The following are importance of branch account except
Answer
(A)
it allows fraud and wastage of resources
2
The use of three column cash book is determined by
Answer
(D)
cash discount
3
The authority warrant issued prior to the approval of the appropriate bill at the begining of the year
Answer
(D)
provisional general warrant
4
The following appears in the trading account except
Answer
(C)
carriage outward
5
₦
Debtors opening
4000
Debtors closing
1500
Cash received from debtors
8500
Bad debts written off
350
Discount allowed
500
Discount received
1000
What is the amount of sales for the year?
Answer
(A)
₦6850
6
The principle of double entry developed from the axioms of accounting equation is given as
Answer
(C)
Liabilities + Equity = Assets
7
A part of public company's profit belonging to the shareholders is
Answer
(C)
dividends
8
Accounting entry for dissolution expenses is
Answer
(C)
Dr: Realization account; Cr: Cash account
9
One of the options below is not the source of income for non - profit organization
Answer
(C)
subscription/dues
10
Which of these is the main source document for recording cash paid into bank?
Answer
(D)
pay-in-slip
11
#
Stock Jan 1
2600
Purchases
4000
Carriage inwards
500
Sales
9000
Carriage outwards
500
Determine the net profit
Answer
(D)
#1,400
12
Subscription in advance is treated in the balance sheet as a
Answer
(D)
current liability
13
₦
Balance as per cash book
5467
Uncredited cheques
4410
Unpresented cheques
19404
The balance as per bank statement is
Answer
(A)
₦20,461
14
When goods are received from head office, head office will be credited while
Answer
(D)
purchases will be debited
15
Changes in the profit sharing ratio may occur as a result of
I. skill contributed by partners
II. health status
III. old age
IV. Intangible asset increase
Answer
(C)
I, II and III
16
Given:
I. Cash refunds
II. Debit note issued
III. Dishnoured cheque
IV. Purchases
The item on the credit side of purchase ledger control account includes
Answer
(B)
I and IV only
17
Given:
I. It records subscription in arrears
II. Payments of liabilities is effected
III. The account does not show if cash payment is revenue or capital expenditure
IV. It performs the same function as cash book
The features of receipts and payment account includes:
Answer
(C)
II, III and IV
18
Which of the following is used to service all operations of government?
Answer
(B)
consolidated revenue fund
19
The effect of transaction when cash is paid into the bank is?
Answer
(B)
cash balance decrease and bank balance increase
20
Which of these is not a subsidiary books?
Answer
(C)
credit note
21
Salaries in arrears is treated in the balance sheet as a
Answer
(B)
current liability
22
Capital for a profit making organization is generated through
Answer
(C)
shares
23
One of the options below have the same features as the profit and loss account in non-profit organization
Answer
(C)
income and expenditure account
24
₦
Plant and Machinery
190000
Motor Vehicle
170000
Stock
60000
Current Liabilities
50000
Purchase consideration
40000
The goodwill is?
Answer
(B)
₦30,000
25
Which of these is not method of stock valuation?
Answer
(C)
Standard method
26
An evidence of payment issued to a government ministry by a revenue collector is
Answer
(D)
receipt voucher
27
The account where the profit are distributed to the partner in their profit sharing ratio in partnership
Answer
(A)
appropriation account
28
The main purpose of transaction file is?
Answer
(D)
to update master files
29
A double entry for a transaction that offsets one amount against another on both sides of the cashbook is a
Answer
(D)
contra entry
30
When starting with the cash book balance in preparing the bank reconciliation statement, the followings are added except
Answer
(A)
uncredited cheque
31
Discount allowed is enjoyed by
Answer
(B)
customers
32
In manufacturing, depreciation of office machine is charged to
Answer
(D)
profit and loss account
33
₦
₦
Bal. b/f
3,250
Bal. b/f.
215
Sales
19,075
Bank
16,387.50
Dishonoured cheque
625
Discount
862.50
Stopped cheque
250
Returns inwards
325
Bal c/d
230
Set off
900
Bal c/d
4740
23,430
23430
Bal b/d
4740
Bal b/d
230
Dr. Sales Ledger Control Account . Cr
The amount ₦16,378.50 described as "Bank" represents
Answer
(C)
receipts from all debtors of the business
34
Dr. Sales Ledger Control Account . Cr
₦
₦
Bal b/f
3,250
Bal b/f
125
Sales
19,075
Bank
16,387.50
Dishonoured cheque
625
Discount
862.50
Stopped cheque
250
Returns inwards
325
Bal c/d
230
Set off
900
Bal c/d
4740
23430
23430
Bal b/d
4740
Bal b/d
230
The amount ₦19,075 represents
Answer
(C)
credit sales
35
An advantage of FIFO method of stock valuation is that
Answer
(B)
its flow of cost is in sequence with the flow of stock
36
When expenses are paid on behalf of the venture, the accounting entries is to debit
Answer
(C)
joint venture account and credit bank account
37
The discount column on the left-hand side of cash book represents a discount
Answer
(C)
allowed to a debtor
38
Goodwill can be introduced when
Answer
(D)
a new member is admitted
39
Which fund is used to meet unforeseen or urgent expenditure
Answer
(B)
contigencies fund
40
Given:
I. Settlement of debts
II. Cessation of business
III. Introduction of assets
IV. Disposal of assets
Which of these constitutes dissolution of partnership?
Answer
(B)
I,II and IV only
41
Bello withdraws cash from bank to office, this is called ---------- entry
Answer
(B)
contra
42
Which of the following is recorded in the folio column of the journal?
Answer
(A)
particulars of transactions
43
Dairo and Segun are in partnership sharing profits and losses in the ratio 2:3 respectively. The information below relates to their business for the year ended 31st December, 2018.
Drawings:
₦
Dairo
12000
Segun
18000
Capital
Dairo
120000
Segun
60000
- Interest on drawings 10%
- Interest on capital 5%
- Profit for the year ₦36,000
- Salary: Segun ₦10,000
The interest on Dairo's drawings is
Answer
(B)
₦1,200
44
Dairo and Segun are in partnership sharing profits and losses in the ratio 2:3 respectively. The information below relates to their business for the year ended 31st December, 2018.
Drawings:
₦
Dairo
12000
Segun
18000
Capital:
Dairo
120000
Segun
60000
- Interest on drawings 10%
- Interest on capital 5%
- Profit for the year ₦36,000
- Salary: Segun ₦10,000
Segun's share of profit is
Answer
(A)
₦12,000
45
Which of the following is prepared to ascertain the trader's capital under incomplete records?
Answer
(A)
statement of affairs
46
In the absence of a partnership agreement, a loan given to the partnership by a partner attracts interest of
Answer
(B)
5%
47
The journal has the following headings except
Answer
(C)
discount
48
The part of capital issued only at the time of liquidation of the company is
Answer
(D)
reserved capital
49
Which of the following is not charged to manufacturing account?
Answer
(D)
distribution expenses
50
The authority to transfer fund from one head to another within the same organization is called
Answer
(D)
virement
51
Another name for control accounts is
Answer
(A)
total account
52
Which of the following concepts recognizes the principle of double entry?
Answer
(D)
dual aspect
53
Danladi Bako's Statement of Affairs as at 30/06/17
₦
₦
Capital
??
Fixtures and fittings
4,000
Stock
20,500
Sundry debtors
40,000
Creditors
18,000
Bank
??
78,650
78,650
What is his bank balance as at 30/06/17?
Answer
(A)
₦14,150
54
Danladi Bako's Statement of Affairs as at 30/06/17
₦
₦
Capital
??
Fixtures and fittings
4,000
Stock
20,500
Sundry debtors
40,000
Creditors
18,000
Bank
??
78650
78650
What is the value of Dalandi Bako's capital?
Answer
(D)
₦60,650
55
The accounting system in which only one aspect of transaction is recorded is
Answer
(A)
single entry
56
Which of the following is used in the public sector to monitor or control government expenditure?
Answer
(D)
vote book
57
Profit expressed in relation to cost of goods sold is
Answer
(D)
mark -up
58
The document issued by a revenue collector as evidence of payment to a government ministry is a
Answer
(A)
receipt voucher card
59
When the goods are sold on credit to a buyer, the account receivable account will be
Answer
(C)
debited
60
Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% prefrence shares of ₦1 each fully paid.
₦
Net profit for the year
90,000
Interim dividends paid:
Ordinary shares
25,000
Profit and loss appropriation b/f
10,000
Goodwill written off
1,000
The amount of preference shares dividends payable at the end of the year is
Answer
(C)
₦7,500
61
Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% prefrence shares of ₦1 each fully paid.
₦
Net profit for the year
90,000
Interim dividends paid:
Ordinary shares
25,000
Profit and loss appropriation b/f
10,000
Goodwill written off
1,000
At the end of the period, what is the balance of the profit and loss appropriation account?
Answer
(A)
₦66,5000
62
The document which is legal charter of a company that defines the limits of a company's field of operation is known as
Answer
(D)
memorandum of association
63
₦
Manufacturing wages
42,000
Factory rent
880
Raw materials: Stock 1/1/16
1,000
Purchases
16,000
Stock 31/12/16
1,400
Depreciation of Plants and Machinery
800
Royalties
300
Indirect wages
18,000
General indirect expenses
620
Calculate the cost of raw materials consumed
Answer
(A)
₦15,600
64
₦
Manufacturing wages
42000
Factory rent
880
Raw materials: Stock 1/1/16
1000
Purchases
16000
Stock 31/12/16
1400
Depreciation of Plants and Machinery
800
Royalties
300
Indirect wages
18,000
General indirect expenses
620
The prime cost is
Answer
(A)
₦57,900
65
₦
Manufacturing wages
42,000
Factory rent
880
Raw materials: Stock 1/1/16
1,000
Purchases
16,000
Stock 31/12/16
1,400
Depreciation of Plants and Machinery
800
Royalties
300
Indirect wages
18,000
General indirect expenses
620
What is the value of the indirect manufacturing cost?
Answer
(C)
₦20,300
66
Current assets are shown in the balance sheet in order of performance as
Answer
(B)
stock, debtors, bank and cash
67
Which of the following is found on the credit side of a profit and loss account?
Answer
(B)
dividend received
68
Shares are said to be authorized when they are
Answer
(C)
offered for sale
69
The assumption that a business will continue to exist into the foreseeanle future is recognized by a concept called
Answer
(C)
going concern
70
The short term solvency of a company is determined with ------- ratio
Answer
(D)
current
71
Which of the following is charged to trading account?
Answer
(C)
carriage inwards
72
Which of the following expenses is *not* apportined in proportion to turnover?
Answer
(A)
rent
73
The purchases ledger control account is also known as
Answer
(C)
creditors control account
74
The Accounting term used to describe a partnership firm that stops operation and disposes its assets is
Answer
(D)
Dissolution
75
Income and Expenditure account is the same as the --------- of a sole trader
