which of the following factors has aided the development of accounting?
Answer
(C)
the growth in size of businesses and separation of ownership and management
2
Which of the following concept stipulates that accounting profit is the difference between revenue and expenses?
Answer
(A)
Accrual concept
3
An effective accounting system should provide information
Answer
(C)
on internal and external reporting for managers and third parties
4
Which of the following accounting records are source documents?
Answer
(D)
sales invoice and debit note
5
Given: Motor van, N3,600, Premises, N5,000; Loan from R. Nwaeke, N1,000; Cash at bank; N1,650; stock of goods N4,800; Creditors, N2,560; Cash in hand, N250 and debtors N6,910. calculate the capital figure.
Answer
(B)
N18,650
6
Which of the following transaction is BEST recorded in the general journal?
Answer
(D)
Transfer of cash from head office branch
7
Diamond Ringo business was started when Mr. Diamond brought in a cheque of N500,000, which was paid into the bank account. Which of the following entries properly records the transaction?
Answer
(B)
Bank account was debited with N500,000 and capital account was credited with N500,000
8
One major advantage of ledger is that it
Answer
(D)
can be used by any type of business
9
A trail balance is usually prepared by an accountant from account balances in the ledger for the purpose of
Answer
(B)
testing arithmetical accuracies of the ledger account balances
10
What are the advantages of an imprest petty cash book?
I cheques can be drawn easily
II A cheque on the use of cash
III Liability of the petty cashier is limited to the value of petty cash
IV Loses through the petty cashier can be minimized
Answer
(C)
I, III and IV only
11
Bola, UTC's regular customer, owed N1,00 on account of a radio bought. If he sent in a cheque for N1,500, UTC would send him a
Answer
(A)
credit note
12
A payment of cash of N20 to John was entered on the receipt side of the cash book in error and credited to John's account. Which of the following journal entry can be used to correct the error?
Answer
(C)
John: N20 Dr, cash: N20 Cr
13
The following represent extracts from the trading account of a retail outlet for a given month:
Opening stock N2,400
Closing stock N6,400
Other expenses N2,000
Sales N11,000
Profit N900
What is the purchase figure for the month?
Answer
(B)
N12,100
14
Adama's bank account showed an overdraft of N600 on 31st march. On going through the account, it was discovered that the N1,080 paid into the account on 29th March had not been credited. what should be the balance in Adama's cash accounts?
Answer
(D)
N480 Cr
15
Why are adjustments in the profit and loss account necessary?
Answer
(B)
To ascertain the actual expenses incurred and income earned during the year
16
Sales ledger control account contains the total amount in respect of
Answer
(B)
debtors
17
The purchase ledger control account of a company had an opening balance of N45,600 credit and closing balance of N72,600 credit. The company made payments of 437,000 to credit suppliers during the period: and had discount received of N18,600 on this account. What were the credit purchase for the period?
Answer
(B)
N482,600
18
The starting point for the production of accounts from incomplete records is to
Answer
(D)
prepare an opening statement of affairs
19
I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
Compute the average amount of stock in hand at cost price
Answer
(C)
N3,680
20
I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
The net profit for the year is
Answer
(C)
N3,200
21
Given:
Prime cost N220,000
Factory cost N32,000
work in progress at beginning N25,000
work in progress at close N19,000
Administrative expenses N21,000
Determine the production cost
Answer
(C)
N258,000
22
The factory cost of producing goods is made up of
Answer
(A)
prime cost and factory overhead
23
The following information is provided for amusa company limited , a manufacturer
Prime cost N999,000
Manufacturing overhead N132,000
Closing work in progress N75,000
values of finished goods transferred to the
trading account N1,116,000
If including in the manufacturing overhead were rents of N5,000 paid in advance, what is the opening work in progress for the period?
Answer
(D)
N65,000
24
Subscription in arrears are
Answer
(B)
debited to the income and expenditure account and shown as an asset in the balance sheet
25
Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is the
Answer
(C)
income and expenditure account
26
A member of a club paid N1,000 as is subscription for 1993 and N1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the N1,200 subscription will be treated in the balance sheet as
Answer
(B)
current liability
27
Which of the following is a strong feature of partnership?
Answer
(B)
The owners are liable personally for all debts of the business
28
Interest on a partner's drawings is debited to the
Answer
(A)
Partners current account and credited to the profit and loss appropriation account
29
A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be
Answer
(B)
debited to asset revaluation account
30
Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Halidu's share of the profit is
Answer
(C)
N5,400
31
Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Hamed's share of the profit should be
Answer
(B)
credited to partners' current account
32
The conversion of a partners business into a limited liability company affords the
Answer
(B)
limited liability partners the chance of enjoying the limited liability protecction
33
Which of the following ratios gives an idea of the liquidity of a firm?
Answer
(B)
Quick ratio
34
A total of 400,000 shares of N1 each are to be issued by Sariki company Ltd at a price of N1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?
Answer
(A)
N1,000
35
The measure of a company's ability to pays its debts quickly is called
Answer
(C)
acid test ratio
36
Departmental accounts re maintained to ascertain the
Answer
(B)
contribution of each department
37
The Asa branch of Emene company Ltd, made a sales of N549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies, what should be the profit of the branch for the period?
Answer
(C)
N85,380
38
Which of the following statement is correct about the head office current account and the branch current account?
Answer
(D)
the head office current account has a debit balance while the branch current account has a credit balance
39
Which of the following are sources of revenue to state government in Nigeria?
I Statutory allocation
II Fines from customary courts
III Petroleum tax
IV Income tax
IV
Answer
(C)
I and IV
40
Eko Local Government expenditure
Hospital building ---------------------- N200,000
Drugs ---------------------------------- N180,000
Hospital beds and mattresses ------------ N40,000
Doctors' and nurses' salaries ---------- N120,000
Administrative expenses ----------------- N50,000
Capital expenditure is
Answer
(C)
N240,000
41
Eko Local Government expenditure
Hospital building ---------------------- N200,000
Drugs ---------------------------------- N180,000
Hospital beds and mattresses ------------ N40,000
Doctors' and nurses' salaries ---------- N120,000
Administrative expenses ----------------- N50,000
Recurrent expenditure is
Answer
(A)
N390,000
42
A government accounting systems must make sure that
Answer
(B)
all applicable legal provisions are complied with
43
Equity shareholders' fund is
Answer
(A)
N133 000
44
If a 10% dividend is approved, what is the dividend payable to ordinary shareholders?
Answer
(D)
N 8 000
45
A charitable club has the following figures:
N
Subscriptions received in 1991 2 800
Subscriptions unpaid in 1990 300
Subscriptions paid for 1992 150
Subscriptions due 1991 180
How much should be charged to the income and expenditure of this club as subscription for 1991?
