

D)₦2,000 and show wages paid in advance ₦500 in the balance sheet

₦2,000 and show wages paid in advance ₦500 in the balance sheet

6 Fatima withdraws goods from the business for personal use. The accounting treatment is to debit

A)stock account and credit profit and loss account

B)drawings account and credit stock account

C)Profit and loss account and credit drawings account

D)Stock account and credit drawings account

A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the

A)weighted average method

B)simple average method

C)FIFO method

D)LIFO method

Stock valuation is useful because it informs the sales department on the

A)prices of the competing goods

B)prices that will affect profitability

C)number of goods to produce

D)number of goods to sell

Which of the following stock valuation methods is suitable under inflationary conditions?

Options

A)FIFO

B)LIFO

C)Simple average

D)Weighted average

In the absence of a sales day book or sales account, credit sales can be computed from

A)creditor control account

B)debtors' control account

C)opening figures of the balance sheet

D)closing figures of the balance sheet