All practice questions

Ade and Bola are partners in a business sharing profits and losses in the ratio of $3:2$. They agree to admit Chidi into the firm with a $\frac{1}{5}$ share of future profits. The firm's goodwill is valued at $\text{N}50,000$. If goodwill is raised in the books of the firm and immediately written off, what is the net financial effect on Bola's capital account?

In the nutrient-poor, highly leached soils of the Miombo woodlands in Central and Southern Africa, local farmers practice a specialized variant of shifting cultivation known as the *Chitemene* system. What is the primary ecological mechanism by which this agricultural practice temporarily restores soil fertility for crop production?

An organization is being established primarily to promote sports, education, and charitable activities rather than for private monetary profit. Under corporate regulatory provisions, what key financial feature distinguishes this company limited by guarantee from a standard company limited by shares?

An auditor is evaluating the internal control environment of a firm that recently migrated its records. Which of the following statements correctly distinguishes the operational characteristics of an audit trail between manual and computerized accounting systems?

A expanding manufacturing firm in Lagos requires an accounting system that can handle its unique production workflow and specialized inventory tracking. The management prefers a pre-existing standard commercial software package, but requires the vendor to modify its source code and add custom modules to meet these specific operational needs. Which category of accounting software does this deployment represent?

Accounting software solutions vary significantly in deployment architecture, cost structures, and operational flexibility. Match each accounting software category on the left with its corresponding operational characteristic and deployment trade-off on the right.

While external stakeholders such as trade creditors and prospective investors rely primarily on summarized, historical general-purpose financial statements to evaluate solvency and profitability, internal management requires detailed, disaggregated, and forward-looking accounting information to perform operational control and strategic planning.

In consignment accounting, when a consignee sells goods on credit without receiving a del credere commission, any resulting bad debt is treated as a financial loss of the consignor and is debited to the Consignment Account in the consignor's ledger.

A sole trader received a cheque of $\text{₦}190,000$ from a debtor, Bisi, in full settlement of a debt of $\text{₦}200,000$, having allowed a $5\%$ cash discount. The transaction was entered correctly in the three-column cash book. Subsequently, the bank returned the cheque marked 'Dishonoured'. To completely write back the cash discount previously allowed upon recording the dishonoured cheque, which ledger account must be credited?

An accounting department of a trading firm implements a computerized accounting system. Before transaction processing begins, management releases a written manual detailing daily data entry rules, user validation checks, authorization thresholds, and backup schedules. Which component of a computerized accounting system do these written rules and operational guidelines represent?

A business organization requires an accounting software package designed and programmed entirely from scratch to suit its unique operational workflows. Which category of accounting software fulfills this requirement?

Match each public sector fund in Nigeria with its corresponding financial purpose or constitutional rule.

A government intends to establish a national transport body that operates with financial self-sufficiency, flexibility in daily decision-making, and immunity from civil service bureaucracy, while remaining accountable to the public through legislative oversight. Which corporate structure best satisfies these rationale requirements, and what is its defining legal feature?

Zenith Ventures Plc forfeited $3,000$ ordinary shares of $₦1.00$ each for non-payment of the final call of $₦0.35$ per share. The company subsequently reissued $2,000$ of these forfeited shares to Mrs. Okafor at $₦0.80$ per share as fully paid up. What amount should be transferred to the Capital Reserve account?

Which security feature in accounting software maintains a continuous chronological record of all user activities and transaction changes? Fill in the blank below.

The following financial balances were extracted from the ledger of Zainab Bookshop for the year ended 31 December 2025:

- Sales: $\text{₦}310,000$
- Returns Inwards: $\text{₦}10,000$
- Opening Inventory: $\text{₦}45,000$
- Purchases: $\text{₦}180,000$
- Returns Outwards: $\text{₦}15,000$
- Carriage Inwards: $\text{₦}12,000$
- Carriage Outwards: $\text{₦}8,000$
- Closing Inventory: $\text{₦}52,000$

What is the Gross Profit of Zainab Bookshop for the year ended 31 December 2025?

On 1 July 2026, a business had a cash balance of $\text{₦}45,000$ and a bank overdraft of $\text{₦}18,000$. During July, the following transactions occurred:
- July 4: Purchased goods with a list price of $\text{₦}120,000$ subject to a $10\%$ trade discount and a $5\%$ cash discount, paying by cheque immediately.
- July 12: Received a cheque of $\text{₦}95,000$ from a debtor in full settlement of a $\text{₦}100,000$ debt.
- July 18: Deposited $\text{₦}15,000$ cash into the bank account.
- July 25: A customer's cheque of $\text{₦}25,000$ previously deposited was returned dishonoured, and the bank charged a bank fee of $\text{₦}1,000$ directly to the account.
- July 28: Withdrew $\text{₦}10,000$ from the bank account for personal use.

Calculate the amount of the bank overdraft (in $\text{₦}$) at the end of July 2026.

Match each cash book transaction on the left with its correct entry treatment in a single-column or two-column cash book on the right.

Kano Manufacturing Enterprise operates two departments: Processing and Assembly. The Processing Department transfers semi-finished goods to the Assembly Department at cost plus a mark-up of $40\%$. At the end of the financial year, the Assembly Department held closing inventory valued at $\text{N}84,000$, of which $75\%$ represents goods transferred from the Processing Department. Calculate the required provision for unrealized profit on the closing inventory of the Assembly Department.

Match each accounting data processing method with its corresponding operational characteristics and error-detection timeline.