One of the the differences between bookkeeping and accounting is that the former
Answer
(A)
records data while the latter interprets
2
The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is
Answer
(C)
realization
3
A cheque of #5,000 paid to Sulieman had been correctly entered in the cash book but had not been entered in Sulieman's account. To correct this error, debit Sulieman's account and credit
Answer
(B)
bank account
4
Aduke Motors bought three Toyota Hilux vans on cash at the cost of #6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the
Answer
(D)
cash book
5
Which of the following affects the accuracy and authenticity of the trial balance?
Answer
(C)
Error of transposition
6
A ledger is classified into
Answer
(D)
sales, purchases and general
7
The book of account in which information from the source documents are recorded consists of
Answer
(B)
ledger and subsidiary books
8
The accounting entries to record a cheque issued by a business is to
Answer
(B)
credit cash book and debit drawer
9
Given:
If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12 and half percent. Assuming #22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company's cash book?
Answer
(C)
#19,950
10
The major advantage of an imprest system is that it
Answer
(C)
relieves the cheif cashier of the numerous petty cash payments
11
Petty cash book records transactions on
Answer
(C)
both credit and debit sides
12
A major way by which the headquarters guard against fraud in branches on cash remittance is through the introduction of
Which of the following are recorded on the debit side of the cash book
Answer
(C)
1 and V
14
An item credited in the bank statement but yet to be recorded in the firm's cash book is
Answer
(D)
direct deposit
15
The major focus of the trading account is to show
Answer
(B)
gross margin
16
If goods were bought from Tanko at a cost price of #9,000 with a cash discount of 5%, how much will be paid assuming prompt payment was made?
Answer
(B)
#8,550
17
If machine X cost #600,000 with anticipated life span of five years and estimated scrap value of #50,000, using straight line method; depreciation charged for two years will be
In a departmental account, where no basis of apportionment exist, apportionment is
Answer
(D)
on equal basis
31
In a departmental account, the expenses to be apportioned on the basis of turnover is
Answer
(A)
carriage inwards
32
If goods are sent to to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of #100,000?
Answer
(D)
#75,000
33
Hussaina Enterprises sent goods worth #800,000 at cost plus mark-up of 20% to its branch
What is the cost price of the goods sent to the branch
Answer
(B)
#620,000
34
Hussaina Enterprises sent goods worth #800,000 at cost plus mark-up of 20% to its branch
Determine the profit on the goods sent to the branch at profit margin of 25% mark-up
Answer
(D)
#180,000
35
In the absence of a partnership deed, the act stipulates that
Answer
(C)
interest should not be allowed on partners drawings
36
The profit of a branch is usually credited to the
Answer
(C)
head office goods account
37
Where partnership is converted into a limited liability company, current account balances of partners are transferred to a
Answer
(A)
realization account
38
The expenses incurred in purchasing a vehicle is a
Answer
(B)
capital expenditure
39
Payment for shares in excess of amount offered gives rise to
Answer
(C)
capital reserves
40
The details of the share capital which a company is authorized to issue is contained in the
Answer
(C)
Memorandum of Association
41
#800,000 worth of ordinary shares of 50k were issued at #1 each, payable in full on application. The entry in the cash book would be to
Answer
(D)
debit #800,000
42
Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of #1.50k. Application and allotment were received for 900,000 shares at 25k each.
Determine the amount received on application and allotment
Answer
(B)
#225,000
43
Oil and Buns issued to the public 1,300,000 ordinary shares of 75k at a price of #1.50k. Application and allotment were received for 900,000 shares at 25k each.
The book value of issued share capital is
Answer
(D)
#1,950,000
44
The account of government into which all monies are received and from which all expenditures are disbursed is the
Answer
(A)
Federation account
45
In government accounting, the method used which records on the basis of financial entity with self-balancing books instead of entity of proprietorship is
