The directors of Olu Ltd. recommended a dividend of 10% on 1,000,000 ordinary share capital of GH¢ 2.00 each. The amount of dividend declared is
Answer
(B)
GH¢ 200,000
2
A computer set bought for #150,000 was disposed for #45,000 after some years of use. The profit on disposal was #7,500. Accumulated depreciation at the time of disposal was
Answer
(C)
#97,500
3
Which of the following terms is not used to describe the total amount stated in the memorandum of association approved by the Registrar of Companies?
Answer
(B)
Issued capital
4
Shares issued below the nominal value are referred to as shares at
Answer
(A)
discount
5
Sulah took two textile materials worth GH¢ 500 from his business for his children's use. This would be treated as
Answer
(A)
drawings.
6
Discounts received are
Answer
(A)
credited to the Profit and Loss Account
7
Below-the-line item in public sector accounting means such an item is
Answer
(B)
not budgeted for in the current fiscal year
8
Which of the following is not part of prime cost of production?
Answer
(A)
depreciation of factory equipment
9
A feature of government accounting is that the
Answer
(B)
Accounts are prepared on a cash basis.
10
A bank statement shows an overdraft of GH¢190,000. Kofi, a debtor, paid GH¢400,000 into the account. The new bank balance is
Answer
(D)
GH¢210,000
11
Use the following information to answer questions 11 and 12.
Receipt and Payments: 31st December, 2016
The total income received for the year is
Answer
(C)
#2,640
12
Use the following information to answer questions 11 and 12.
The surplus for the year is
Answer
(B)
#1,650
13
Capital receipt is collected
Answer
(D)
on sales of motor vehicles
14
Which of the following is a component of prime cost?
Answer
(D)
Royalty
15
The accounting principle that states that, in the preparation of an accounting statement, revenue is recognized as soon as goods are passed on to the customer is the
Answer
(D)
realization concept
16
In departmental accounts, rent is apportioned on the basis of
Answer
(B)
floor area occupied
17
The process of recording the financial transactions of government is
Answer
(C)
public sector accounting
18
A business should not lay claim to any profit before it is earned. This is in accordance with the
Answer
(A)
prudence concept
19
Which of the following errors affects the agreement of a Trial Balance?
Answer
(C)
Wrong addition in the sales account
20
Which of the following is an advantage of the imprest system?
Answer
(C)
Meeting small items of expenditure
21
The document which sets out the internal arrangement for the proper management of a company is the
Answer
(D)
article of association
22
Which of the following is the basis of accounting in public service?
Answer
(D)
Cash
23
Which of the following is not part of the double-entry system?
Answer
(D)
Balance sheet
24
The head office usually issues goods to branches at
Answer
(A)
cost price
25
Receipts and Payments Account of Abalure Youth Club for the year ended 31st December 2018
Subscriptions for 2017 and 2019 received during the year were #180,000 and #150,000, respectively.
The surplus for the year 2018 was
Answer
(A)
#5,235,000
26
In the absence of a partnership agreement, additional capital contributions by partners attract interest of
Answer
(D)
5%
27
Receipts and payments Account of Abalure Youth Club for the year ended 31st December 2018
Subscriptions for 2017 and 2019 received during the year were #180,000 and #150,000 respectively.
Total expenses debited to income and expenditure Account for 2018 was
Answer
(A)
#8,095,000
28
Use the following information to answer the question
The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
The total income for the month is
Answer
(B)
D 278,000.
29
Use the following information to answer the question
The following transactions were recorded in the cash book of Ibusah for the month of February 2019
The balance brought down at the end of the month is
Answer
(B)
D 278,000
30
According to the entity concept, ownership is
Answer
(A)
separated from the business
31
If sales is D 12,000, and the gross profit markup percentage is 25%. What is the cost of sales?
Answer
(A)
D 9,000
32
A suspense account is used to
Answer
(B)
agree the trial balance
33
Which of the following is apportioned in proportion of the purchases of each department?
Answer
(D)
Discounts received
34
The transfer of goods between departments is recorded by debiting
Answer
(C)
the receiving department and crediting the giving department
35
The Chief Accounting Officer of the federation is
Answer
(C)
Accountant General
36
Which of the following is not true of a trial balance?
Answer
(C)
list of account abstracted from a subsidiary ledger to check their agreement with the related control account
37
Use the following information to answer this question
A fixed asset was bought for #60,000 on 1st January, 1997. Depreciation was provided at 10% on cost. It was sold for #16,000 on 30th June, 2001.
The profit or loss sale was
Answer
(A)
17,000 loss
38
Use the following information to answer this question
A fixed asset was bought for #60,000 on 1st January, 1997. Depreciation was provided at 10% on cost. It was sold for #16,000 on 30th June, 2001.
The net book value at the time of sale was
Answer
(C)
#33,000
39
Receipts and payments account discloses
Answer
(C)
capital items
40
In partnership dissolution, an asset taken over by a partner is debited to
Answer
(A)
partners capital account and credited to realization account
41
The objective of a departmental accounts is to ascertain the
Answer
(B)
departmental performance
42
Which of the following describe trial balance?
Answer
(C)
It is a list of accounting balances on the books
43
In bank reconciliation, when a cash book shows a credit balance, uncredited cheques are:
I. deducted from the cash book balance
II. added to the bank statement balance
III. added to the cash book balance
Answer
(A)
I and II only
44
Which of the following is a spreadsheet application?
Answer
(A)
Excel
45
Into how many major types can general-purpose computers be classified?
Answer
(D)
three
46
Cash receipts and payments involving discounts are entered in
Answer
(C)
three-column cash book
47
Which of the following is used before the appropriation bill is approved?
Answer
(C)
provisional general warrant
48
The cost of raw materials consumed is
Answer
(A)
#43,500
49
Prime cost is
Answer
(D)
#49,950
50
Factory cost of production
Answer
(C)
#56,300
51
Production cost is
Answer
(C)
#55,800
52
Use the following information to answer questions 52 to 54
Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being #4,000.
The following transactions took place for a particular month:
Dec 1 petty cash in hand 517
1 petty cash to imprest 3,483
6 Bought notebooks 328
7 Paid wages 914
14 Bought postage stamps 375
16 Paid to J. Thomas, a creditor 536
Amount to be reimbursed at the end of the month is
Answer
(B)
#3,728
53
Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being #4,000.
The following transactions took place for a particular month:
Dec 1 petty cash in hand 517
1 petty cash to imprest 3,483
6 Bought notebooks 328
7 Paid wages 914
14 Bought postage stamps 375
16 Paid to J. Thomas, a creditor 536
Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being #4,000.
The following transactions took place for a particular month:
Dec 1 petty cash in hand 517
1 petty cash to imprest 3,483
6 Bought notebooks 328
7 Paid wages 914
14 Bought postage stamps 375
16 Paid to J. Thomas, a creditor 536
