Customers use the financial position of a company to
Answer
(A)
assess the financial position of the business
2
The claim on the assets of a business by outsiders is
Answer
(B)
liabilities
3
A document sent by a bank to its current account customers detailing their transactions over a given period is
Answer
(B)
bank statement
4
Which of the following items will not be entered in the adjusted cash book?
Answer
(C)
Uncredited cheques
5
If a petty cashier has a cash float of Le 39,000 and Le 37,500 is spent, he will be reimbursed with
Answer
(C)
Le 37,500
6
A suspense account is used in the
Answer
(B)
correction of errors
7
A credit purchase of N200 from P. Osae was posted to the account of P. Osei. This is an error of
Answer
(B)
commission
8
Discount allowed on goods invoiced at N100,000 was calculated at the rate of 20% instead of 10%. The error is corrected by debiting
Answer
(C)
customer's account with N10,000, crediting discount allowed with N10,000
9
The balance sheet equation shows
Answer
(C)
assets and sources of financing them
10
The effect on profit when the closing stock is understated is
Answer
(B)
decrease in profit
11
Which of the following describes a trial balance?
Answer
(C)
It is a list of accounting balances on the books
12
The accounts of Jute Enterprise in the books of a supplier will be a
Answer
(B)
personal account in the sales ledger
13
Account payable is classified as a
Answer
(C)
current liability
14
The accounting concept that provides that accounting statements should not be influenced by personal opinion is
Answer
(C)
objectivity
15
Which of the following accounts are found in the nominal ledger?
I. Advertising
ll.Motor repairs
lll. Additions to the motor vehicle
Answer
(C)
objectivity
16
The prudence concept demands that
Answer
(A)
care is exercised in recognition of profit
17
Carriage outward expenses of a business are treated in the
Answer
(C)
profit and loss account
18
The cost of transporting purchased goods t0 the warehouse is charged to the
Answer
(C)
trading account
19
An organization purchased a piece of equipment for N112,000. It is expected to be used for 6 years then sold for N16,000. What is the annual amount of depreciation, if the straight-line method is used?
Answer
(A)
N16,000
20
Use the following information to answer the question below
Sales ledger balances 01/06/12------ 9,000
30/06/12------------------------------------30,000
Total for the month: Cash sales----- 10,000
Returns inwards --------------------------3,000
Cheque dishonoured-------------------- 4,000
The total sales for the month is?
Answer
(C)
30,000
21
Use the following information to answer the question below
Sales ledger balances 01/06/12------ 9,000
30/06/12------------------------------------30,000
Total for the month: Cash sales----- 10,000
Returns inwards --------------------------3,000
Cheque dishonoured-------------------- 4,000
The credit sales for the month is?
Answer
(C)
20,000
22
The excess of the market value of goods produced over the cost of production is
Answer
(A)
profit on manufacturing
23
Factory wages from part of
Answer
(C)
overhead cost
24
The production cost of a manufacturing firm is made up of
Answer
(B)
factory overheads and prime cost
25
In a manufacturing enterprise depreciation of plant is treated in the
Answer
(C)
manufacturing account
26
The purpose of keeping Sales and Purchases Ledger Control Account is to
Answer
(C)
verify total debtors and total creditors balances
27
Which of the following items will appear in the Total Creditors Account?
Answer
(A)
Discount allowed
28
A disadvantage of single entry system of book-keeping is that
Answer
(B)
it is difficult to determine profit for the period
29
Which of the following accounts or statements is used to determine credit purchase figures in incomplete records?
Answer
(B)
Control Account
30
A trader sells goods at an average margin of 20%. His cost of sales for the month amounted to N720,000. What is his profit figure?
Answer
(B)
N864,000
31
Donations to a club are
Answer
(A)
credited to the Income and Expenditure Account
32
A statement of affairs shows
Answer
(C)
financial position
33
In a not-for-profit making organization, the Receipts and Payments Accounts is the equivalent of
Answer
(C)
Cash Book
34
Where there is no agreement between the partners, the Partnership Act states that
Answer
(B)
profit and losses are to be shared in proportion to their capital
35
Interest on partners drawings are debited in the
Answer
(A)
partners current accounts and credited to the appropriation account
36
Goodwill may be brought into the books when
Answer
(D)
a new partner is admitted
37
Working capital is the excess of
Answer
(D)
current assests over current
38
Share premium is classified in the balance sheet as
Answer
(B)
capital reserve
39
Use the following information to answer the question below
Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500
The percentage of gross profit to sales is
Answer
(B)
38.17%
40
Use the following information to answer the question below
Use the following information to answer the question below
Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500
What is the rate of stock turnover?
Answer
(D)
4 times
41
When allotment of shares is made applicants for shares of a company become
Answer
(B)
creditors
42
The objective of a departmental accounts is to ascertain the
Answer
(A)
number of staff in the department
43
In departmental accounting, when goods are sent from one department to another for sale the transaction is treated as
Answer
(C)
intra-departmental purchases
44
A branch that keeps its own records prepares the records of transactions with the head office in the
Answer
(A)
Branch Current Account
45
The accounting entries when goods are sold on credit at the branch are debit
Answer
(B)
Branch Current Account; credit Head Office Current Account
