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Question 3681Question →

Which of the following landforms is created by wind abrasion cutting into steep-sided, narrow ridges and furrows aligned parallel to the prevailing wind direction in arid regions?

Yardang

Zeugen

Oxbow lake

Terminal moraine

Show answer & explanation

Answer: Yardang

Answer

Yardang is created by wind abrasion eroding parallel bands of hard and soft rock aligned in the direction of the prevailing wind.

A Yardang is formed when wind abrasion undercuts and sculpts rocks into long, narrow, steep-sided ridges separated by furrows, aligning parallel to the direction of the prevailing wind in desert landscapes.

Step-by-Step Solution

Analyze the process and geological arrangement described in the stem.

The process is wind abrasion operating parallel to prevailing winds in arid conditions.

Differentiation between desert landforms relies on rock orientation (vertical vs horizontal) and process direction.

Distinguish between Yardang and Zeugen based on rock strata alignment.

Yardangs develop where vertical bands of hard and soft rocks lie parallel to wind direction, creating narrow ridges and furrows.

Zeugen require horizontal strata where wind abrades jointed hard rocks into tabular blocks.

Identify and reject distractors from non-aeolian domains.

Oxbow lakes originate from fluvial action and moraines from glacial deposition.

Landform classification requires isolating the active agent of erosion or deposition.

Key Concept

Aeolian Erosional Landforms and Rock Strata Orientation

Estimated Time:1m 0s

Question 3682Question →

Match each African climatic zone on the left with its defining temperature and precipitation characteristic on the right.

Click a left item, then click its matching right item

Show answer & explanation

Answer

The correct matches are: Equatorial Climate pairs with high uniform temperatures and double rainfall maxima; Tropical Continental Climate pairs with alternating wet and dry seasons controlled by the ITCZ; Mediterranean Climate pairs with mild wet winters and hot dry summers; Tropical Desert Climate pairs with extreme diurnal temperature ranges and annual rainfall under

250\text{ mm}

Each African climate zone is defined by distinct planetary wind systems, latitude, and atmospheric pressure dynamics. Equatorial climates remain warm and humid with two rainfall peaks. Savannas shift between wet and dry seasons based on ITCZ location. Mediterranean climates receive rain from mid-latitude Westerlies in winter, while Tropical Deserts feature cloudless skies, low annual precipitation (

<250\text{ mm}

), and high daily temperature ranges.

Step-by-Step Solution

Analyze Equatorial Climate characteristics

Identified year-round high temperatures (

26^\circ\text{C}-28^\circ\text{C}

) and double rainfall maxima.

Equatorial regions lie along the equator, experiencing constant insolation and twice-yearly ITCZ zenithal rain.

Analyze Tropical Continental (Savanna) characteristics

Identified alternating wet and dry seasons following ITCZ migration.

As the ITCZ moves northwards or southwards, rain-bearing maritime air masses are replaced by dry continental air masses.

Analyze Mediterranean Climate characteristics

Identified winter precipitation driven by Westerlies and dry summers.

The seasonal shift of wind belts brings prevailing Westerly winds to northern and southern continental extremities in winter.

Analyze Tropical Desert Climate characteristics

Identified extreme diurnal temperature ranges and annual rainfall under

250\text{ mm}

Subtropical high-pressure zones suppress cloud formation, leading to intense daytime solar radiation and rapid nocturnal cooling.

Key Concept

Climate Types and Characteristics of Africa

Estimated Time:1m 30s

Question 3683Question →

Adeola Traders Ltd. acquired a standard commercial accounting application to manage its general ledger. To accommodate its specific invoice layout and reporting needs, the vendor adjusted existing program configuration parameters and added custom template extensions without modifying or rewriting the underlying primary source code. Which type of accounting software does this arrangement represent?

Customized accounting software

Bespoke accounting software

Off-the-shelf accounting software

Batch processing operating system

Show answer & explanation

Answer: Customized accounting software

Answer

Customized accounting software is the correct classification because it involves adapting a ready-made commercial package through system parameters and template modifications without rewriting the core application code.

Customized accounting software refers to ready-made commercial packages that have been adjusted, fine-tuned, or modified with tailored features (such as specialized reports or invoice layouts) to meet specific organizational requirements without rewriting the main program structure.

Step-by-Step Solution

Analyze the software acquisition context and modifications described in the scenario.

The firm purchased a standard off-the-shelf package and requested parameter and template adjustments from the vendor.

Identifying whether the software was built from scratch or adapted from a standard package determines its classification.

Distinguish between off-the-shelf, customized, and bespoke software definitions.

Standard packages that undergo non-structural adaptations and user-specific configurations are defined as customized software.

Off-the-shelf software has zero modifications, while bespoke software is custom-written from scratch.

Key Concept

Classification of accounting software packages (Off-the-shelf, Customized, and Bespoke)

Question 3684Question →

In an agricultural district in West Africa, prolonged seasonal droughts and declining crop yields have prompted a massive out-migration of young working-age adults to coastal industrial cities. Which of the following best evaluates the primary demographic and economic consequence of this migration stream on the rural source community?

A sharp increase in the rural economic dependency ratio as the proportion of non-working age inhabitants rises relative to the active labor force.

A significant reduction in the rural dependency ratio due to the growing concentration of elderly dependents relative to the departing workforce.

An influx of new agricultural investments prompted by environmental drought acting as a major pull factor drawing young farmers into urban centers.

The rapid conversion of clustered nucleated village layouts into linear settlement patterns along rural farm access roads.

Show answer & explanation

Answer: A sharp increase in the rural economic dependency ratio as the proportion of non-working age inhabitants rises relative to the active labor force.

Answer

The primary consequence on the rural source area is a sharp increase in the economic dependency ratio as the proportion of non-working age inhabitants (children and the elderly) increases relative to the remaining productive workforce.

The selective out-migration of young, economically active adults directly reduces the denominator of the working-age population. Consequently, the relative proportion of non-working children and elderly relatives increases, elevating the economic dependency ratio and causing labor shortages in rural agriculture.

Step-by-Step Solution

Analyze the migration stream composition

Selective out-migration primarily removes young adults (economically active age cohort, typically 15–59 years) from the rural origin.

Rural-urban drift in developing regions is demographically selective, attracting young workers seeking urban employment.

Evaluate demographic ratio shifts

The proportion of dependents (individuals aged under 15 and over 60) relative to the active labor force increases.

The dependency ratio formula is defined as $\frac{\text{Pop}_{<15} + \text{Pop}_{\ge 65}}{\text{Pop}_{15-64}} \times 100$. A shrinking denominator elevates the overall ratio.

Determine economic impacts on the source area

Rural agricultural productivity declines due to labor shortages, while social burden on remaining workers rises.

Fewer working hands must support a higher relative number of dependents, leading to economic strain on the rural origin.

Key Concept

Demographic Effects of Rural-Urban Migration on Source Regions

Estimated Time:2m 0s

Question 3685Question →

Arrange the following stages of alpine glacial landform evolution in sequential order from the initial pre-glacial hollow to the final alpine peak landform.

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct sequence begins with the formation of a nivation hollow, followed by its enlargement into a bowl-shaped cirque, the sharpening of dividing rock walls into an arête by adjacent cirques, and culminates in the formation of a pyramidal peak by three or more converging cirques.

Alpine glacial landscapes evolve systematically from small localized hollows to complex high-relief landforms. Snow accumulates in hillside depressions where freeze-thaw weathering creates a nivation hollow. As ice thickens and begins rotational movement, plucking and abrasion transform the hollow into a deep, bowl-shaped cirque. When neighboring cirques erode headward towards each other, their dividing rock wall is carved into a narrow, sharp-edged arête. Finally, when three or more cirques erode into the same mountain block from different directions, their intersecting headwalls isolate a steep, horn-like pyramidal peak.

Step-by-Step Solution

Identify the initial weathering and accumulation process.

Freeze-thaw action and snow gathering produce a nivation hollow in a shallow mountain slope depression.

Glacial landform development begins with pre-glacial nivation in minor depressions.

Identify the primary landform created by active glacial scouring.

Rotational movement of glacier ice scours out an armchair-shaped cirque with a steep headwall and basin floor.

Plucking and abrasion deepen and expand the nivation hollow into a true cirque.

Determine the feature created between two adjacent expanding cirques.

Headward erosion from two opposite or neighboring cirques leaves a narrow, steep ridge known as an arête.

An arête requires pre-existing cirques eroding toward one another.

Determine the peak landform formed when multiple cirques meet.

When three or more cirques erode headward around a single mountain summit, they leave a sharp pyramidal peak.

This represents the apex of mountain glacial erosion.

Key Concept

Evolutionary sequence of erosional alpine glacial landforms from cirque development to pyramidal peak isolation.

Question 3686Question →

On 1st April 2025, Horizon Ltd issued $\text{₦}800,000$ , $12\%$ debentures at a discount of $5\%$ . Interest is payable semi-annually on 30th September and 31st March. What is the total amount of debenture interest (in $\text{₦}$ ) to be charged to the Profit and Loss Account for the financial year ended 31st December 2025?

Show answer & explanation

Answer: 72000

Answer

The total debenture interest to be charged to the Profit and Loss Account for the financial year ended 31st December 2025 is ₦72,000.

Debenture interest is computed at the stated annual rate of

12\%

on the nominal value of

\text{₦}800,000

, resulting in an annual interest of

\text{₦}96,000

. Because the debentures were issued on 1st April 2025 and the financial year ends on 31st December 2025, interest accrued for only 9 months. The total interest charged to the Profit and Loss Account is

\text{₦}96,000 \times \frac{9}{12} = \text{₦}72,000

Step-by-Step Solution

Calculate annual debenture interest on nominal value.

Annual interest = 12% of ₦800,000 = ₦96,000.

Debenture interest is calculated on nominal (par) value, regardless of whether debentures are issued at par, premium, or discount.

Determine the time period between debenture issue date and financial year-end.

From 1st April 2025 to 31st December 2025 is 9 months.

Interest expense must be recognized for the portion of the year the debentures were outstanding.

Calculate time-apportioned debenture interest expense.

₦96,000 × (9 / 12) = ₦72,000.

The Profit and Loss Account requires the exact accrued expense for the 9 active months of the accounting period.

Key Concept

Time Apportionment of Debenture Interest on Nominal Value

Question 3687Question →

Zenith Trading Plc has an issued ordinary share capital of $\text{₦}1,500,000$ made up of shares with a nominal value of $\text{₦}0.50$ each. The directors decide to issue rights to existing shareholders on the basis of $1$ new share for every $3$ shares held at an issue price of $\text{₦}0.80$ per share. If all shareholders fully subscribe to the rights issue, what is the total amount of cash proceeds received by the company?

\text{₦}400,000

\text{₦}500,000

\text{₦}800,000

\text{₦}1,200,000

Show answer & explanation

Answer: $\text{₦}800,000$

Answer

The total cash proceeds received by the company from the rights issue is

\text{₦}800,000

To find the total cash proceeds raised, first calculate the total number of existing ordinary shares:

\text{₦}1,500,000 / \text{₦}0.50 = 3,000,000

shares. Next, calculate the number of new shares issued based on the 1-for-3 rights ratio:

3,000,000 / 3 = 1,000,000

shares. Finally, multiply the number of new shares by the issue price per share:

1,000,000 \times \text{₦}0.80 = \text{₦}800,000

Step-by-Step Solution

Calculate the total number of existing issued shares.

\frac{\text{₦}1,500,000}{\text{₦}0.50} = 3,000,000\text{ shares}

Share capital is given as a total monetary value, so dividing by nominal value yields the share quantity.

Determine the number of new rights shares issued.

\frac{3,000,000\text{ shares}}{3} = 1,000,000\text{ new shares}

The rights issue offer ratio is 1 new share for every 3 existing shares held.

Calculate total cash proceeds from the issue.

1,000,000\text{ shares} \times \text{₦}0.80 = \text{₦}800,000

Cash proceeds equal the number of rights shares issued multiplied by the issue price per share.

Key Concept

Calculation of rights issue proceeds

Question 3688Question →

A manufacturing company's accounting department wants to ensure that any unauthorized modification of ledger records can be traced back to the specific user and time of entry. Which data security control directly provides this chronological record of system activities?

Audit trail

Data encryption

Antivirus protection

Data backup procedure

Show answer & explanation

Answer: Audit trail

Answer

Audit trail

An audit trail maintains an automated, chronological record of all accounting transactions and user actions, ensuring full transparency and traceability for edits made in computerized accounting systems.

Step-by-Step Solution

Identify the core security objective in the scenario

The goal is to track unauthorized changes in ledger entries back to a specific user and timestamp.

Maintaining accountability requires an automated tracking mechanism for system events.

Evaluate the function of an audit trail

An audit trail sequentially logs every transaction creation, modification, deletion, user ID, and execution time within the accounting software.

This chronological log allows internal auditors to inspect system history and detect fraudulent adjustments.

Key Concept

Audit Trail in Accounting Software

Estimated Time:1m 0s

Question 3689Question →

Nigeria's transportation network connects interior agricultural and industrial regions with coastal maritime outlets. Which of the following seaports serves as the primary terminus for Nigeria's western railway line and handles the highest volume of the nation's international cargo?

Lagos Port Complex (Apapa)

Port Harcourt Port

Calabar Port

Warri Port

Show answer & explanation

Answer: Lagos Port Complex (Apapa)

Answer

Lagos Port Complex (Apapa)

The Lagos Port Complex (Apapa and Tin Can Island) forms the maritime gateway of the western transport corridor in Nigeria. It connects directly with the Lagos-Kano rail network and handles the largest proportion of international imports and exports.

Step-by-Step Solution

Identify the primary rail lines in Nigeria

The two main historical rail trunks are the Western Line (Lagos to Kano) and the Eastern Line (Port Harcourt to Maiduguri).

Understanding network geography clarifies terminal seaports.

Determine the seaport connecting the Western Line and major trade volume

Lagos (Apapa) sits at the ocean terminus of the Western Line and handles over 70% of Nigeria's maritime cargo traffic.

This establishes Lagos Port Complex as the correct location.

Key Concept

Nigerian Transport Corridors and Seaports

Estimated Time:45s

Question 3690Question →

Unlike the Nile and Niger rivers which experience pronounced seasonal fluctuations in volume, the Congo River maintains a remarkably consistent discharge throughout the year. Which of the following geographic factors is primarily responsible for this steady flow regime?

The river basin straddles the Equator, allowing northern and southern tributaries to experience alternating wet seasons that balance total flow.

The river flows northwards into the Mediterranean Sea, receiving heavy winter rainfall along its lower reach.

The river course is dominated by lower-course floodplains and oxbow lakes that permanently regulate seasonal flood surges.

The river relies primarily on continuous glacial meltwater runoff originating from high-altitude peaks in East Africa.

Show answer & explanation

Answer: The river basin straddles the Equator, allowing northern and southern tributaries to experience alternating wet seasons that balance total flow.

Answer

The steady flow regime of the Congo River is primarily due to its drainage basin straddling the Equator, which results in complementary seasonal rainfall peaks from northern and southern tributaries.

The Congo River basin is uniquely positioned across the Equator. Because rainfall in tropical Africa follows the seasonal migration of the overhead sun, the northern tributaries reach peak volume when the southern tributaries are low, and vice versa. This complementary hydrological contribution ensures that the main stem of the Congo River receives a constant supply of water year-round.

Step-by-Step Solution

Analyze the geographical location and extent of the Congo River drainage basin.

The basin lies symmetrically across the Equator in Central Africa, covering regions in both Northern and Southern Hemispheres.

Understanding equatorial symmetry is essential for evaluating seasonal precipitation patterns.

Examine the seasonal distribution of rainfall in equatorial Africa.

When the Northern Hemisphere tributaries experience their dry season, the Southern Hemisphere tributaries experience maximum rainfall, and vice versa.

The movement of the Intertropical Convergence Zone (ITCZ) causes alternating rainy seasons on either side of the Equator.

Determine the effect of this rainfall pattern on river discharge.

The high stage of tributaries on one side of the Equator balances the low stage of tributaries on the other side, maintaining a stable volume at the main outlet throughout the year.

Complementary tributary inflows compensate for individual seasonal dips.

Key Concept

Equatorial Drainage Basin Symmetry and River Regimes

Estimated Time:1m 30s

Question 3691Question →

In the extreme northern savanna belt of Nigeria bordering the Niger Republic, agricultural productivity is severely threatened by wind erosion and topsoil desiccation during the long dry season. Which major soil group characterizes this semi-arid zone, and which soil conservation strategy is specifically designed to combat this wind-driven soil loss?

Regosols and Brown soils; establishment of shelterbelts and tree windbreaks perpendicular to prevailing winds

Ferrallitic soils; construction of contour terraces and stone lines along gentle hill slopes

Hydromorphic soils; installation of sub-surface tile drainage networks and dykes

Ferruginous tropical soils; application of annual controlled bush burning to clear crop residues

Show answer & explanation

Answer: Regosols and Brown soils; establishment of shelterbelts and tree windbreaks perpendicular to prevailing winds

Answer

Regosols and Brown soils paired with the establishment of shelterbelts and tree windbreaks perpendicular to prevailing winds

In Nigeria, soil distribution closely follows latitudinal climatic zones. The extreme northern fringes (Sudan and Sahel savanna belts) are dominated by weakly developed, sandy Regosols and Brown soils. Because these loose soils are susceptible to severe wind erosion during the dry Harmattan season, establishing shelterbelts—lines of deep-rooted trees planted perpendicular to the prevailing winds—serves as the primary biological conservation technique to break wind force and stabilize topsoil.

Step-by-Step Solution

Identify the soil zone based on geographical position and climatic conditions.

The extreme northern boundary of Nigeria (e.g., northern Sokoto, Katsina, Jigawa, Yobe, and Borno states) lies in the semi-arid zone where weakly developed sandy soils (Regosols and Brown soils) predominate.

Nigerian soil distribution mirrors latitudinal climatic and vegetation belts from south to north.

Determine the dominant soil degradation process in this environment.

Desiccation caused by high temperatures and strong dry Harmattan winds blowing from the Sahara Desert leads to severe wind erosion.

Sparse vegetation cover in semi-arid zones leaves topsoil exposed to wind action during dry periods.

Select the appropriate targeted soil conservation technique.

Afforestation through shelterbelts (strips of trees planted across the path of prevailing winds) reduces wind speed, retains moisture, and traps shifting sand.

Water-focused measures (such as terracing or contouring) target water runoff on slopes, whereas shelterbelts specifically target wind-driven erosion on flat arid plains.

Key Concept

Spatial distribution of major soil groups in Nigeria and implementation of process-specific soil conservation techniques.

Estimated Time:2m 0s

Question 3692Question →

When preparing a company's Statement of Profit or Loss, financial accountants present line items and key profit figures in a standardized vertical structure. How should the following financial deductions and intermediate totals be ordered from the top of the statement down to the final profit for the year?

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct presentation sequence in a company Statement of Profit or Loss is: (1) Deducting Cost of Sales from Revenue to compute Gross Profit, (2) Subtracting operating expenses from Gross Profit to obtain Profit from Operations, (3) Deducting finance costs (such as debenture interest) to determine Profit Before Tax, and (4) Subtracting corporate income tax expense from Profit Before Tax to arrive at Profit After Tax.

The standard vertical format of a company's Statement of Profit or Loss follows a logical sequence: Revenue minus Cost of Sales yields Gross Profit; deducting operating expenses gives Profit from Operations; deducting finance costs like debenture interest yields Profit Before Tax; and subtracting income tax expense gives Profit After Tax.

Step-by-Step Solution

Determine the initial gross profit section calculation.

Cost of Sales is subtracted from Revenue to determine Gross Profit.

Standard accounting rules require reporting trading gross profitability prior to administrative and distribution overheads.

Calculate the operating profit figure.

Operating expenses are deducted from Gross Profit to arrive at Profit from Operations.

Administrative, selling, and distribution expenses reflect core operational performance.

Deduct non-operational financing charges.

Finance costs like debenture interest are subtracted from Profit from Operations to yield Profit Before Tax.

Debenture interest represents a cost of long-term financing rather than an operational expense.

Account for corporate tax obligations.

Income tax provision is subtracted from Profit Before Tax to produce Profit After Tax.

Taxation applies to taxable earnings after finance expenses have been deducted.

Key Concept

Structure of Company Statement of Profit or Loss

Question 3693Question →

Kano Allied Products Plc extracted the following balances from its trial balance for the year ended 31 December 2025:

- Gross Profit: ₦500,000
- Rent paid: ₦60,000
- Salaries paid: ₦90,000
- Existing Provision for Doubtful Debts: ₦12,000
- Trade Receivables: ₦160,000

Additional information at year-end:
1. Rent paid includes ₦10,000 prepaid for the next accounting year.
2. Salaries of ₦10,000 are accrued and unpaid.
3. Provision for doubtful debts is to be adjusted to 5% of Trade Receivables.

What is the net profit before taxation to be reported in the Statement of Profit or Loss?

₦334,000

₦342,000

₦354,000

₦346,000

Show answer & explanation

Answer: ₦354,000

Answer

The net profit before taxation to be reported in the Statement of Profit or Loss is ₦354,000.

The correct profit calculation accounts for prepaid rent by deducting ₦10,000 from rent paid (giving ₦50,000) and adding accrued salaries of ₦10,000 to salaries paid (giving ₦100,000), yielding ₦150,000 in total operating expenses. The required provision for doubtful debts is 5% of ₦160,000 = ₦8,000. Since the existing provision is ₦12,000, there is a reduction of ₦4,000, which is added as income to Gross Profit. Thus, Net Profit = ₦500,000 + ₦4,000 - ₦150,000 = ₦354,000.

Step-by-Step Solution

Calculate the adjusted Rent expense for the current period.

Rent expense = ₦60,000 - ₦10,000 (prepaid) = ₦50,000.

Prepaid expenses relate to future periods and must be deducted from cash paid.

Calculate the adjusted Salaries expense for the current period.

Salaries expense = ₦90,000 + ₦10,000 (accrued) = ₦100,000.

Accrued expenses represent incurred costs not yet paid and must be added.

Determine total operating expenses.

Total operating expenses = ₦50,000 + ₦100,000 = ₦150,000.

Sum of adjusted rent and salaries expenses.

Calculate the required provision for doubtful debts and compare it with the existing provision.

New provision = 5% of ₦160,000 = ₦8,000. Existing provision = ₦12,000. Reduction in provision = ₦12,000 - ₦8,000 = ₦4,000 (Income).

A decrease in provision for doubtful debts is credited to the Statement of Profit or Loss as income.

Compute Net Profit before taxation.

Net profit = Gross Profit (₦500,000) + Provision Reduction (₦4,000) - Operating Expenses (₦150,000) = ₦354,000.

Net profit is gross profit plus other income minus operating expenses.

Key Concept

Preparation of Company Statement of Profit or Loss with End-of-Year Adjustments

Question 3694Question →

Emeka, a furniture maker, keeps incomplete accounting records for his business. His financial position at the beginning and end of the year 2025 was as follows:

Item	1 January 2025 (₦)	31 December 2025 (₦)
Equipment	180,000	160,000
Inventory	60,000	85,000
Trade Debtors	40,000	55,000
Cash at Bank	20,000	30,000
Trade Creditors	50,000	40,000
Accrued Electricity	—	10,000

During 2025, Emeka introduced an additional ₦30,000 into the business as capital. He also withdrew ₦25,000 in cash and goods worth ₦15,000 for personal use.

Using the Statement of Affairs method, what is Emeka's net profit for the year ended 31 December 2025?

₦40,000

₦20,000

₦60,000

₦25,000

Show answer & explanation

Answer: ₦40,000

Answer

The net profit for the year ended 31 December 2025 is ₦40,000.

The correct option is ₦40,000. Opening Capital is computed as total opening assets (₦300,000) minus opening liabilities (₦50,000) = ₦250,000. Closing Capital is computed as total closing assets (₦330,000) minus total closing liabilities including accrued electricity (₦50,000) = ₦280,000. Total drawings equal ₦40,000 (₦25,000 cash + ₦15,000 goods). Applying the formula: Net Profit = Closing Capital (₦280,000) + Drawings (₦40,000) - Capital Introduced (₦30,000) - Opening Capital (₦250,000) yields ₦40,000.

Step-by-Step Solution

Calculate Opening Capital as of 1 January 2025

Total Opening Assets = ₦180,000 + ₦60,000 + ₦40,000 + ₦20,000 = ₦300,000. Opening Liabilities = ₦50,000. Opening Capital = ₦300,000 - ₦50,000 = ₦250,000.

Opening capital represents net assets at the start of the period.

Calculate Closing Capital as of 31 December 2025

Total Closing Assets = ₦160,000 + ₦85,000 + ₦55,000 + ₦30,000 = ₦330,000. Closing Liabilities = ₦40,000 + ₦10,000 = ₦50,000. Closing Capital = ₦330,000 - ₦50,000 = ₦280,000.

Accrued expenses are liabilities and must be added to trade creditors when computing total closing liabilities.

Calculate Total Drawings

Total Drawings = Cash Drawings (₦25,000) + Goods Drawings (₦15,000) = ₦40,000.

Both cash and goods taken by the owner for personal use reduce business equity and must be added back to compute net profit.

Apply the Statement of Affairs Profit Formula

Net Profit = Closing Capital (₦280,000) + Drawings (₦40,000) - Capital Introduced (₦30,000) - Opening Capital (₦250,000) = ₦40,000.

Capital comparison adjusts closing capital for owner transactions to find pure profit earned from operations.

Key Concept

Capital Comparison / Statement of Affairs Method

Estimated Time:1m 30s

Question 3695Question →

The accounting records of Bako & Sons, a sole trading business, revealed the following balances at the end of the financial year on 31 December 2025:

- Gross Sales: $\text{₦}140,000$
- Purchases: $\text{₦}85,000$
- Opening Inventory: $\text{₦}15,000$
- Closing Inventory: $\text{₦}18,500$
- Carriage Inwards: $\text{₦}3,500$
- Carriage Outwards: $\text{₦}2,000$
- Returns Inwards: $\text{₦}4,000$
- Returns Outwards: $\text{₦}5,000$

What is the gross profit earned by Bako & Sons for the year?

\text{₦}56,000

\text{₦}54,000

\text{₦}60,000

\text{₦}63,000

Show answer & explanation

Answer: $\text{₦}56,000$

Answer

The gross profit earned by Bako & Sons for the year is

\text{₦}56,000

The gross profit of

\text{₦}56,000

is calculated by deducting the Cost of Goods Sold (

\text{₦}80,000

) from Net Sales (

\text{₦}136,000

). Net Sales is Gross Sales (

\text{₦}140,000

) minus Returns Inwards (

\text{₦}4,000

). Cost of Goods Sold is Opening Inventory (

\text{₦}15,000

) plus Purchases (

\text{₦}85,000

) minus Returns Outwards (

\text{₦}5,000

) plus Carriage Inwards (

\text{₦}3,500

) minus Closing Inventory (

\text{₦}18,500

). Carriage Outwards (

\text{₦}2,000

) is an operating expense and does not enter the Trading Account.

Step-by-Step Solution

Calculate Net Sales (Turnover)

\text{Net Sales} = \text{Gross Sales} - \text{Returns Inwards} = \text{₦}140,000 - \text{₦}4,000 = \text{₦}136,000

Returns inwards represent goods returned by customers and must be deducted from gross sales.

Calculate Net Purchases

\text{Net Purchases} = \text{Purchases} - \text{Returns Outwards} + \text{Carriage Inwards} = \text{₦}85,000 - \text{₦}5,000 + \text{₦}3,500 = \text{₦}83,500

Returns outwards reduce total purchases, while carriage inwards is a direct transport cost added to bring goods into the business.

Calculate Cost of Goods Sold (COGS)

\text{COGS} = \text{Opening Inventory} + \text{Net Purchases} - \text{Closing Inventory} = \text{₦}15,000 + \text{₦}83,500 - \text{₦}18,500 = \text{₦}80,000

Cost of goods sold measures the direct cost of inventory sold during the financial period.

Calculate Gross Profit

\text{Gross Profit} = \text{Net Sales} - \text{COGS} = \text{₦}136,000 - \text{���}80,000 = \text{₦}56,000

Gross profit is the difference between revenue from sales and the direct cost of those sales.

Key Concept

Trading Account and Gross Profit Calculation

Question 3696Question →

The following balances were extracted from the books of Zenith Nigeria Plc as at 31st December 2025:

Account Item	Amount (₦)
Issued Share Capital (Ordinary shares of ₦1 each)	500,000
Share Premium	50,000
General Reserve	30,000
10% Debentures	100,000
Non-Current Assets (Net Book Value)	620,000
Current Assets	180,000
Current Liabilities	70,000

What is the balance of the Retained Earnings (Profit and Loss Account) as at 31st December 2025?

Show answer & explanation

Answer: 50000

Answer

The balance of Retained Earnings as at 31st December 2025 is ₦50,000.

Under the company accounting framework, Net Assets equals total Shareholders' Equity. Total Assets of ₦800,000 less Current Liabilities of ₦70,000 and Non-Current Liabilities of ₦100,000 leaves Net Assets of ₦630,000. Subtracting the known equity items (Share Capital ₦500,000 + Share Premium ₦50,000 + General Reserve ₦30,000 = ₦580,000) yields the Retained Earnings balance of ₦50,000.

Step-by-Step Solution

Calculate Total Assets

₦800,000

Total Assets is the sum of Non-Current Assets (₦620,000) and Current Assets (₦180,000).

Calculate Net Assets (Capital Employed by Equity)

₦630,000

Net Assets is determined by deducting Current Liabilities (₦70,000) and Non-Current Liabilities (₦100,000) from Total Assets (₦800,000).

Sum known Shareholders' Equity components

₦580,000

Add Share Capital (₦500,000), Share Premium (₦50,000), and General Reserve (₦30,000).

Deduct known equity components from Net Assets to solve for Retained Earnings

₦50,000

Retained Earnings = Net Assets (₦630,000) - Known Equity (₦580,000) = ₦50,000.

Key Concept

Accounting Equation for Company Statement of Financial Position

Question 3697Question →

The following financial information was extracted from the single-entry records of Kalu, a sole trader, for the year ended 31 December 2025:

- Opening creditors balance (1 January 2025): $₦24,500$
- Payments made to creditors by cheque: $₦115,000$
- Discount received from suppliers: $₦3,200$
- Returns outwards: $₦4,800$
- Contra set-off with sales ledger: $₦2,500$
- Closing creditors balance (31 December 2025): $₦31,000$

What is the total value of credit purchases for the year in Naira?

Show answer & explanation

Answer: 132000

Answer

The total value of credit purchases for the year is

₦132,000

By reconstructing the Purchases Ledger Control Account, the debit side total is

₦156,500

(comprising cheque payments of

₦115,000

, discount received of

₦3,200

, returns outwards of

₦4,800

, contra set-off of

₦2,500

, and closing balance of

₦31,000

). Subtracting the opening balance of

₦24,500

gives the total credit purchases of

₦132,000

Step-by-Step Solution

Determine the debit side total of the Purchases Ledger Control Account

Debit Total =

115,000 + 3,200 + 4,800 + 2,500 + 31,000 = ₦156,500

All transactions that reduce liabilities (payments, discounts received, returns, set-offs) and the closing balance are debited to the control account.

Calculate the missing credit purchases balancing figure

Credit Purchases =

156,500 - 24,500 = ₦132,000

Credit purchases increase the liability to creditors and represent the credit entry needed to balance the Purchases Ledger Control Account against the opening credit balance.

Key Concept

Reconstructing the Purchases Ledger Control Account to find missing credit purchases.

Question 3698Question →

Arrange the following key geographical features and locations along the course of the River Niger in sequential order, starting from its source region in West Africa and moving downstream towards its lower course in Nigeria.

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct sequential order from upstream to downstream is Fouta Djallon Highlands, followed by Macina Inland Delta, Kainji Dam Reservoir, and Lokoja Confluence.

The correct order traces the natural downstream flow of the River Niger: 1. Fouta Djallon Highlands (source in Guinea) -> 2. Macina Inland Delta (Mali floodplains) -> 3. Kainji Dam Reservoir (middle course impoundment in Nigeria) -> 4. Lokoja Confluence (confluence with the Benue River in central Nigeria).

Step-by-Step Solution

Identify the headwaters/source region of the River Niger.

The River Niger originates in the high-altitude Fouta Djallon Highlands near the border of Sierra Leone in Guinea.

A river course always begins at its elevated source region.

Trace the river flow into Mali.

As the river flows northeast into Mali, the low slope causes it to spread out into the Macina Inland Delta.

The inland delta is an upper-middle course wetland feature situated prior to the northern desert bend.

Trace the river entering western Nigeria.

After looping south through Niger Republic into Nigeria, the river is impounded to form the Kainji Dam Reservoir.

Kainji Lake represents a major middle-course feature in western Nigeria.

Locate the major tributary junction in central Nigeria.

Further downstream at Lokoja, the River Niger merges with the Benue River before flowing towards the Gulf of Guinea.

The Lokoja confluence occurs downstream of Kainji in the lower course of the river system.

Key Concept

Sequential drainage flow and geomorphic features of major African rivers

Question 3699Question →

A sole trader extracted the following ledger balances and adjustment details at the end of the accounting period:

Account / Information	Amount ( $\text{N}$ )
Gross Profit	$120,000$
Discount Received	$4,500$
Rent Paid	$18,000$
Salaries and Wages Paid	$32,000$
General Expenses	$15,000$
Trade Debtors	$50,000$

Additional information at year end:
1. Rent paid includes $\text{N}3,000$ prepaid for the next financial period.
2. Accrued salaries and wages at the end of the year amount to $\text{N}4,000$ .
3. A provision for doubtful debts is to be created at $5\%$ of trade debtors.

What is the net profit for the year in Naira ( $\text{N}$ )?

Show answer & explanation

Answer: 56000

Answer

The net profit for the year is N56,000.

To determine the net profit, add revenues (Gross profit of N120,000 + Discount received of N4,500 = N124,500) and subtract all adjusted operating expenses (Rent of N15,000 + Salaries of N36,000 + General expenses of N15,000 + Doubtful debts provision of N2,500 = N68,500). Net profit equals N124,500 - N68,500 = N56,000.

Step-by-Step Solution

Calculate Total Income

Total Income = N124,500

Discount received is revenue income and must be added to gross profit in the Profit and Loss Account.

Adjust Rent for prepayment

Adjusted Rent = N15,000

Prepayments relate to the next accounting period and must be deducted from rent paid during the current period.

Adjust Salaries and Wages for accrual

Adjusted Salaries = N36,000

Accrued expenses represent benefits consumed but not yet paid, so they must be added to wages paid under the matching concept.

Compute Provision for Doubtful Debts

Provision = N2,500

Creating a 5% provision on trade debtors of N50,000 creates an operating expense of 0.05 * 50,000 = N2,500.

Sum total adjusted operating expenses

Total Expenses = N68,500

Total operating expenses include rent (N15,000), salaries (N36,000), general expenses (N15,000), and provision for doubtful debts (N2,500).

Deduct total expenses from total income to find Net Profit

Net Profit = N56,000

Net Profit is computed as Total Income (N124,500) minus Total Operating Expenses (N68,500).

Key Concept

Net Profit Determination with Year-End Adjustments

Question 3700Question →

Which of the following commercial timber species harvested from the equatorial rainforest zone of West and Central Africa is classified as an indigenous tropical hardwood?

Iroko

Scots Pine

Norway Spruce

Douglas Fir

Show answer & explanation

Answer: Iroko

Answer

Iroko is an indigenous tropical hardwood species from African equatorial rainforests.

Iroko is a broad-leaved tree species indigenous to the tropical rainforest belt of West and Central Africa, producing dense, high-value commercial hardwood used extensively for furniture and construction.

Step-by-Step Solution

Identify the natural vegetation zone and characteristic timber types of West and Central Africa.

The region is dominated by tropical rainforests comprising broad-leaved trees.

Equatorial climate conditions support broad-leaved hardwood species rather than coniferous softwoods.

Classify the given options into hardwoods vs. softwoods.

Iroko (along with Mahogany, Sapele, and Obeche) is a tropical hardwood. Pines, spruces, and firs are temperate softwoods.

Distinguishing tropical broad-leaved hardwoods from temperate coniferous softwoods identifies the native commercial timber.

Key Concept

Classification of African Tropical Timber Species

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