Which of the following are impersonal accounts ?
I. Investment
II. Creditors
III. Premises
IV. Debtors
V. Salaries
Answer
(D)
III and V
4
Nwoye buys stock and pays by cheque. The entries in the books of Nwoye is Debit
Answer
(B)
Purchases; Credit bank
5
Which of the following errors are errors of commission?
I. A cheque paid to Adam debited to Adam's account.
II. Credit sales to Eva credited to sales account but debited to Eve's account.
III. Furniture repairs debited to furniture account.
IV. Credit purchases from Manu credited to Manu's account.
Answer
(A)
I and II
6
A bank statement shows an overdraft of GH¢ 190,000. Kofi a debtor paid GH¢ 400,000 into the account. The new balance is
Answer
(C)
GH¢ 210,000
7
A petty cash account has an imprest of GH¢ 6,000. If GH¢ 2,000 were left, how much will be re-imbursed at the end of the period?
Answer
(C)
GH¢ 4,000
8
Cash paid to jake, N2,500 was entered on the credit side of his account and debited to cash account. This is an error of
Answer
(C)
Complete reversal of entries
9
One of the purchases invoices of Mr.Dauda showed D96,240 less 12 \(\frac{1}{2}\)% trade discount and cash discount of 20%. Since Mr Dauda paid the amount due within the credit period, the amount paid is
Answer
(C)
D 67,368
10
Bank reconciliation statement is prepared to reconcile the differences between
Answer
(D)
Cash book and bank statement
11
Which of the following items of expense involves actual cash payment?
Answer
(C)
Carriage outwards
12
In the preparation of the trading account of omuya Ltd., the company included credit sales of N18,000 made during the year. The concept guiding this treatment is the
Answer
(B)
Dual aspect concept
13
In accounting context, purchases refer to
Answer
(B)
Goods bought for resale only
14
Which of the following items is a current liability?
Answer
(C)
Bills payable
15
The balance sheet is prepared to reveal
Answer
(B)
The financial position of the business
16
The excess of cost of goods sold over net sales is
Answer
(B)
Gross loss
17
Use the following information to answer this questions.
The balance sheet as at 31st December 2014 will show
Answer
(B)
Current asset of N400
19
Which of the following would result from an increase in the provision for doubtful debts?
Answer
(B)
A decrease in net profit
20
Use the following information to answer this question.
Acquisition cost of computers - Le 80,000
Installation cost - Le 20,000
Estimated residual value - Le 4,000
Estimated useful life - 5 years.
The depreciable value of computers is
Answer
(B)
Le 96,000
21
Use the following information to answer this question.
Acquisition cost of computers - Le 80,000
Installation cost - Le 20,000
Estimated residual value - Le 4,000
Estimated useful life - 5 years.
The total costs of the computers is
Answer
(C)
Le 100,000
22
Which of the following expenses constitutes prime cost?
I. Direct labour cost II. Factory overheads III. Hiring of machine for production IV. Warehouse rent
Answer
(B)
I and III only
23
Partly manufactured goods are treated in the balance sheet of a manufacturing company as
Answer
(A)
Current assets
24
Use the following information to answer this question.
Cash purchase - D 29,641
Creditors 1/1/14 - D 2,473
Creditors 31/12/14 - D 3,117
Cash paid to creditors - D 127,345
Discount received - D 4,211
The credit purchases is
Answer
(A)
D 161,841
25
Use the following information to answer this question.
Cash purchase - D 29,641
Creditors 1/1/14 - D 2,473
Creditors 31/12/14 - D 3,117
Cash paid to creditors - D 127,345
Discount received - D 4,211
The total purchases is
Answer
(D)
D 132,200
26
Offei, a petty trader sold goods for GH¢36,240. The gross profit being 33\(\frac{1}{3}\)% on cost. What was the cost price?
Answer
(C)
GH¢27,180
27
Which of the following is a credit item in an income and expenditure account?
Answer
(B)
Donations
28
Purchases of fixtures and fittings by a club is recorded in the
Answer
(C)
Receipts and payments account and balance sheet
29
The concept which states that the affairs of a business is to be treated as being separate from the private activities of the owner is
Answer
(B)
Business entity concept
30
Where fixed capitals are maintained in a partnership, share profits are
Answer
(B)
Credited to partners current accounts
31
In the absence of a partnership agreement, additional capital contributions by partners attract interest of
Answer
(A)
5%
32
In preparing partnership accounts, interest on drawings is debited to current accounts and credited to
Answer
(B)
Appropriation account
33
When allotments have been fully paid, subscribers are referred to as
Answer
(B)
Applicants
34
Use the following information and answer the question below. Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The subscribed share capital is
Answer
(C)
N200,000
35
Use the following information and answer the question below. Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The unsubscribed share capital is
Answer
(D)
N150,000
36
Use the following information and answer the question below. Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The authorized share capital is
Answer
(A)
N300,000
37
The entries for credit sales at branch where the head office keeps all records are:Debit
