All practice questions

Question 12121Question →

The Ruwenzori Mountains located along the border of the Democratic Republic of the Congo and Uganda differ fundamentally in their structural origin from nearby prominent peaks such as Mount Kilimanjaro and Mount Kenya within the East African Rift System. Which of the following best explains this geological distinction?

The Ruwenzori Mountains were formed by tectonic uplift of a basement block (horst) between parallel faults, whereas Mount Kilimanjaro and Mount Kenya were built up by volcanic eruptions along the rift zone.

The Ruwenzori Mountains resulted from alpine folding of marine sedimentary strata during the Tertiary period, whereas Mount Kilimanjaro was produced by rift valley subsidence and graben formation.

The Ruwenzori Mountains are depositional landforms accumulated by upper-course river action, whereas Mount Kilimanjaro was shaped predominantly by wind erosion and mass wasting.

The Ruwenzori Mountains represent a series of eroded volcanic plugs, whereas Mount Kilimanjaro and Mount Kenya formed through compressional faulting and crustal warping.

Show answer & explanation

Answer: The Ruwenzori Mountains were formed by tectonic uplift of a basement block (horst) between parallel faults, whereas Mount Kilimanjaro and Mount Kenya were built up by volcanic eruptions along the rift zone.

Answer

The Ruwenzori Mountains were formed by tectonic uplift of a basement block (horst) between parallel faults, whereas Mount Kilimanjaro and Mount Kenya were built up by volcanic eruptions along the rift zone.

The correct answer accurately contrasts the tectonic origins of landforms in East Africa. The Ruwenzori Range is an exceptional block mountain (horst) formed by the upward displacement of crystalline basement rock between parallel faults within the East African Rift system. In contrast, nearby peaks like Mount Kilimanjaro and Mount Kenya were created through intense volcanic activity, where repeated lava flows and pyroclastic materials accumulated around eruptive vents along the rift fractures.

Step-by-Step Solution

1

Identify the geological landform classification of the Ruwenzori Mountains.

The Ruwenzori Range consists of pre-Cambrian metamorphic crystalline basement rocks uplifted between fault lines (a horst mountain).

Unlike most high East African mountains, Ruwenzori is non-volcanic.

2

Identify the structural origin of Mount Kilimanjaro and Mount Kenya.

Both are massive volcanic cones (stratovolcanoes) formed by lava extrusion associated with rifting along the East African Rift System.

Tectonic extension allowed mantle magma to erupt and accumulate high volcanic peaks.

3

Compare the origins to select the correct structural distinction.

Ruwenzori represents horst block uplift, while Kilimanjaro and Mount Kenya represent volcanic accumulation.

Distinguishing block mountains from volcanic landforms within the rift belt is essential for understanding African relief.

Key Concept

Horst (Block Mountain) vs Volcanic Landform Origins in the East African Rift System

Estimated Time:2m 0s

Question 12122Question →

Kola, a sole trader, recorded total purchases of $₦2,450,000$ for the financial year ended 31 December 2025. During the year, Kola took goods costing $₦65,000$ (with a retail selling price of $₦85,000$ ) from the business for personal family use. If no adjustment has been made for the withdrawn goods, what is the adjusted purchases figure (in $₦$ ) to be reported in the Trading Account?

Show answer & explanation

Answer: 2385000

Answer

The adjusted purchases figure to be reported in the Trading Account is ₦2,385,000.

When a sole trader withdraws goods for personal use, the double entry requires debiting Drawings Account and crediting Purchases Account at cost price (

₦65,000

). The adjusted purchases figure included in the Trading Account is calculated by subtracting the cost of withdrawn goods from unadjusted purchases (

₦2,450,000 - ₦65,000 = ₦2,385,000

).

Step-by-Step Solution

1

Identify the appropriate valuation for goods withdrawn by the owner.

The cost price of

₦65,000

must be used, not the selling price of

₦85,000

.

A business entity does not realize profit on goods consumed by its owner; therefore, withdrawals are measured strictly at cost.

2

Calculate the adjusted purchases figure for the Trading Account.

₦2,450,000 - ₦65,000 = ₦2,385,000

.

Deducting goods withdrawn from total purchases ensures that cost of sales reflects only goods available for sale to external customers.

Key Concept

Adjustment of purchases for goods withdrawn by owner at cost price

Question 12123Question →

Efe, Funke, and Garba are partners sharing profits and losses in the ratio $3:2:1$ respectively. On December 31, 2025, Garba dies. At the date of death, the accounting records reveal the following balances:

- Garba's Capital Account (credit): $\text{₦}120,000$
- Garba's Current Account (credit): $\text{₦}15,000$
- Total firm Goodwill valuation: $\text{₦}90,000$
- Total net profit on asset revaluation: $\text{₦}30,000$
- Accrued interest on capital due to Garba: $\text{₦}6,000$
- Garba's total drawings to date of death: $\text{₦}10,000$

What is the net amount (in $\text{₦}$ ) payable to Garba's executor account?

Show answer & explanation

Answer: 151000

Answer

The net amount payable to Garba's executor account is ₦151,000.

The deceased partner's executor account is credited with the partner's capital balance (₦120,000), current account credit balance (₦15,000), share of goodwill (1/6 of ₦90,000 = ₦15,000), share of revaluation profit (1/6 of ₦30,000 = ₦5,000), and interest on capital (₦6,000), giving a total gross entitlement of ₦161,000. Deducting the drawings of ₦10,000 results in a net final payable amount of ₦151,000.

Step-by-Step Solution

1

Determine Garba's profit-sharing fraction

Garba's share = 1 / (3 + 2 + 1) = 1/6

Garba's profit-sharing ratio is 1 part out of 6 total parts.

2

Calculate Garba's share of firm goodwill and revaluation profit

Goodwill share = 1/6 × ₦90,000 = ₦15,000; Revaluation profit share = 1/6 × ₦30,000 = ₦5,000

Goodwill and revaluation profit belong to all partners according to their profit-sharing ratios.

3

Calculate total credit entitlements due to Garba

Total Credits = ₦120,000 + ₦15,000 + ₦15,000 + ₦5,000 + ₦6,000 = ₦161,000

Capital balance, current account credit balance, goodwill share, revaluation profit share, and interest on capital increase the deceased partner's account balance.

4

Deduct drawings to find the final net executor settlement

Net Settlement = ₦161,000 - ₦10,000 = ₦151,000

Drawings reduce the amount payable to the deceased partner's legal representatives.

Key Concept

Deceased Partner Capital Account Settlement

Question 12124Question →

The Biu Plateau in northeastern Nigeria is a distinct physical region formed by Cenozoic volcanic activity, setting it apart from the surrounding Hawal Plains. How does this specific basaltic volcanic geology influence the local drainage pattern and hydrogeological characteristics of the plateau?

The volcanic dome structure gives rise to a radial drainage pattern, while the permeable basaltic cap rocks promote groundwater infiltration and escarpment spring discharge.

The folded metamorphic rock complex produces a trellis drainage pattern, resulting in deep subterranean karst dissolution channels.

The thick alluvial river deposits yield a dendritic drainage pattern characterized by extensive oxbow lakes across the plateau summit.

The horizontal sedimentary sandstone layers generate a parallel drainage network bounded by asymmetric cuesta escarpments.

Show answer & explanation

Answer: The volcanic dome structure gives rise to a radial drainage pattern, while the permeable basaltic cap rocks promote groundwater infiltration and escarpment spring discharge.

Answer

The volcanic dome structure gives rise to a radial drainage pattern, while the permeable basaltic cap rocks promote groundwater infiltration and escarpment spring discharge.

The Biu Plateau is a highland volcanic feature in northeastern Nigeria composed of basaltic lava flows. Its elevated dome topography forces streams to flow outwards in all directions, creating a classic radial drainage network. Additionally, the weathered and jointed basaltic rock layer acts as a permeable cap that absorbs precipitation, storing groundwater which discharges as freshwater springs along the plateau's peripheral escarpments into surrounding river basins such as the Hawal River.

Step-by-Step Solution

1

Identify the geological composition and physical structure of the Biu Plateau.

The Biu Plateau consists of young basaltic lava flows forming a high volcanic dome landform over the older Basement Complex.

Geological origin dictates both surface topography and rock porosity/permeability.

2

Determine the resulting surface drainage pattern from a central high volcanic dome.

Streams originate near the central peak and flow outward in all compass directions, producing a radial drainage pattern.

Radial drainage naturally develops on conical or domed relief features like volcanoes and highland plateaus.

3

Analyze the hydrogeological behavior of basaltic lava rocks.

Jointed and porous basalt allows high water percolation, forming aquifers that emerge as natural springs along plateau escarpments.

Basaltic rocks retain fractured structures and vesicles that facilitate groundwater storage and discharge.

Key Concept

Influence of Basaltic Volcanic Relief on Drainage Patterns and Hydrogeology in Nigeria

Question 12125Question →

The following summary of financial information was extracted from the accounting records of Highgrade Manufacturing Company for the year ended 31st December 2025:

Financial Item	Amount (₦)
Sales Revenue	520,000
Opening Stock of Finished Goods	60,000
Cost of Finished Goods Produced	310,000
Closing Stock of Finished Goods	50,000
Carriage Outwards	15,000
Administrative Expenses (including ₦5,000 prepaid)	35,000
Selling Expenses (excluding ₦8,000 accrued)	22,000

Based on the information above, complete the missing financial figures for the Trading and Profit & Loss Account.

Fill in the blanks below

The Gross Profit reported in the Trading Account is ₦, while the Net Profit reported in the Profit & Loss Account is ₦.

Show answer & explanation

Answer

The Gross Profit is ₦200,000 and the Net Profit is ₦125,000.

To calculate the Gross Profit, opening stock of finished goods (₦60,000) is added to the cost of finished goods produced (₦310,000) minus closing stock of finished goods (₦50,000) to arrive at a Cost of Goods Sold of ₦320,000. Subtracting this from Sales Revenue (₦520,000) gives a Gross Profit of ₦200,000. For Net Profit, operating expenses are adjusted for prepayments and accruals: Administrative Expenses (₦35,000 - ₦5,000 = ₦30,000), Selling Expenses (₦22,000 + ₦8,000 = ₦30,000), and Carriage Outwards (₦15,000). Total operating expenses of ₦75,000 subtracted from ₦200,000 Gross Profit yields a Net Profit of ₦125,000.

Step-by-Step Solution

1

Calculate Cost of Goods Sold (COGS)

COGS = ₦60,000 + ₦310,000 - ��50,000 = ₦320,000

Cost of goods sold in a manufacturing firm is calculated by adding the opening stock of finished goods to the cost of production (finished goods produced) and subtracting the closing stock of finished goods.

2

Calculate Gross Profit

Gross Profit = ₦520,000 - ₦320,000 = ₦200,000

Gross profit is determined by deducting the cost of goods sold from sales revenue.

3

Calculate Adjusted Total Operating Expenses

Carriage Outwards = ₦15,000; Adjusted Administrative Expenses = ₦35,000 - ₦5,000 = ₦30,000; Adjusted Selling Expenses = ₦22,000 + ₦8,000 = ₦30,000. Total Operating Expenses = ₦15,000 + ₦30,000 + ₦30,000 = ₦75,000

Prepaid expenses must be subtracted from paid administrative expenses, while accrued expenses must be added to selling expenses. Carriage outwards is a selling/distribution expense charged directly to the Profit and Loss Account.

4

Calculate Net Profit

Net Profit = ₦200,000 - ₦75,000 = ₦125,000

Net profit is calculated by deducting total operating expenses from gross profit.

Key Concept

Preparation of Trading and Profit & Loss Account for Manufacturing Entities

Estimated Time:2m 0s

Question 12126Question →

Complete the accounting statement below regarding the journal entry for goods taken by a sole proprietor for private consumption.

Fill in the blanks below

When a sole proprietor withdraws stock costing

\text{₦}25,000

for personal use, the double entry in the General Journal requires debiting the account and crediting the account at cost price.

Show answer & explanation

Answer

The Drawings account is debited and the Purchases account is credited.

Under the double-entry system, any withdrawal of business inventory by the proprietor for personal use is treated as drawings. The Drawings account is debited because drawings increase (reducing total equity), while the Purchases account is credited at cost price to reduce total inventory purchased for resale.

Step-by-Step Solution

1

Identify the nature of the transaction under the business entity concept.

The withdrawal of goods by the owner is a personal transaction (Drawings) that must be kept separate from business operations.

The entity concept dictates that the business and its owner are separate legal and accounting entities.

2

Determine the account to debit.

Debit the Drawings Account.

Drawings represent the value of cash or inventory taken by the owner, which reduces owner's equity and carries a debit balance.

3

Determine the account to credit.

Credit the Purchases Account.

Because the goods taken were originally recorded in Purchases at cost price, crediting Purchases reduces the cost of goods available for sale.

Key Concept

Accounting Entry for Goods Withdrawn for Personal Use

Question 12127Question →

Match each population theory, model stage, or demographic concept on the left with its corresponding characteristic description or theoretical premise on the right.

Click a left item, then click its matching right item

Show answer & explanation

Answer

Demographic Transition Model (Stage 4) matches the condition where birth and death rates stabilize at low levels with negligible natural growth; Malthusian Population Theory matches the concept of geometric population expansion versus arithmetic food growth; Optimum Population Concept matches the population size yielding maximum per capita economic output; Boserupian Theory matches the premise that population pressure stimulates agricultural and technological innovation.

Each demographic theory and model stage accurately aligns with its foundational assumption: Stage 4 of the Demographic Transition Model features low birth/death equilibrium; Malthus emphasizes geometric vs arithmetic growth rates; Optimum population targets peak per capita economic output; Boserup highlights population growth as a direct catalyst for technological innovation.

Step-by-Step Solution

1

Analyze the characteristic features of Stage 4 of the Demographic Transition Model.

Identify that birth and death rates are low, equalized, and produce a stationary or aging population structure.

Stage 4 represents a post-industrial demographic equilibrium where socioeconomic development lowers fertility to match low mortality.

2

Examine the mathematical core of Malthusian Population Theory.

Match Malthus with the geometric rate of demographic increase versus arithmetic growth of agricultural yields.

Malthusian theory rests on the fundamental imbalance between population growth velocity and food production limits.

3

Define the economic criteria of the Optimum Population concept.

Associate optimum population with peak per capita productivity given resource and technological constraints.

Underpopulation or overpopulation yields lower per capita income, whereas the optimum balances labor force size with capital resources for maximum economic returns.

4

Evaluate the counter-perspective of Boserupian demographic theory.

Link Ester Boserup's model to technological innovation induced directly by population density and food demand.

Boserup proposed that population growth is an independent variable forcing societies to innovate land-use practices and agricultural technologies.

Key Concept

Demographic Theories, Transition Stages, and Population-Resource Models

Estimated Time:2m 0s

Question 12128Question →

Geothermal energy is classified as a non-renewable natural resource because the Earth's internal thermal reserves are permanently exhausted once tapped for electricity generation.

True

False

Show answer & explanation

Answer: False

Answer

The statement is false. Geothermal energy is classified as a renewable natural resource because heat from the Earth's interior is continuously generated and replenished.

The statement is false because geothermal energy is a renewable natural resource. Thermal energy is continuously produced within the Earth's mantle and core primarily through the radioactive decay of elements such as uranium, thorium, and potassium, rendering the heat supply continuous and virtually inexhaustible.

Step-by-Step Solution

1

Define renewable versus non-renewable natural resources based on replenishment rates.

Renewable resources replenish naturally on human time scales, whereas non-renewable resources exist in finite quantities and require millions of years to form.

Establishing the criterion for resource classification is necessary to evaluate the statement.

2

Analyze the origin and replenishment mechanism of geothermal energy.

Geothermal energy originates from continuous radioactive decay of minerals in the Earth's crust and primordial heat flow from the mantle and core.

Determining whether subterranean heat depletes permanently or regenerates naturally establishes its energy category.

3

Evaluate the accuracy of the statement.

The statement incorrectly claims that geothermal energy is non-renewable and permanently exhausted after use.

Since subterranean heat is continuously transferred from the Earth's deep interior, the resource is renewable.

Key Concept

Classification of energy resources based on natural replenishment rates

Question 12129Question →

Chief Emeka, a sole trader, withdrew goods costing $₦50,000$ (selling price $₦65,000$ ) from his shop for personal family use. This transaction was omitted from the financial records when calculating an initial draft Cost of Goods Sold of $₦480,000$ . What is the correct Cost of Goods Sold after adjusting for the goods withdrawn?

₦430,000

₦530,000

₦415,000

₦545,000

Show answer & explanation

Answer: $₦430,000$

Answer

₦430,000

Goods taken by a sole proprietor for personal consumption are recorded at cost price (

₦50,000

) by debiting Drawings and crediting Purchases. Crediting Purchases reduces the net purchases figure in the Trading Account, which directly lowers the Cost of Goods Sold from

₦480,000

to

₦430,000

.

Step-by-Step Solution

1

Determine the correct valuation basis for goods withdrawn by the owner.

The goods withdrawn must be valued at cost price (

₦50,000

), not at selling price (

₦65,000

).

The owner cannot make a profit on goods taken for personal consumption, so the withdrawal is recorded at cost.

2

Identify the accounting adjustment for goods withdrawn on the Trading Account.

The cost of goods withdrawn is credited to the Purchases Account, which reduces total purchases.

Goods taken for domestic use reduce the stock available for sale to customers.

3

Calculate the adjusted Cost of Goods Sold.

Adjusted Cost of Goods Sold = Initial Cost of Goods Sold - Cost of Goods Withdrawn =

₦480,000 - ₦50,000 = ₦430,000

.

Deducting the reduced purchase amount from the draft Cost of Goods Sold gives the true cost of goods sold to customers.

Key Concept

Accounting treatment of goods withdrawn by the owner for personal use at cost price

Question 12130Question →

On 1st January 2024, Chidi Enterprise had an existing Provision for Doubtful Debts of $\text{₦}4,000$ . At 31st December 2024, the business's ledger showed Trade Debtors of $\text{₦}110,000$ . An additional bad debt of $\text{₦}10,000$ is to be written off before creating a provision for doubtful debts at $5\%$ on remaining trade debtors. What amount will be debited to the Profit and Loss Account as provision for doubtful debts for the year ended 31st December 2024?

\text{₦}5,000

\text{₦}1,000

\text{₦}1,500

\text{₦}5,500

Show answer & explanation

Answer: $\text{₦}1,000$

Answer

\text{₦}1,000

First, the additional bad debt of

\text{₦}10,000

must be written off from trade debtors, leaving net trade debtors of

\text{₦}100,000

. Calculating

5\%

on

\text{₦}100,000

gives a new required provision of

\text{₦}5,000

. Since an existing provision of

\text{₦}4,000

already exists in the books, only the net increase of

\text{₦}1,000

(

\text{₦}5,000 - \text{₦}4,000

) is debited to the Profit and Loss Account.

Step-by-Step Solution

1

Deduct additional bad debts from trade debtors to determine net trade debtors.

Net Trade Debtors =

\text{₦}110,000 - \text{₦}10,000 = \text{₦}100,000

.

Provision for doubtful debts must only be calculated on good, remaining trade receivables after writing off known bad debts.

2

Calculate the required provision for doubtful debts at year-end.

New Provision Required =

5\% \times \text{₦}100,000 = \text{₦}5,000

.

The policy requires maintaining a

5\%

provision on net trade debtors.

3

Determine the net adjustment (increase) to be charged to the Profit and Loss Account.

Increase in Provision =

\text{₦}5,000 - \text{₦}4,000 = \text{₦}1,000

.

Only the net increase in the provision is debited to the Profit and Loss Account as an expense.

Key Concept

Adjustment of Provision for Doubtful Debts

Estimated Time:1m 30s

Question 12131Question →

On a topographical map drawn to a Representative Fraction (RF) scale of $1 : 100,000$ , the measured distance between a railway station and a local airstrip is $7.5\text{ cm}$ . What is the actual ground distance between the two locations in kilometers?

Show answer & explanation

Answer: 7.5

Answer

The actual ground distance between the railway station and the airstrip is

7.5\text{ km}

.

Given an RF scale of

1 : 100,000

, every

1\text{ cm}

on the map corresponds to

100,000\text{ cm}

on the ground, which equals

1\text{ km}

. Multiplying the measured map length of

7.5\text{ cm}

by

1\text{ km}

per centimeter gives an actual ground distance of

7.5\text{ km}

.

Step-by-Step Solution

1

Interpret the Representative Fraction (RF) scale.

An RF scale of

1 : 100,000

means

1\text{ cm}

on the map represents

100,000\text{ cm}

on the ground.

RF scale expresses map distance to ground distance in identical units.

2

Convert the ground distance scale unit from centimeters to kilometers.

100,000\text{ cm} = \frac{100,000}{100,000}\text{ km} = 1\text{ km}

.

There are

100,000\text{ cm}

in

1\text{ km}

(

100\text{ cm/m} \times 1,000\text{ m/km}

).

3

Calculate the total actual ground distance.

\text{Ground Distance} = 7.5\text{ cm} \times 1\text{ km/cm} = 7.5\text{ km}$.

Multiplying the map length by the real-world distance represented per unit length determines the true distance.

Key Concept

Map Scale Conversion and Ground Distance Calculation

Question 12132Question →

The trial balance extract of a sole trader as at 31st December 2025 showed Motor Vehicles at cost of $\text{₦}2,000,000$ and Provision for Depreciation on Motor Vehicles (1st January 2025) of $\text{₦}600,000$ .

On 1st July 2025, an additional motor vehicle was bought for $\text{₦}800,000$ , and initial delivery charges of $\text{₦}100,000$ incurred to bring the vehicle into operational use were incorrectly charged to general motor expenses.

Depreciation is charged at $20\%$ per annum using the reducing balance method, calculated on a pro-rata basis for additions. What is the total depreciation charge on motor vehicles in the Profit and Loss Account for the year ended 31st December 2025?

\text{₦}360,000

\text{₦}370,000

\text{₦}460,000

\text{₦}490,000

Show answer & explanation

Answer: $\text{₦}370,000$

Answer

\text{₦}370,000

The correct charge to the Profit and Loss account is

\text{₦}370,000

. The delivery charge of

\text{₦}100,000

must be capitalized, making the cost of the new vehicle

\text{₦}900,000

. Depreciation on existing vehicles is calculated on net book value (

20\% \times [\text{₦}2,000,000 - \text{₦}600,000] = \text{₦}280,000

). Pro-rata depreciation for the new vehicle owned for 6 months is

20\% \times \text{₦}900,000 \times \frac{6}{12} = \text{₦}90,000

. Adding both yields

\text{₦}370,000

.

Step-by-Step Solution

1

Determine the correct capital cost of the new vehicle

Capital Cost =

\text{₦}800,000 + \text{₦}100,000 = \text{₦}900,000

All incidental costs incurred to bring a non-current asset into location and condition for operational use must be capitalized.

2

Calculate depreciation on existing motor vehicles for the full year

Net Book Value at start =

\text{₦}2,000,000 - \text{₦}600,000 = \text{₦}1,400,000

. Depreciation =

20\% \times \text{₦}1,400,000 = \text{₦}280,000

Under the reducing balance method, depreciation is applied to net book value (cost minus accumulated depreciation).

3

Calculate pro-rata depreciation on the new vehicle from 1st July to 31st December (6 months)

Depreciation =

20\% \times \text{₦}900,000 \times \frac{6}{12} = \text{₦}90,000

Pro-rata time basis requires charging depreciation only for the months the asset was owned in the financial year.

4

Sum total depreciation for the Profit and Loss Account

Total Depreciation =

\text{₦}280,000 + \text{₦}90,000 = \text{₦}370,000

Total annual depreciation consists of depreciation on existing assets plus depreciation on additions.

Key Concept

Adjustment for depreciation using the reducing balance method with capital expenditure adjustment and pro-rata time apportionment.

Question 12133Question →

Which of the following wind systems is responsible for bringing dry, dusty Harmattan conditions across Nigeria during the dry season?

North-East Trade Winds

South-West Trade Winds

South-East Trade Winds

Equatorial Easterlies

Show answer & explanation

Answer: North-East Trade Winds

Answer

The North-East Trade Winds are responsible for bringing the dry, dusty Harmattan conditions to Nigeria during the dry season.

The North-East Trade Winds originate over the arid Sahara Desert and blow across West Africa when the Inter-Tropical Discontinuity shifts southwards. This air mass is dry, cool, and dust-laden, producing the characteristic Harmattan conditions during the dry season.

Step-by-Step Solution

1

Identify the atmospheric conditions described in the stem.

The stem describes dry, cool, and dusty weather known as the Harmattan.

Understanding the surface weather features helps determine the originating air mass and wind vector.

2

Determine the direction and origin of the air mass causing Harmattan conditions in West Africa.

The air originates over the Sahara Desert (Tropical Continental air mass) and blows southwestward.

Continental air masses from desert regions lack moisture and carry fine dust particles.

3

Match the originating air mass movement to the prevailing surface wind system.

The North-East Trade Winds blow from the north-east off the Sahara landmass into Nigeria.

When the Inter-Tropical Discontinuity (ITD) moves southwards, the North-East Trade Winds dominate the region.

Key Concept

Prevailing Wind Systems and Air Masses in Nigeria

Estimated Time:45s

Question 12134Question →

Zaria Industrial Ltd transfers finished goods from its factory to its trading section at cost plus a $20\%$ mark-up. At the beginning of the financial year, the stock of finished goods held at transfer price was $\text{₦}30,000$ . At the end of the financial year, the stock of finished goods at transfer price was $\text{₦}45,000$ . What is the net adjustment required in the Profit and Loss Account for the provision for unrealized profit?

An increase of

\text{₦}2,500

debited to the Profit and Loss Account

An increase of

\text{₦}3,000

debited to the Profit and Loss Account

An increase of

\text{₦}7,500

debited to the Profit and Loss Account

A decrease of

\text{₦}2,500

credited to the Profit and Loss Account

Show answer & explanation

Answer: An increase of $\text{₦}2,500$ debited to the Profit and Loss Account

Answer

An increase of

\text{₦}2,500

debited to the Profit and Loss Account

When finished goods are transferred at a profit, unrealized profit contained in closing inventory must be eliminated using a provision account. With a

20\%

mark-up on cost (

\frac{1}{5}

), the margin on transfer price is

\frac{1}{6}

. The opening provision is

\frac{1}{6} \times \text{₦}30,000 = \text{₦}5,000

, and the required closing provision is

\frac{1}{6} \times \text{₦}45,000 = \text{₦}7,500

. The net increase of

\text{₦}2,500

is debited to the Profit and Loss Account.

Step-by-Step Solution

1

Convert the mark-up percentage to a margin fraction

Mark-up of

20\% = \frac{1}{5}

. Profit margin on transfer price

= \frac{1/5}{1 + 1/5} = \frac{1}{6}

.

Because finished inventory values are given at transfer price (cost + profit), margin must be applied to extract the unrealized profit element.

2

Calculate the opening provision for unrealized profit

Opening provision

= \frac{1}{6} \times \text{₦}30,000 = \text{₦}5,000

.

Determines the existing balance in the Provision for Unrealized Profit account.

3

Calculate the closing provision for unrealized profit

Closing provision

= \frac{1}{6} \times \text{₦}45,000 = \text{₦}7,500

.

Determines the required closing balance for unrealized profit in ending inventory.

4

Determine the net adjustment for the Profit and Loss Account

Increase in provision

= \text{₦}7,500 - \text{₦}5,000 = \text{₦}2,500

(debit to Profit and Loss Account).

An increase in provision represents an additional expense charged against profits.

Key Concept

Provision for Unrealized Profit on Closing Inventory

Estimated Time:1m 30s

Question 12135Question →

The Earth's outer crust is divided into continental and oceanic layers based on density and mineral composition. Which of the following statements correctly describes the sial layer of the Earth's crust?

It forms a continuous layer under the ocean floors composed mainly of basaltic rocks created through marine sediment deposition.

It forms the lighter upper continental crust composed predominantly of silica and aluminium, floating above the denser sima layer.

It consists of loose surface debris moved down slopes under the direct force of gravity across continental margins.

It represents the dense metallic core of the Earth dominated by molten iron and nickel below the mantle.

Show answer & explanation

Answer: It forms the lighter upper continental crust composed predominantly of silica and aluminium, floating above the denser sima layer.

Answer

The sial layer forms the lighter upper continental crust composed predominantly of silica and aluminium, floating above the denser sima layer.

The sial layer forms the discontinuous outer layer of the Earth's crust found mainly on continents. It is composed chiefly of granitic rocks rich in silica and aluminium, with a lower density that allows it to float upon the continuous, denser sima layer underneath.

Step-by-Step Solution

1

Identify the chemical composition and position of the sial layer.

Sial derives its name from Silica (Si) and Aluminium (Al) and makes up the upper continental crust.

Geophysical composition divides the outer crust into upper sial and lower sima.

2

Compare the density of sial relative to sima.

Sial has an average density of about 2.7 g/cm³, making it lighter than the underlying sima (density ~3.0 g/cm³).

Due to its lower density, continental sial floats upon the denser basaltic sima layer.

Key Concept

Chemical zonation of the Earth's crust (Sial vs. Sima)

Estimated Time:1m 0s

Question 12136Question →

In consignment accounting, an abnormal loss is credited to the Consignment Account at cost plus proportional expenses, whereas a normal loss is not separately credited to the Consignment Account but instead inflates the cost per unit of the remaining good units.

True

False

Show answer & explanation

Answer: True

Answer

The statement is True.

The statement is correct because normal loss is unavoidable and treated by adjusting the unit cost of surviving units without a credit entry to the Consignment Account, while abnormal loss is avoidable, valued including proportionate expenses, and explicitly credited to the Consignment Account.

Step-by-Step Solution

1

Analyze the accounting treatment of normal loss.

Normal loss is inherent and unavoidable. It requires no journal entry crediting the Consignment Account. Instead, the cost per unit of remaining good units is recalculated using the formula: Total Cost / (Total Units - Normal Loss Units).

To ensure the remaining inventory absorbs the cost of natural and expected loss.

2

Analyze the accounting treatment of abnormal loss.

Abnormal loss is accidental and avoidable. Its valuation equals: Cost of lost units + Proportional consignor expenses + Proportional consignee non-recurring expenses prior to loss. This value is credited to the Consignment Account.

To prevent extraordinary losses from distorting the true operating profit or loss of the consignment.

3

Evaluate the statement.

The statement correctly contrasts the crediting of abnormal loss with the cost-absorption mechanism of normal loss.

Both components accurately state standard financial accounting rules for consignment transactions.

Key Concept

Treatment of Normal and Abnormal Losses in Consignment

Question 12137Question →

A rectangular agricultural estate measuring $5\text{ cm}$ by $12\text{ cm}$ on a topographical map represents an actual ground area of $60\text{ km}^2$ . If the map is enlarged such that the estate covers an area of $240\text{ cm}^2$ on the new map, what is the denominator of the Representative Fraction (RF) scale of the enlarged map?

Show answer & explanation

Answer: 50000

Answer

The denominator of the Representative Fraction (RF) scale of the enlarged map is 50000.

The original map area of

60\text{ cm}^2

representing

60\text{ km}^2

gives a linear scale of

1\text{ cm}

to

1\text{ km}

, which corresponds to an original RF scale of

1 : 100,000

. Enlarging the map area to

240\text{ cm}^2

increases the area by a factor of

4

. The linear enlargement factor is

\sqrt{4} = 2

. Enlarging a map by a linear factor of

2

halves the scale denominator, yielding a new Representative Fraction scale of

1 : 50,000

, with a denominator of

50,000

.

Step-by-Step Solution

1

Calculate the area of the estate on the original map.

Original Map Area =

5\text{ cm} \times 12\text{ cm} = 60\text{ cm}^2

.

Establishes the initial representation of the estate on paper.

2

Determine the original map scale from the map area and ground area.

Area scale:

60\text{ cm}^2 = 60\text{ km}^2 \implies 1\text{ cm}^2 = 1\text{ km}^2

. Linear scale:

1\text{ cm} = 1\text{ km} = 100,000\text{ cm}

. Original RF =

1 : 100,000

.

Finding the original scale denominator is necessary before applying the enlargement factor.

3

Calculate the area enlargement factor.

Area Enlargement Factor =

\frac{240\text{ cm}^2}{60\text{ cm}^2} = 4

.

Compares the new map area to the original map area.

4

Calculate the linear enlargement factor (

k

).

Linear Enlargement Factor

k = \sqrt{4} = 2

.

Linear scale changes as the square root of the area scale change.

5

Calculate the new RF scale denominator.

New RF denominator =

\frac{100,000}{2} = 50,000

.

Enlarging a map linearly by a factor of 2 makes the scale 2 times larger, dividing the denominator by 2.

Key Concept

Map Enlargement and Linear vs Area Scale Conversion

Question 12138Question →

Zainab, a cosmetics retailer in Kano, maintains single-entry accounting records. For the year ended 31st December 2025, her records showed total sales of $\text{₦}120,000$ , an opening inventory of $\text{₦}18,000$ , and total purchases of $\text{₦}95,000$ . If she earns a uniform mark-up of $33\frac{1}{3}\%$ on cost, what is the estimated value of her closing inventory as at 31st December 2025?

\text{₦}33,000

\text{₦}23,000

\text{₦}5,000

\text{₦}13,000

Show answer & explanation

Answer: $\text{₦}23,000$

Answer

\text{₦}23,000

The correct answer is derived by first converting the mark-up of

33\frac{1}{3}\%

(

\frac{1}{3}

on cost) to a margin of

25\%

(

\frac{1}{4}

on sales). Subtracting the gross profit of

\text{₦}30,000

(

25\%

of

\text{₦}120,000

) yields a Cost of Goods Sold of

\text{₦}90,000

. Subtracting

\text{₦}90,000

from total goods available for sale (

\text{₦}18,000 + \text{₦}95,000 = \text{₦}113,000

) gives an estimated closing inventory of

\text{₦}23,000

.

Step-by-Step Solution

1

Convert mark-up on cost to margin on sales

\text{Margin} = \frac{\text{Mark-up}}{1 + \text{Mark-up}} = \frac{1/3}{1 + 1/3} = \frac{1}{4} = 25\%

Sales revenue is given, so profit percentage must be expressed relative to selling price (margin).

2

Calculate Gross Profit and Cost of Goods Sold (COGS)

\text{Gross Profit} = 25\% \times \text{₦}120,000 = \text{₦}30,000

;

\text{COGS} = \text{₦}120,000 - \text{₦}30,000 = \text{₦}90,000

Cost of Goods Sold equals Sales Revenue minus Gross Profit.

3

Calculate Closing Inventory using the COGS formula

\text{Goods Available for Sale} = \text{₦}18,000 + \text{₦}95,000 = \text{₦}113,000

;

\text{Closing Inventory} = \text{₦}113,000 - \text{₦}90,000 = \text{₦}23,000

Closing Inventory is the difference between total goods available for sale and Cost of Goods Sold.

Key Concept

Application of Mark-up and Margin in Estimating Cost of Goods Sold and Stock

Estimated Time:1m 30s

Question 12139Question →

Match each African nation in Column A with its corresponding geographical or political boundary characteristic in Column B.

Click a left item, then click its matching right item

Show answer & explanation

Answer

Lesotho matches with being an enclave state completely surrounded by South Africa; Madagascar matches with being the largest island nation off the southeastern coast; The Gambia matches with being almost entirely enclosed by Senegal except for its Atlantic coast; and the Democratic Republic of the Congo matches with being the second-largest country in Africa by land area.

Lesotho is geographically defined as an enclave within South Africa. Madagascar is Africa's largest island nation in the Indian Ocean. The Gambia is surrounded on three sides by Senegal. The Democratic Republic of the Congo is Africa's second-largest country by area.

Step-by-Step Solution

1

Analyze the geographical status of Lesotho.

Lesotho is entirely surrounded by South Africa.

Lesotho is one of the rare sovereign enclave states globally.

2

Identify the territorial classification of Madagascar.

Madagascar is an island nation off the southeastern coast of Africa.

It is the largest island nation in Africa and fourth-largest in the world.

3

Determine the political boundaries of The Gambia.

The Gambia is wrapped by Senegal on three sides.

Its territory extends along the Gambia River, sharing a land border only with Senegal.

4

Evaluate the land area ranking of the Democratic Republic of the Congo.

The Democratic Republic of the Congo is Central Africa's largest country and Africa's second-largest overall.

Following Algeria's position as largest, DRC holds the second spot in land area in Africa.

Key Concept

Political Divisions and Geographic Boundaries of African Nations

Estimated Time:1m 30s

Question 12140Question →

Match each ledger account used under the dependent branch invoice price system with its primary accounting function.

Click a left item, then click its matching right item

Show answer & explanation

Answer

Branch Stock Account matches with inventory control at selling price; Branch Stock Adjustment Account matches with gross profit calculation via mark-up accumulation; Stock Reserve Account matches with storing unrealized profit on closing inventory; Goods Sent to Branch Account matches with tracking merchandise dispatched from head office.

Under the invoice price method for dependent branches, ledger accounts fulfill distinct operational and reporting roles: Branch Stock Account tracks inventory at selling price to detect shortages; Branch Stock Adjustment Account accumulates profit mark-ups to calculate gross profit; Stock Reserve Account eliminates unrealized profit from closing stock; and Goods Sent to Branch Account tracks head office merchandise dispatches.

Step-by-Step Solution

1

Determine the function of the Branch Stock Account under invoice pricing.

It records movements at selling price to control stock and detect shortages.

By maintaining both receipts and sales at selling price, any balance difference indicates physical stock loss or gain.

2

Determine the function of the Branch Stock Adjustment Account.

It isolates profit loadings to compute actual gross profit.

The account balances profit mark-ups against stock reserve adjustments to arrive at true gross profit.

3

Determine the function of the Stock Reserve Account.

It sets aside the unrealized profit included in unsold branch inventory.

To comply with accounting concepts (prudence and historical cost), closing stock must not be stated above cost.

4

Determine the function of the Goods Sent to Branch Account.

It records transfers of goods at invoice price from head office.

It acts as a contra account to head office purchases, adjusted by removing loading to find net cost of goods sent.

Key Concept

Accounting for Dependent Branches at Selling / Invoice Price

Estimated Time:1m 30s

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