Institute of Chartered Accountants of Nigeria (ICAN) Exam 1

The Institute of Chartered Accountants of Nigeria (ICAN) Exam 1 Past Questions with Answers.

Practice the Institute of Chartered Accountants of Nigeria (ICAN) Exam 1 past questions and answers. Our experts have answered the questions and you will get the correct answers to the Institute of Chartered Accountants of Nigeria (ICAN) Exam 1 questions. Prepare yourself for the exam ahead and test your knowledge and readiness.

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Institute of Chartered Accountants of Nigeria (ICAN) Exam 1

Institute of Chartered Accountants of Nigeria (ICAN) Exam 1

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1 / 40

ABC Ltd. has the following data: Total Revenue = ₦1,500,000, Cost of Goods Sold = ₦900,000, Operating Expenses = ₦300,000, and Income Tax Expense = ₦60,000. Calculate the net profit margin.

2 / 40

ABC Ltd. reported the following: Total Assets = ₦2,500,000, Total Liabilities = ₦1,000,000, and Retained Earnings = ₦900,000. Calculate the total shareholders' equity.

3 / 40

ABC Ltd. had sales of ₦500,000, gross profit of ₦200,000, and operating expenses of ₦100,000. What is the operating income?

4 / 40

ABC Ltd. issued bonds with a face value of ₦1,000,000 at a discount of 10%. What is the carrying amount of the bonds at issuance?

5 / 40

ABC Ltd. reported the following information for the year ended 31 December 2023: Net Sales = ₦600,000, Cost of Goods Sold = ₦400,000, Operating Expenses = ₦120,000, and Income Tax Expense = ₦24,000. Calculate the net income.

6 / 40

A company's beginning inventory was ₦50,000, ending inventory was ₦30,000, and the cost of goods sold was ₦200,000. What was the amount of inventory purchased during the year?

7 / 40

XYZ Ltd. had net income of ₦800,000 and 100,000 common shares outstanding. Calculate the earnings per share (EPS).

8 / 40

ABC Ltd. had sales of ₦1,000,000, and its cost of goods sold was ₦600,000. The average inventory during the period was ₦150,000. Calculate the inventory turnover ratio.

9 / 40

A company purchased a piece of machinery for ₦1,200,000. The machine has an estimated useful life of 5 years and a residual value of ₦200,000. Using the straight-line method of depreciation, what will be the annual depreciation expense?

10 / 40

ABC Ltd. had the following balances: Sales = ₦1,000,000, Accounts Receivable = ₦100,000, and Bad Debts = ₦10,000. What is the accounts receivable turnover ratio?

11 / 40

ABC Ltd. sold goods for ₦1,200,000 on credit. The terms were 2/10, net 30. The customer paid within the discount period. Calculate the cash received.

12 / 40

XYZ Ltd. has the following balances: Cash = ₦50,000, Accounts Receivable = ₦70,000, Inventory = ₦80,000, Accounts Payable = ₦60,000, and Short-term Notes Payable = ₦40,000. Calculate the current ratio.

13 / 40

XYZ Ltd. had sales of ₦1,200,000, variable costs of ₦720,000, and fixed costs of ₦300,000. Calculate the contribution margin ratio.

14 / 40

XYZ Ltd. has the following data: Total Sales = ₦1,500,000, Cost of Goods Sold = ₦900,000, and Average Inventory = ₦300,000. Calculate the inventory turnover ratio.

15 / 40

The following information relates to ABC Ltd. for the year ended 31 December 2023: Net Income = ₦500,000, Preferred Dividends = ₦50,000, Weighted Average Common Shares Outstanding = 100,000. Calculate the earnings per share (EPS).

16 / 40

XYZ Ltd. had net sales of ₦900,000, cost of goods sold of ₦600,000, and operating expenses of ₦200,000. Calculate the operating profit margin.

17 / 40

BC Ltd. reported the following: Total Revenue = ₦750,000, Cost of Goods Sold = ₦450,000, Administrative Expenses = ₦100,000, and Selling Expenses = ₦50,000. Calculate the operating income.

18 / 40

If a bond with a face value of ₦1,000 is issued at a premium for ₦1,200 and it matures in 5 years, what is the annual amortization of the premium using the straight-line method?

19 / 40

XYZ Ltd. had the following balances: Cash = ₦60,000, Accounts Receivable = ₦80,000, Inventory = ₦100,000, Accounts Payable = ₦70,000, and Short-term Notes Payable = ₦50,000. Calculate the quick ratio.

20 / 40

ABC Ltd. had the following data: Total Sales = ₦2,000,000, Cost of Goods Sold = ₦1,200,000, Operating Expenses = ₦500,000, and Interest Expense = ₦100,000. Calculate the times interest earned ratio.

21 / 40

ABC Ltd. issued 10,000 shares of common stock with a par value of ₦10 per share at ₦15 per share. What is the amount of additional paid-in capital?

22 / 40

ABC Ltd. had the following data: Net Income = ₦600,000, Dividends Paid = ₦100,000, and Retained Earnings at the beginning of the period = ₦1,200,000. Calculate the retained earnings at the end of the period.

23 / 40

XYZ Ltd. had the following balances: Total Assets = ₦1,500,000, Total Liabilities = ₦600,000, and Preferred Stock = ₦100,000. Calculate the book value per share if there are 100,000 common shares outstanding.

24 / 40

XYZ Ltd. purchased equipment for ₦500,000 and paid ₦20,000 for installation. The equipment has an estimated useful life of 10 years and a residual value of ₦50,000. Using the straight-line method, what is the annual depreciation expense?

25 / 40

ABC Ltd. has an interest coverage ratio of 5 times, and its interest expense is ₦40,000. Calculate the company's earnings before interest and taxes (EBIT).

26 / 40

ABC Ltd. had the following balances: Total Sales = ₦1,000,000, Accounts Receivable = ₦80,000, and Average Accounts Receivable = ₦75,000. Calculate the accounts receivable turnover ratio.

27 / 40

ABC Ltd. had the following data: Total Revenue = ₦1,800,000, Cost of Goods Sold = ₦1,200,000, Operating Expenses = ₦400,000, and Income Tax Expense = ₦60,000. Calculate the operating income.

28 / 40

XYZ Ltd. issued shares of ₦20 par value at a price of ₦25. If the company issued 10,000 shares, calculate the additional paid-in capital.

29 / 40

A company has a current ratio of 2.5 and current liabilities of ₦200,000. What is the amount of current assets?

30 / 40

ABC Ltd. had the following data: Net Income = ₦700,000, Dividends Paid = ₦100,000, and Retained Earnings at the beginning of the period = ₦1,000,000. Calculate the retained earnings at the end of the period.

31 / 40

A company issued 5-year bonds with a face value of ₦2,000,000 at 8% interest, payable annually. If the market rate of interest is 10%, what is the present value of the bonds?

32 / 40

ABC Ltd. declared and paid dividends of ₦50,000. If the beginning retained earnings were ₦300,000 and the net income for the year was ₦80,000, what is the ending retained earnings?

33 / 40

XYZ Ltd. had the following data: Total Sales = ₦1,200,000, Sales Returns = ₦100,000, Cost of Goods Sold = ₦600,000, Operating Expenses = ₦300,000. Calculate the gross profit margin.

34 / 40

A company reported the following: Revenue = ₦900,000, Cost of Goods Sold = ₦500,000, Operating Expenses = ₦250,000, and Interest Expense = ₦50,000. What is the operating profit?

35 / 40

XYZ Ltd. had the following balances: Total Assets = ₦800,000, Total Liabilities = ₦300,000, and Total Equity = ₦500,000. Calculate the debt-to-equity ratio.

36 / 40

XYZ Ltd. had the following data: Sales = ₦1,000,000, Variable Costs = ₦600,000, Fixed Costs = ₦250,000. What is the break-even point in sales revenue?

37 / 40

The ending balance of accounts receivable is ₦90,000, and the beginning balance was ₦70,000. If the total sales were ₦400,000, what was the cash collected from customers during the year?

38 / 40

A company had total sales of ₦800,000, sales returns and allowances of ₦50,000, and sales discounts of ₦20,000. What is the net sales?

39 / 40

XYZ Ltd. has a dividend payout ratio of 30%, and its net income is ₦600,000. Calculate the amount of dividends paid.

40 / 40

XYZ Ltd. had the following balances: Total Assets = ₦3,000,000, Total Liabilities = ₦1,200,000, and Preferred Stock = ₦400,000. Calculate the book value per share if there are 200,000 common shares outstanding.

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