SS2 FA CBT

1. A partnership is a business owned by:

• One person

• Shareholders

• Two or more persons

• The government

The agreement that binds partners is called:

• Constitution

• Company policy

• Partnership deed

• Account book

In a partnership, profits and losses are usually:

• Paid to creditors

• Shared equally with all employees

• Shared among partners as agreed

• Not distributed

Partnership may be dissolved by:

• External audit

• Customer request

• Agreement of the partners

• Annual report

Which document is used to finalize accounts during dissolution?

• Receipt book

• Trial balance

• Realization account

• D) Ledger summary

When partnership is dissolved, liabilities are:

• Ignored

• B) Given to staff

• Paid before capital is returned

• Shared with customers

A company is owned by:

• Employees

• Partners

• Shareholders

• Government officials

A limited liability company is managed by:

• Debtors

• Supervisors

• Board of directors

• Suppliers

The financial statement that shows income and expenses is the:

• Balance sheet

• Statement of capital

• Income statement (Profit & Loss)

• Trial balance

If a company earns ₦100,000 revenue and spends ₦70,000, what is its profit?

• ₦60,000

• ₦50,000

• ₦30,000

• ₦20,000