The original record containing the details of a transaction which serves as a basis for posting is
Answer
(C)
subsidiary book
2
In the preparation of financial statements, full disclosure of minor events are ignored in line with
Answer
(D)
materiality concept
3
A limitation of the money measurement concept is that
Answer
(C)
important non-monetary activities are not reported
4
Where partners maintain a fluctuating capital account, partners' share of profit is credited to
Answer
(A)
capital account
5
The difference between the market value of goods produced and the cost of production is
Answer
(B)
gross profit on manufacturing
6
Use the following information below to answer this question.
Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D13,000 per annum. A net profit of D34,000 was made for the year.
The residual profit of the business for the year is
Answer
(A)
D47,000
7
Use the following information below to answer this question.
Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D13,000 per annum. A net profit of D34,000 was made for the year.
Attama's share of profit is
Answer
(C)
D12,000
8
Reducing balance method charges depreciating as fixed percentage of the
Answer
(A)
net book value of asset
9
Goods returned to the supplier is recorded in the accounts as: debit
Net profit of a sole proprietor is transferred to the
Answer
(C)
capital account
11
Accounting evolved out of the need of businesses for
Answer
(A)
profit making
12
Sales account was undercast by GH¢ 1,000. When this is corrected, both the gross profit and the net profit would
Answer
(B)
increase by GH¢l,000
13
The stock turnover period is
Answer
(A)
88 days
14
The mark-up is
Answer
(C)
44.44%
15
Company as a legal entity means that it
Answer
(B)
can sue and be sued
16
The type of stock recorded in the trading account of a manufacturing business is
Answer
(A)
raw material
17
Accounts of fixed assets are kept in the
Answer
(D)
general ledger
18
Recurrent expenditure of a local government include
Answer
(D)
purchase of office stationery
19
The accounting principle of double entry states that
Answer
(C)
every debit entry must have a corresponding credit entry
20
Lima paid off debt of D2,500 owed to Dongo by cash. The entries in lima's book are: debit
Answer
(B)
Dongo D2,500; credit cash D2,500
21
The petty cash account has an imprest of GH¢36,000 and a debit balance of GH¢10,000 at the end of the month.The reimbursement required would be
Answer
(C)
GH¢26,000
22
Commercial activities undertaken by a social club to raise funds include
Answer
(B)
bar
23
The final stage of accounting process is
Answer
(C)
reporting
24
The value of goods sent to a branch is debited to the
Answer
(A)
goods sent to branch account
25
The major source of revenue for central/federal government is
Answer
(B)
excise duty
26
A business includes 50% mark-up on all its products. This would mean margin of
Answer
(D)
33 1/3%
27
Sales for the period is
Answer
(A)
GH¢234,400
28
Other operating expenses for the period is
Answer
(C)
GH¢24,700
29
All cash transactions of a not-for-profit making organization are recorded in
Answer
(B)
income and expenditure account
30
Subsidiary books of account are used to record transactions
Answer
(D)
without source documents
31
Members of a not-for-profit making organization
Answer
(B)
do not receive surplus at the end of the year
32
Accounting information that is useful for the intended purpose and would make a difference in decision making is
Answer
(A)
comparable
33
Manufacturing account is prepared to determine the
Answer
(B)
cost of goods produced
34
The concept the enables a business to determine the actual profit or loss for a particular period is
Answer
(A)
accrual concept
35
An amount set aside out of profit for a specific purpose is a
Answer
(A)
reserve
36
Payment to creditors is
Answer
(C)
₦ 1,333,000
37
Amount owed to creditors on 31/12/19 is
Answer
(C)
₦ 316,000
38
The objective of preparing departmental account is to determine the
Answer
(C)
capital employed by each department
39
The partner who partakes in the management of the firm and assumes personal responsibility for the firm's debts is a
Answer
(A)
general partner
40
Acid test ratio of a firm measures the
Answer
(C)
liquidity of a firm
41
Use the following information to answer this question.
Cost of assets (01/01/18) ₦ 600,000. Annual depreciation charge is 15% on reducing balance basis.
Depreciation for the year 2019 is
Answer
(D)
₦76,500
42
Use the following information to answer this question.
Cost of assets (01/01/18) ₦ 600,000. Annual depreciation charge is 15% on reducing balance basis.
The net book value of the asset at 31/12/19 is
Answer
(C)
₦433,500
43
Wages accrued is shown in the balance sheet as
Answer
(D)
a liability
44
Provision is made in the accounts when the amount involved in the anticipated loss is
Answer
(C)
not certain
45
Accounting concepts are rules of accounting which are to be
Answer
(C)
followed in the preparation of financial statements
