GOD IS KING HIGH SCHOOL UTE-OWERRE, IKA NORTH EAST LGA DELTA STATE
1st TERM 2025/2026 ACADEMIC SESSION
SUBJECT: Financial Accounting
CLASS: SS 3
SECTION A: OBJECTIVES
1. The financial statement that shows how profit is 10. Bonus shares are issued from
shared among partners is
A. share premium B. fresh issue of shares C.
A. Trading Account B. Profit and Loss Account C. accumulated profits/reserves D. bank loan
Appropriation Account D. Balance Sheet
11. The excess of issue price over nominal value of
2. In the absence of a partnership agreement, shares is credited to
interest on partners’ drawings is
A. Share Premium Account B. General Reserve C.
A. allowed at 5% B. not allowed C. charged at Capital Redemption Reserve D. Profit and Loss
10% D. shared equally Account
3. Goodwill in a partnership account is credited to 12. Preference shareholders have priority over
ordinary shareholders in
A. new partner’s capital B. all partners equally C.
old partners in old profit-sharing ratio D. A. voting rights B. dividend payment and capital
revaluation account repayment C. management control D. bonus
issue
4. The account that records the cost of raw
materials consumed is 13. Debentures differ from shares because they
represent
A. Work-in-Progress Account B. Prime Cost
Account C. Factory Overhead Account D. A. ownership capital B. loan capital C. working
Manufacturing Account capital D. reserve capital
5. Factory profit is transferred from Manufacturing 14. A sole trader’s capital is affected by
Account to
A. drawings B. interest on capital C. partner’s
A. Trading Account B. Profit and Loss Account C. salary D. goodwill
Balance Sheet D. Appropriation Account
15. The personal transactions of a sole trader
6. Market value added in a manufacturing account should be recorded in
is
A. private ledger B. general ledger C. drawings
A. cost of production + profit B. sales – cost of account only D. not recorded at all
production C. prime cost + overheads D. raw
materials + wages 16. The capital market deals mainly with
7. The document that governs the external affairs A. short-term funds B. long-term securities C.
of a company is treasury bills D. commercial papers
A. Articles of Association B. Memorandum of 17. The regulatory body for the Nigerian capital
Association C. Prospectus D. Certificate of market is
Trading
A. CBN B. SEC C. NDIC D. CAC
8. The minimum number of members required to
form a public limited company is 18. A right issue of shares is first offered to
A. 2 B. 7 C. 10 D. 50 A. the general public B. existing shareholders C.
financial institutions D. company directors
9. Authorized capital is also known as
19. When a company buys back its own shares, it is
A. Issued capital B. Paid-up capital C. Nominal called
capital D. Called-up capital
A. bonus issue B. right issue C. share repurchase 28. Interest on debentures is
D. private placement
A. an appropriation of profit B. a charge against
20. Interim dividend is declared from profit C. a reserve D. a liability only when paid
A. retained earnings B. current year’s profit C. 29. A prospectus is issued by a company when it
capital reserve D. share premium wants to
21. Dividend warrant is sent to shareholders when A. invite the public to subscribe for shares B.
dividend is declare dividend C. increase authorized capital D.
appoint auditors
A. proposed B. declared C. paid D. appropriated
30. The term “blue chip” in the capital market
22. In company accounts, preliminary expenses are refers to shares of
classified as
A. new companies B. highly reputable and stable
A. current assets B. fictitious assets C. intangible companies C. companies in loss D. government
assets D. tangible fixed assets companies
23. The account used to close off a deceased 31. In a sole trader’s books, net profit increases
partner’s capital is
A. drawings B. capital C. liabilities D. expenses
A. Realisation Account B. Revaluation Account C.
Executor’s Account D. Current Account 32. Provision for unrealized profit appears in
24. In manufacturing accounts, carriage inwards on A. consignment account B. partnership
raw materials is part of appropriation C. company balance sheet D.
manufacturing account
A. prime cost B. factory overhead C.
administrative expenses D. selling expenses 33. The Companies and Allied Matters Act (CAMA)
is the law governing
25. Royalties paid in a manufacturing concern are
treated as A. sole proprietorship B. partnership C. limited
liability companies D. cooperatives
A. direct expense B. factory overhead C. selling
overhead D. financial expense 34. A dormant partner is one who
26. A company limited by guarantee is usually A. does not take active part in management B.
formed for contributes no capital C. has no share in profit D.
is unknown to the public
A. profit making B. promotion of charity or
education C. manufacturing D. trading 35. The main difference between a share and a
debenture is that a debenture holder is
27. The maximum number of partners in a banking
partnership firm is A. an owner of the company B. a creditor of the
company C. entitled to vote D. paid dividend
A. 10 B. 20 C. 50 D. no limit
Que Téngas Suerte
GiKHS
