1. The two fundamental books of accounting are

A. return inwards and outwards
B. journal and ledger
C. discounts allowed and received
D. credit note and debit note

2. Which of the following is a capital expenditure?

A. extension of building
B. repairs of generator
C. purchase of stock
D. purchase of stationery

3.Expenses accrued at the end of the accounting year is treated in the balance sheets as

A. current assets
B. current liability
C. fixed assets
D. long-term liability

4. Another name for owner's equity is

A. loan
B. debtors
C. capital
D. overdraft

5. The reduction in value of goodwill is

A. amortization
B. appreciation
C. depletion
D. depreciation

Use the following information to answer questions 6 to 8

	GH
Opening Stock	4,000
Purchase	12,000
Carriage inwards	300
Returns outwards	322
Sales	20,000
Closing stock	6,000

6. The cost of gods sold is

(A) GH¢16,300
(b) GH¢15,978
(c) 10,022
(D) GH¢9,978

7. The cost of gods available for sale is

(A) GH¢16,300
(b) GH¢15,978
(c) GH¢10,022
(d) GH¢9,978

8. The gross profit is

(A) GH¢12,300
(b) GH¢11,978
(C) GH¢10,022
(d) GH¢9,978

9. Which of the following is not recorded in a partnership appropriation account?

A. interest on capital
B. partners drawings
C. share of profit
D. interest on drawings

10. When a transaction is completely left out from the books, it is an error of

A. commission
B. omission
C. principle
D. compensation

11. Which of the following is not a subsidiary book?

A. sales day book
B. purchases day book
C. general journal
D. trial balance

12. In departmental accounts, rent is apportioned on the basis of

A. purchases
B. floor area occupied
C. numbers of personnel in each department
D. volume of sales

13. The document used in government accounting to show evidence of cash receipts payments is the

A. budget
B. warrant
C. vote
D. voucher

14. Which of the following errors will affect the totals of a trial balance?

A. compensating error
B. complete reversal of entry
C. error in addition
D. error of original entry

Use the following information to answer questions 15 to 17. Okoro and Osula are in partnership sharing profits and losses in the ratio 3 : 2 respectively. Their respective capital were ₦7,000 and ₦5,000. Interest on capital was 5% and interest on drawings was 10%. The net profit was ₦30,000.

15. Okoro's share of the profit is

A. ₦17,070
B. ₦16,070
C. ₦11,380
D. ₦10,000

16. Osula's interest on drawings is

A. ₦2,000
B. ₦750
C. ₦700
D. ₦500

17. The total interest on capital is

A. ₦4,000
B. 2,740
C. ₦2,000
D. ₦750

18. Which of the following is a subsidiary book?

A. cash book
B. bank statement
C. control accounts
D. trial balance

19. Goods returned by the buyer is recorded in the seller's book as

A. carriage inwards
B. carriage outwards
C. returns outwards
D. returns inwards

20. The method of ascertaining capital from income record is by preparing the

A. cash book
B. statement of affairs
C. suspense account
D. control account

21. A petty cashier operates with an imprest of D1,000 per week. At the end of the week he had disbursed D920. How much is needed to restore the imprest?

A. D1,920
B. D1,000
C. D920
D. D80

22. Accumulated fund is also referred to as

A. surplus
B. profit
C. deficit
D. capital

23. Subscriptions owed by members of a club is a/an

A. asset
B. liability
C. profit
D. surplus

24. Prime cost is derived by adding i. cost of raw materials consumed ii. indirect expenses iii. direct labour iv. factory expenses v. work-in-progress vi. direct expenses

A. i, ii and iv
B. i, iii and vi
C. iv, v and vi
D. ii, iii and v

25. The document from which entries are transferred to the purchases day book is the

A. waybill
B. credit note
C. receipt
D. invoice

26. A bookkeeper debited Motor Vehicle Account instead of Motor Expenses Account. This is an error of

A. commission
B. original entry
C. complete reversal of entry
D. principle

27. John received a cheque from Dawda, a debtor, in payment for goods purchased by Dawda on credit. The transaction will be recorded in John's

A. cash book and sales ledger
B. nominal ledger and sales ledger
C. cash book and purchases ledger
D. nominal ledger and purchases ledger

Use the following information to answer questions 28 and 29

	=N=
Prime cost	4,000
Factory overhead	6,000
Stock on 1/1/09 work-in-progress	1,000
Stock on 31/12/09 work-in-progress	2,000
Return inwards	800
Sales	6,000

28. Cost of production is

A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦6,000

29. Net sales for the period is

A. ₦20.000
B. ₦20,8000
C. ₦19,200
D. ₦10,000

30. The total value received by company as consideration for shares issued constitutes

A. paid-up capital
B. authorized capital
C. working capital
D. capital employed

31. The first calculating machine in data processing was

A. abacus
B. pascal
C. punched cards
D. digital

32. The going concern concept assumes that

A. every transaction is represented by a debit and credit entry
B. the currency much not change
C. the firm is a legal entity
D. the business will continue to operate indefinitely

33. Which of the following is not a purpose for which share premium may be utilized?

A. issuing fully paid bonus share
B. writing off preliminary expenses
C. settling salesman commission
D. providing for redeemable preference shares

34. A debenture is

A. a loan capital raised by a company
B. money gives to a company as a gift
C. accrued expenses
D. share capital

35. The concept which deals with the exclusion of trivial items in the accounting records is

A. constituency
B. going concern
C. materiality
D. money measurement

36. Which of the following is not an example of capital reserve?

A. share premium
B. retained profits
C. surplus on revaluation of assets
D. pre-incorporation profits

37. Goods sent to branch are recorded in the head office's books at i. selling price ii. cost price plus makeup percentage iii. cost price

A. i and ii
B. i and iii
C. ii and iii
D. i, ii and iii

38. Computer memory sizes are measured in

A. kilometers
B. kilowatts
C. kilobytes
D. centimetres

39. Rent owed by a department is treated in the Balance sheet as

A. asset of the business
B. asset of the department
C. liability of the business
D. liability of the department

40. When shares are issued to the public and the issuing company has not requested for payments, it is referred to as

A. authorized capital
B. paid-up capital
C. uncalled capital
D. unissued capital

Use the following information to answer questions 41 and 42

Ogogo’s Sales Ledger Control Account

			D														D
Balance b/d			25,180							Discount allowed							1,936
Sale			43,220							Sales returns							1,884
Dishonoured cheque			542							Cash received from customers							xxx
										Balance c/d							5,122
			68,942														68,942

41. Net sales is

A. D41,878
B. D41,336
C. D4`,284
D. 39,400

42. The total cash received from customer is

A. D68,942
B. D60,000
C. D43,220
D. D41,336

43. The diagrammatic representation of the workings of the computer program is

A. flow chart
B. desktop
C. keyboard
D. byte

44. The process of recording financial transactions of government is

A. management accounting
B. financial accounting
C. cost accounting
D. public sector accounting

45. The bank statement shows a debit balance of Le 475. After the entry of an uncredited of Le Le 800, the new balance is

A. Le 325 overdraft
B. Le 325
C. Le 1,275
D. Le 1,275 overdraft

46. The business entity concept

A. seperates the owner's transactions from the business transactions
B. records transactions outside the business
C. does not seperate the owner's transactions from the business transactions
D. involves other business transactions

47. Which of the following is not used in Public accounting?

A. cash book
B. trial balance
C. profit and loss account
D. bank reconciliation statement

48. The concept which states that assets are not to be recorded at their current market value is

A. money measurement
B. materiality
C. cost
D. entity

49. Provision for depreciation on delivery van is charged to

A. trading account
B. profit and loss account
C. appropriation account
D. manufacturing account

50. Which of the following date lines is correct for a profit and loss account?

A. for the year ended 31st December 2009
B. as 31st December 2009
C. for the period 31st December 2009
D. as at the year 2009

Question	Answer	Question	Answer
1	B	26	D
2	A	27	A
3	C	28	B
4	D	29	C
5	D	30	A
6	B	31	A
7	C	32	D
8	—	33	C
9	B	34	A
10	D	35	C
11	B	36	D
12	D	37	D
13	D	38	C
14	C	39	C
15	A	40	C
16	D	41	B
17	B	42	B
18	A	43	A
19	D	44	D
20	B	45	B
21	C	46	A
22	D	47	C
23	A	48	C
24	B	49	B
25	D	50	A