29/11/2025
*NECO GCE FINANCIAL ACCOUNTING*
(1a)
(PICK ANY THREE)
(i) Gross Profit: This is the difference between the net sales and the cost of goods sold before deducting operating expenses. It shows the profit made directly from trading activities and indicates how efficiently the business is buying and selling goods.
(ii) Net Profit: This is the final profit after all expenses have been deducted from theu gross profit. It reflects the actual profit made by the business during a period and is transferred to the capital account.
(iii) Cost of Goods Sold: This refers to the total cost of goods that were sold during a period. It includes opening stock plus purchases and carriage inwards minus closing stock. It helps determine the gross profit of the business.
(iv) Accrued Expenses: These are expenses that have been incurred during the accounting period but have not yet been paid. They are added to the expenses in the profit and loss account and shown as liabilities in the balance sheet.
(v) Prepaid Expenses: These are expenses that have been paid for in advance but relate to a future accounting period. They are deducted from expenses in the profit and loss account and shown as assets in the balance sheet.
(1b)
(PICK ANY SEVEN)
(i) Rates
(ii) Taxes
(iii) Fines and fees
(iv) Licences
(v) Grants from State Government
(vi) Grants from Federal Government
(vii) Earnings from commercial ventures
(viii) Loans
(ix) Rents from property
(2a)
(PICK ANY ONE)
A partnership is a type of business owned and managed by two or more persons who agree to carry on a lawful business with the aim of making profit and sharing the profits and losses.
OR
A partnership is a voluntary association of individuals who pool their resources together to establish and operate a business, sharing the risks, responsibilities, profits, and losses according to their agreement.
(2b)
(PICK ANY THREE)
(i) Work-in-Progress (WIP): Work-in-progress refers to the total value of all incomplete contract activit