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

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

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

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

1. The objective of accounting information is enable users to

A. prepare the financial statements
B. value stock
C. make decisions
D. prepare budgets

2. Trade discounts are given for

A. bulk purchases
B. prompt payment
C. quick delivery
D. cash payment

3. When closing stock is overstated, it would reduce,

A. cost of sales and increase gross profit
B. gross profit and increase cost of sales
C. purchases and increases sales
D. sales and increase purchases

4. Which of the following is not a source document?

A. journal paper
B. sales invoice
C. debit note
D. credit note

5. A fixed assets fully written-down by a trader is now considered to be worth ₦5,000. The double entry required to reflect this is debit

A. asset account credit purchase account
B. asset account credit capital account
C. capital account credit asset account
D. capital account credit profit and loss account

6. Which of the following is a book of ordinary entry?

A. ledger
B. balance sheet
C. bank statement
D. sales journal

7. A balance sheet shows only

A. fixed assets and current assets
B. assets and long term liabilities
C. assets and liabilities
D. assets and capital

8. The process of entering transaction from one book to another is

A. Reading
B. posting
C. numbering
D. listing

Use the following information to answer questions 9 and 10

9. The total purchases is

A. GHc 8,700
B. GHc6,800
C. GHc5,500
D. GHc4,800

10. The cost of sales is

A. GHc8,200
B. GHc6,800
C. GHc5,500
D. GHc4,800

11. Which of the following is a trading account item?

A. discount allowed
B. discount received
C. carriage outwards
D. carriage inwards

12. The addition of prime cost and factory overhead is

A. total factory overheads
B. market value of goods produced
C. cost of goods produced
D. work-in-progress

13. Capital receipt is collected

A. on sales of motor vehicle
B. on sales of stock in trade
C. from trade debtors
D. from trading activities

14. Which of the following is an example of factory overheads?

A. salary of marketing officer
B. salary of production officer
C. salary of accounting officer
D. wages of machine operator

15. Osa started business with Le 40,000 cash. The accounting entry is debit

A. cash account; credit capital account
B. capital account; credit cash account
C. purchases account; credit cash account
D. expenses account; credit capital account

16. Branch stock account is used to determine the

A. net value of goods sent to branch
B. gross profit of the branch
C. branch credit sales
D. branch net profit or loss

17. The name given to a budget in public service accounting is

A. vote
B. subvention
C. general order
D. estimate

18. The name given to a budget in public service accounting is

A. vote
B. subvention
C. general order
D. estimate

Use the following information to answer questions 18 to 20

Balance sheet as at 31st December, 2010

18. The amount of working capital is

A. N11,000
B. N7,000
C. 4,000
D. 3,000

19. Working capital ratio is

A. 5:4
B. 5:3
C. 4:5
D. 1:1

20. Acid test ratio is

A. 5:4
B. 5:3
C. 4:5
D. 1:1

21. Which of the following is not prepared by a partnership?

A. trading account
B. profit and loss account
C. income and expenditure account
D. profit and loss appropriation account

22. A partner who only make capital contribution but does not take part in the management of the partnership business is a/an

A. ordinary partner
B. limited partner
C. dormant partner
D. nominal partner

23. Which of the following is a component of prime cost?

A. depreciation
B. royalty
C. factory rent
D. factory electricity

24. The concept which establishes the rule for the periodic recognition of revenue as soon as it is capable of objective measurement is

A. going concern
B. entity
C. consistency
D. realization

25. Rent accrued in 2009 was D140, in 2010, D900 was paid while D160 was outstanding. Rent for 2010 was

A. D1,200
B. D1,060
C. D920
D. D880

26. Which of the following is not an input device?

A. card reader
B. paper top reader
C. alpha-numeric keyboard
D. line partnership

27. The equivalent of income and expenditure account in a trading concern is

A. trading account
B. profit and loss account
C. appropriation account
D. balance sheet

28. The term used to denote the capital of a not-for-profit making organization is

A. annuity fund
B. nominal capital
C. circulating capital
D. accumulated fund

29. The portion of authorized capital that has been allotted to subscribers

A. called up capital
B. paid up capital
C. issued capital
D. nominal capital

30. Partners whose liabilities are restricted to their financial contribution to the partnership in the event of winding up are

A. ordinary partners
B. limited partners
C. dormant partners
D. sleeping partners

31. If creditors at 1\1\10 were Le 3,000; creditors at 31/12/10 Le 5,500 and payments to creditors Le 29,000. The purchases figure for 2010 is

A. Le 34,500
B. Le 32,000
C. Le 31,500
D. Le 26,500

32. Which of the following is not found in the personal ledger?

A. debtors account
B. creditors account
C. capital account
D. nominal account

33. The sales ledger control account is also referred to as

A. bought ledger control account
B. purchases account
C. total debtors account
D. total creditor account

Use the following information to answer questions 34 and 35

The Health Department of Zango Local Government incurred the following expenditure in 2010

34. Capital expenditure for the year was

A. Le 545,000
B. Le 490,000
C. 450,000
D. Le 300,000

35. The amount of recurrent expenditure was

A. Le 245,000
B. Le 175,000
C. 135,000
D. Le 80,000

36. An increases in the provision for doubtful debts results is a\an

A. increase in the gross profit
B. decrease in the gross profit
C. decrease in the net profit
D. increase in the net profit

37. Which of the following errors affects the agreement of a Trial balance?

A. wrong addition in the sales account
B. crediting a purchase to the sales account
C. failure to enter sales in the books
D. posting the purchase of a van to the debit side of the purchases account

38. The excess of value of assets over the purchase consideration on acquisition of a business is credited to

A. share capital account
B. goodwill account
C. capital reserved account
D. general reverse account

39. Share of ₦3 nominal value were issued at a price ₦4. The difference of ₦1 is a

A. commission
B. discount
C. premium
D. bonus

40. Which of the following is not the purpose of a control account?

A. check on errors of addition
B. locate errors
C. locate missing figures
D. monitor the cash book

41. The double entry to record the proceeds on disposal of assets in debit

A. bank account; credit asset disposal account
B. asset disposal account; credit bank account
C. provision for depreciation account; credit asset disposal account
D. asset disposal account; credit provision for depreciation account

42.The double entry to record the proceeds on disposal of assets is credit

A. bank account; credit asset disposal account
B. asset disposal account; credit bank account
C. provision for depreciation account; credit asset disposal account
D. asset disposal account; credit provision for depreciation account

43. An underwriter for a company's share is paid

A. interest
B. commission
C. dividend
D. salary

44. Which of the following is found of memorandum of association

A. names of directors
B. appointment of directors
C. object of the business
D. payment of dividend

45. Administrative, selling and distribution expenses in a manufacturing firm are recorded in

A. trading account
B. manufacturing account
C. profit and loss account
D. balance sheet

46. Which of the following is not a revenue to a local government?

A. fines
B. licenses
C. personal income tax
D. tenement rates

Use the following information to answer questions 47 and 48

47. The capital is

A. D7,580
B. D6,580
C. D5,380
D. D1,000

48. The liability is

A. D7,580
B. D6,580
C. D5,380
D. D1,000

49. Which of the following is not an item in the profit and loss account?

A. drawings
B. interest
C. salaries
D. bad debts

50. A loss made on the disposal of a fixed assets is debited to

A. sales account
B. purchases account
C. profit and loss account
D. capital account

1. The distinguishing feature between a two-column cash book is

A. discount column
B. cash column
C. bank column
D. ledger folio

2. The lodgment of business cash into the business bank account is an example of

A. contra entry
B. bank reconciliation
C. self-balancing ledger
D. reversal entry

3. A credit balance is

A. a liability or an expense
B. an expenditure or an income
C. an asset or an expense
D. an income

4. A credit balance is

A. a liability or an expense
B. an expenditure or an income
C. an asset or an expense
D. an income

5. The capital of a sole trader changes as a result of

A. paying wages by cash
B. equipment purchased by cheque
C. drawing by cheque
D. purchase on credit

6. The order of financial accounting process involves i. recording ii. presenting iii. collecting iv. Analyzing

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

7. A dishonored cheque is

A. debited in cash book
B. credited in the cash book
C. double entry in the cash book
D. credited in the bank book

8. A petty cashier received a float of GHC 84. The imprest is

A. GHC 204
B. GHC 120
C. GHC 84
D. GHC 36

9. Which of the following is not a book of original entry?

A. cash book B. purchases ledger returns
C. returns outwards journal
D. general journal

Use the following information to answer questions 10 to 12

10. The current ratio is?

A. 1.87 : 1
B. 1 : 1.87
C. 1 : 2
D. 2 : 1

11. The capital employed is

A. ₦ 740,000
B. ₦ 580,000
C. ₦ 370,000
D. ₦ 280, 000

12. The returns on capital employed is

A. 17.2%
B. 16.2%
C. 15.2%
D. 11.2%

13. The double entry principle states that

A. every debit entry must have a corresponding credit entry
B. every credit entry must have a corresponding double entry
C. every debit must have a corresponding double entry
D. every assets must have a corresponding liability

14. Which of the following is a nominal account?

A. machinery account
B. drawings account
C. debtors account
D. wages account

15. Reserves account is kept in the

A. private ledger
B. creditors ledger
C. nominal ledger
D. debtors ledger

16. An advantage of control account is

A. locating figures
B. creditors ledger

17. The accumulative fund of a non-for-profit making organization is

A. consistency concept
B. realization concept
C. going concern concept
D. business entity concept

18. A business is treated as being separated from owners. This statement is emphasized by

A. consistency concept
B. realization concept
C. going concern concept
D. business entity concept

19. Which of the following is recorded on the debit side of the Trial Balance?

A. bank overdrafted
B. returns outwards
C. purchases
D. capital

Use the following information to answer the questions 20 and 21

20. Purchases for the year is

A. D32,880
B. D32,780
C. D32,460
D. D31,960

21. Sales for the year is

A. D42,795
B. D41,865
C. D41,580
D. D39,720

22. Which of the following is determined in the trading account?

A. factory overheads
B. cost of goods sold
C. prime cost
D. net profit

23. Cash receipts and payments involving discounts are entered in

A. three-column cash book
B. two-column cash book
C. analytical cash book
D. petty cash book

24. The minimum number of persons required to form a partnership business is

A. 2
B. 3
C. 5
D. 10

25. Which of the following accounts has credit balance?

A. return inwards account
B. machinery account
C. sales account
D. cash account

26. The accounting principle that states that, In the preparation of account statements, revenues are recognized as soon as goods is passed on to the customer is the

A. materiality concept
B. matching concept
C. constituency concept
D. realization concept

27. Agreement between partners is contained in the partnership

A. act
B. deeds
C. accord
D. deal

28. a low current ratio in business indicates that the business is

A. long term loan repayment problem
B. efficient in the utilization of its resources
C. unable to pay its bills on time
D. growing its net assets effectively

29. Which of following is a recurrent expenditure in public sector accounting?

A. purchase of vehicles
B. purchase of drugs
C. construction of bore holes
D. construction of buildings

30. In departmental accounts, administrative expenses are recorded in the

A. trading account
B. balance sheets
C. profit and loss account
D. profit and loss appropriation account

31. The public account committee is an organ of

A. military regime
B. parliament regime
C. presidency
D. councilors

Use the following information to answer questions 32 and 33

32. The balance at the end of the period is

A. Le 270,000
B. Le 139, 000
C. Le 131,000
D. Le 120,000

33. The total expenditure for the period is

A. Le 319,000
B. Le 270,000
C. Le 139,000
D. Le 109,000

34. Which of the following is not an item on the credit side of the purchases ledger control account?

A. cash received
B. cash payment
C. contra settlement
D. cheque payment

35. When a business is purchased from a sole trader, the excess of the purchase price over the net assets is

A. reserve
B. goodwill
C. freehold
D. valuation price

36. A set of instrument or programs which controls the operation of a computer is

A. software
B. hardware
C. monitor
D. keyboard

37. The process of detecting, tracing and eliminating errors in a computer program is

A. reproduction
B. debugging
C. sorting
D. retrieving

38. In a non-for-profit making organization, the cash book is referred to as

A. income and expenditure account
B. receipts and payments account
C. two column cashbook
D. petty cash book

39. When the going concern concept is no longer applicable, the fixed assets are recorded at their

A. net book value
B. realizable value
C. gross value
D. revalued amount

Use the following information to answer questions 40 and 41

40. The cost of raw materials consumed is

A. GH¢58,000
B. GH¢52,500
C. GH¢52,000
D. GH¢50,000

41. The prime cost is

A. GH¢6,500
B. GH¢64,000
C. GH¢58,500
D. GH¢52,500

42. Which of the following relates to the essence of partnership? To

A. run a charity organization
B. pursue a social objective
C. form a business for profit
D. run a religious objective

44. Upon the dissolution of partnership business, the party to be settled first out of the proceeds realized is

A. unsecured creditors
B. partner's loan and advances
C. secured creditors
D. partners' capital

45. Stock account is a type of

A. nominal account
B. personal account
C. real account
D. fixed assets account

46. At the end of trading period, cost of goods sold is debited to the trading account while cost of services is debited to the

A. balance sheet
B. manufacturing account
C. trading account
D. profit and loss account

47. Which of the following is not part of prime cost of production?

A. depreciation of factory equipment
B. direct expenses
C. direct wages
D. carriage on raw materials

48. Excess of current assets over current liabilities is

A. deferred capital
B. nominal capital
C. working capital
D. authorized capital

49. a statement showing a trader's financial position as at a particular date is an

A. trading account
B. profit and loss account
C. balance sheet
D. appropriation account

50. A trading account is prepared to disclose the

A. net profile or loss for the year
B. gross profit or loss for the year
C. accumulated fund for the year
D. gross profit on manufacturing

1. The source document used to make entries in the purchase day book is

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

2. A book that contains individual accounts of suppliers is the

A. purchase ledger
B. general ledger
C. nominal ledger
D. sales ledger

3. In the operation of an imprest of petty cash, the

A. petty cashier pays all expenses
B. petty cashier pays money to the accountant
C. petty cashier regularly begins each period with the same amount of money
D. main cashier accounts to the petty cashier for some experiences made by him

4. An example of a credit entry in a profit and loss account is

A. carriage inwards
B. carriage outwards
C. discounts allowed
D. discounts received

5. Which of the following subsidiary books involves cash movements?

A. sales day book
B. purchases day book
C. returns inwards book
D. petty cash book

6. The accounting treatment for a dishonored cheque is; debit

A. customer's account; credit bank account
B. bank account; credit customer's account
C. customer's account; credit sales account
D. sales account; credit customer account

7. Net turnover is referred to as

A. purchases
B. assets
C. sales
D. profits

8. Which of the following transactions will result in disagreement between the cash book and the bank statements?

A. selling of goods on credit to a customer
B. withdrawal of goods by the proprietor for his personnel use
C. cheque paid directly into the bank account by a customer
D. omission of purchases received from a supplier on credit

9. Purchase account is overcast by ₦200, while wages account is undercast by ₦200. This is

A. an error of omission
B. a compensating error
C. an error of commission
D. an error of principal

10. Which of the following is used to record the disposal of a fixed asset?

A. journal proper
B. petty cash book
C. sales day book
D. purchase day book

Use the following to answer questions 11 ans 12. Estimated useful life span 10 years. The business makes
use of the straight line method for providing depreciation.

11. The annual depreciation is

A. N9,000
B. N 8,500
C. N 8,000
D. N 6,500

12. The accumulated depreciation as at 31/12/2013 is

A. N16,000
B. N 17,000
C. N 16,000
D. N 8,000

13. An error of principle is made, if

A. an entry has been made on the wrong class of account
B. a transaction has been completely omitted
C. an entry has been made on the wrong side of the two accounts concerned
D. a transaction is entered in both accounts for the wrong amount

14. Which of the following is entered in the general journal?

A. purchase of goods
B. sale of goods on credit
C. returns inward
D. acquisition of fixed assets

15. The cost of carriage outward is classified as

A. a selling and distribution expense
B. an administrative expense
C. a trading expense
D. a finance expense

16. The purchase of ten ceiling fans by Akpan Electronic Enterprises will be recorded as

A. an acquisition of fixed asset
B. an expense in its general office expense account
C. part of capital in the capital account
D. an acquisition of stock

17. Which of the following accounts would appear in the nominal ledger? i. Sanison's account(a debtor) ii. Motor vehicle account iii. Sales account iv. Rent and rates account

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

18. The sum of direct cost in a manufacturing account is

A. production cost
B. prime cost
C. total cost
D. finance cost

19. Net profit in a business is

A. the amount of money taken out of the business by the writer
B. the cash in the business bank account
C. the difference between sales and cost of sales
D. sales revenue less cost of sales and expenses

20. An example of a self balancing account is the

A. suspense account
B. credit account
C. control account
D. debtor account

Use the following information to answer questions 21 and 22.
The total sales of a business was GH¢160,000. The average mark-up for the year was 50%

21. The gross profit is

A. GH¢,160,000
B. GH¢1,440,000
C. GH¢1,080,000
D. GH¢720,000

22. The cost of sales is

A. GH¢,160,000
B. GH¢1,440,000
C. GH¢1,080,000
D. GH¢720,000

23. Which of the following is not an administrative expenses in a manufacturing organization?

A. Discounts allowed
B. Office electricity
C. Stationery
D. Insurance

24. When an asset is sold, the entries for the accumulated depreciation are; debit

A. assets disposal account; credit provision for depreciation account
B. provision for depreciation account; credit asset disposal account
C. fixed asset account; credit asset disposal account
D. asset disposal account; credit fixed asset account

25. A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?

A. D33,000
B. D28,000
C. D23,000
D. D5,000

26. In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a

A. surplus
B. shortfall
C. loss
D. deficit

27. The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is

A. constituency concept
B. prudence concept
C. accrual concept
D. going concern concept

28.Which of the following items is not contained in the receipts and payments account?

A. Subscription paid in advance
B. stock paid in advance
C. outstanding wages and salaries
D. donation

29. The concept that states that a business should not lay claim to any profits before it earned with reasonable certainty is

A. consistency concept
B. prudence concept
C. accrual concept
D. going concern concept

30. When shares are issued above their nominal value, the excess above the nominal value is

A. credited to profit and loss account
B. debited to share premium account
C. credited to share capital account
D. credited to share premium account

31. Shares issued below nominal value are referred to as shares at

A. premium
B. discount
C. face value
D. cumulative value

Use the following information to answer questions 32 to 34

32. The divisible profit is

A. Le 14,000
B. Le 12,000
C. Le 10,000
D. Le 8,000

33. Aye;s share of profit is

A. Le 6,000
B. Le 4,800
C. Le 4000
D. Le 3,200

34. Bee's share of profit is

A. Le 8,000
B. Le 6,000
C. Le 4,800
D. Le 3,200

35. The accounting ratio used to measure the average number of days for which suppliers remain unpaid is

A. stock turnover
B. creditor's payment period
C. debtors collection period
D. return on capital employed

36. When the purchase consideration exceeds the value of business, the difference is

A. profit
B. discount
C. goodwill
D. reserve

37. The primary classification of government expenditure is based on

A. programs
B. fund
C. activity
D. project

38. An example of input devices of a computer is

A. an optical character reader
B. a graph plotter
C. a visual display unit
D. a printer

39. The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is

A. business entity
B. materiality
C. dual aspect
D. realization

40. A company made a net profit of N 2,000,000 for the year and its net profit percentage is 25%. What is the total sales for the year?

A. N 8,000,000
B. N 6,000,000
C. N 800,000
D. N500,000

41. Which of the following information is recorded in the returns outwards book?

A. goods purchased on credit and subsequently returned to suppliers
B. fixed asset bought on credit and subsequently returned to supplier
C. cash payment received from a customer and subsequently returned to supplier
D. goods sold to a customer and subsequently returned to the business

Use the following information to answer questions 42 and 43

D
Branch stock account (at selling price) 36,000 – debit
Branch mark-up account 62,000- credit

42. Which of the following information is recorded in the returns outwards book?

A. goods purchased on credit and subsequently returned to suppliers
B. fixed asset bought on credit and subsequently returned to supplier
C. cash payment received from a customer and subsequently returned to supplier
D. goods sold to a customer and subsequently returned to the business

43. The concept applied in answering question 42 above is

A. matching
B. consistency
C. prudence
D. entity

44. Subscription in advance is classified in the balance sheet as

A. an asset
B. a liability
C. a deficit
D. a surplus

45. Which of the following item is not treated in the profit and loss account?

A. office expenses
B. salaries and allowances
C. carriage inwards
D. discounts allowed

46. The document prepared by a local/district government to present its annual estimates for a planning period is

A. a balance sheet
B. a budget
C. an income and expenditure account
D. a cash book

47. A manufacturing account is drawn up by

A. firms providing personal services
B. firms engaged solely in buying and selling of goods
C. firms which makes and sell articles
D. non-trading organization

48. Which of the following is not a factory overhead cost?

A. manufacturing wages
B. factory rent
C. depreciation of machinery
D. salary of factory guard

49. A collection of fields relating to one logically definable unit of business information is known as

A. database
B. character
C. byte
D. record

50. The principle of double entry bookkeeping states that

A. every debtor must have a creditor
B. every account debited must be immediately credited
C. for every debit entry, there must be a corresponding credit entry
D. for every double debit, there must be a double credit

1. Which of the following describes a trial balance?

A. It is a special account
B. It is a list of balances in the books
C. It reveals the financial position of a business
D. It shows all the entries in the books of a business

2. Which of the following is not a feature of accounting information?

A. Affordability
B. Timeliness
C. Accuracy
D. Completeness

3. Which of the following is the equation for determining net profit or loss from the records of a firm?

A. Closing Capital - Drawings - Capital Introduced
B. Opening Capital + Drawings - Closing Capital
C. Closing Capital + Opening Capital – Drawings
D. Closing Capital + Drawings - Opening Capital

4. Purchase invoice is first entered in the

A. Purchases Account
B. Cash Book
C. Sales Journal
D. Purchases Journal

5. Assets acquired is recorded by debiting _______?

A. Asset Account, Crediting Cash Account
B. Cash Account, Crediting Asset Account
C. Purchase of Business Account, Crediting Sale of Business Account
D. Asset Account, Crediting Purchase of Business Account

6. Goods returned to a supplier is

A. Debited to returns outward account
B. Credited to returns outwards account
C. Debited to returns inwards account
D. Credited to returns inwards account

7. Which of the following is not a real account?

A. Plant account
B. Salaries account
C. Creditors account
D. Trading account

8. The accounting ledger for goods sold on credit are debit

A. debtors account, credit sales account
B. creditors account, credit sales account
C. sales account, credit debtors account
D. sales account, credit creditors account

9. Which of the following is not a book of original entry?

A. Sales journal
B. Purchases account
C. Cash account
D. Return inwards journal

10. Which of the following is not a book of original entry?

A. Sales journal
B. Purchases account
C. Cash account
D. Return inwards journal

11. Discount received account is a

A. Real account
B. Personal account
C. Nominal account
D. Profit and loss account

12. Which of the following accounts has a credit balance?

A. Capital
B. Cash
C. Drawings
D. Premises

13. The accounting entry to correct sales day book overcast is?

A. Debit sales account and credit debtors account
B. Debit suspense account and credit sales account
C. Debit debtors account and credit suspense account
D. Debit sales account and credit suspense account

14. Which of the following expresses the accounting equation?

A. Capital + assets = liabilities
B. Assets - liabilities = Capital
C. Liabilities + Current Assets = Fixed assets
D. Liabilities - Capital = Current assets

15. When the invoice of a customer is overcast, the supplier will send to him a

A. Cheque
B. Payment voucher
C. Debit note
D. Credit note

16. Unpresented cheques are cheques _________

A. That have been recorded in the cash book but not by the bank
B. That have been received by the bank, but not recorded in the cash book
C. Returned by the bank
D. Written but not handed over to customers

Use the following information to answer questions 17 to 19

Extracts from the books of a firm as at June 30,2 2012 showed the following balances

Advertising was paid by cheque covering 12 monthly installments ending March 31, 2012
Electricity was paid by ash covering 15 monthly installments from March 11, 2011

17. Advertising owing in respect of the year ended June 30, 2012 is _______?

A. GH¢12,000
B. GH¢ 9,000
C. GH¢ 6,000
D. GH¢ 3,000

18. What was the amount charged to the profit and loss account in respect of advertising for the ended June 30 2012 is_____?

A. GH¢ 36,000
B. GH¢ 30,000
C. GH¢ 27,000
D. GH¢ 24,000

19. Electricity in arrears as at June 30, 2012 amounted to

A. GH¢ 12,000
B. GH¢ 10,000
C. GH¢ 8,000
D. GH¢ 4,000

20. The cost of putting goods into a saleable condition is charged to

A. Balance sheet
B. Trial balance
C. Profit and loss account
D. Trading account

21. Which of the following is not a method of depreciating fixed assets?

A. Revaluation
B. Straight Line
C. Diminishing balance
D. Obsolescence

22. In preparing a profit and loss account, a decrease in provision for doubtful debts accounts is treated as

A. Current liability
B. Expenses
C. Income
D. Current asset

23. Which of the following items is found in the sales ledger control account?

A. Discount received
B. Total credit purchases
C. Discount allowed
D. Returns outwards

24. The process of using sales ledger balance to cancel off purchases ledger balance is

A. Balancing
B. Set off
C. Reconciliation
D. Cancelling

25. The total of the returns outwards journal is posted to the

A. Credit side of the returns outwards book
B. Debit side of the returns outwards account
C. Debit side of the purchases returns book
D. Credit side of the returns outwards account

26. Which of the following is a not revealed by a firm's accounting records?

A. Profit of a period
B. Quality of labour force
C. Credit worthiness
D. Value of assets

Use the following information to answer the questions 27 to 29

Drawings during the year amounted to D1,500

27. Opening capital is

A. D5,660
B. D5,060
C. D4,460
D. D2,960

28. Closing capital is

A. D8,100
B. D7,400
C. D6,700
D. D5,200

29. Net profit for the year is

A. D12,260
B. D3,740
C. D2,440
D. D2,040

30. In the balance sheet of a social club, subscription owing is treated as a

A. Current liability
B. Current asset
C. Tangible asset
D. Long term liability

31. The accounting concept that allows the cost of kitchen cutlery to be expensed, though it will be used for more than one year is

A. Materiality
B. Accrual
C. Going concern
D. Business Entity

32. The accounting concept that assumes that a business will continue operating for an indefinite period is

A. Business entity
B. Going concern
C. Consistency
D. Duality

33. The accounting concept that states that a firm's financial affairs must be separated from that of the owner's private transactions is

A. Business entity
B. Going concern
C. Consistency
D. Duality

34. Goodwill is recognized in partnership accounts when

A. The business makes a huge profit
B. The business has good customer relationship
C. A partner is dormant
D. A new partner is admitted

35. In which of the following is not stated in the partnership agreement?

A. Profit sharing ratio
B. Interest on capital
C. Interest on fixed asset
D. Purpose of partnership

36. Which of the following is not stated in the partnership agreement?

A. profit sharing ratio
B. interest on capital
C. interest on fixed asset
D. purpose of partnership

Use the following information to answer questions 37 and 38.
Mr. White acquired Mr. Black’s business for GHc 410,000. The total assets were GHc 670,000 and liabilities amounted to GHc 320,000

37. How much was paid for goodwill?

A. GHc350,000
B. GHc260,000
C. GHc90,000
D. GHc60,000

38. The double entry to record the goodwill in the books is debit

A. cash account and credit goodwill account
B. goodwill account and credit purchase of business account
C. goodwill account and credit cash account
D. purchase of business account and credit cash account

39. The document which sets out the internal arrangement for the proper management of a company is the

A. Prospectus
B. Article of association
C. Memorandum of association
D. Certificate of incorporation

40. A person who has applied to purchase shares in a company is referred to as?

A. A promoter
B. A subscriber
C. An allottee
D. An underwriter

41. Which of the following expenses is allocated according to the floor area?

A. Wages and Salaries
B. Rent and Rates
C. Canteen Expenses
D. Discount allowed

42. Goods stolen at the branch is debited to

A. Defalcations account
B. Branch stock account
C. Branch adjustment account
D. Branch debtors account

43. Which of the following is a source of revenue for a local government?

A. Personal income tax
B. Company registration fees
C. Royalties
D. Market tolls

44. The instrument used to release fund which the minister of finance has earlier withheld is

A. Reserve expenditure warrant
B. Supplementary general warrant
C. Provisional general warrant
D. Supplementary statutory warrant

45. Which of the following is found on the credit side of a partnership's appropriation of profit account?

A. Interest on capital
B. Interest on drawings
C. Share of profit
D. Drawings

Use the following information to answer the questions 46 and 47

Interest on drawings is 5% profit is shared equally

46. Ade's share of profit is

A. N5,500
B. N4,250
C. N2,750
D. N1,250

47. Bola's share of profit is

A. N4,500
B. N4,250
C. N3,000
D. N2,750

48. Which of the following is found on the credit side of a partnership's appropriation of profit account?

A. Interest on capital
B. Interest on drawings
C. Share of profit
D. Drawings

49. Which of the following is a spreadsheet application?

A. Excel
B. Word
C. Internet
D. Windows

50. The quality of output information depends on the

A. Quality of input data
B. Time of processing
C. Speed of processing
D. Quantity of output service

1. External users of accounting information include

A. employees
B. management
C. banks
D. directors

2. Every asset should have

A. a non-monetary value
B. tangible and intangible qualities
C. monetary cost and future benefit
D. an inadequate monetary value

3. Which of the following are impersonal accounts? I. Investment II. Creditors III. Premises IV. Debtors V. Salaries

A. I, III and IV
B. I, III and V
C. II and IV
D. III and V

4. Nwoye buys stock and pays by cheque. The entries in the books of Nwoye is Debit

A. Purchases; Credit cheque
B. Purchases; Credit bank
C. Bank; Credit Purchases
D. Cheque; Credit Purchases

5. A bank statement shows an overdraft of GH¢ 190,000. Kofi a debtor paid GH¢ 400,000 into the account. The new balance is

A. GH¢ 590,000
B. GH¢ 590,000 0verdrawn
C. GH¢ 210,000
D. GH¢ 210,000 Overdrawn

6. 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.

A. I and II
B. I and IV
C. II and IV
D. III and IV

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?

A. GH¢ 8,000
B. GH¢ 6,000
C. GH¢ 4,000
D. GH¢ 2,000

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

A. Principle
B. Commission
C. Complete reversal of entries
D. Original entry

9. One of the purchases invoices of Mr.Dauda showed D96,240 less 12 [Math Processing Error]12% trade discount and cash discount of 20%. Since Mr Dauda paid the amount due within the credit period, the amount paid is

A. D 77,368
B. D 73,157
C. D 67,368
D. D 63,157

10. Bank reconciliation statement is prepared to reconcile the differences between

A. Bank statement and credit transfers
B. Cash book and bank transfers
C. Bank statement and cash transfers
D. Cash book and bank statement

11. Which of the following items of expense involves actual cash payment?

A. Discounts allowed
B. Provision for depreciation
C. Carriage outwards
D. Allowance for doubtful debts

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

A. Materiality concept
B. Dual aspect concept
C. Matching concept
D. Money measurement concept

13. In accounting context, purchases refer to

A. Goods bought and paid only
B. Goods bought for resale only
C. Goods bought on credit only
D. Goods bought to be used in the firm

14. Which of the following items is a current liability?

A. Stock of raw material
B. Cash in hand
C. Bills payable
D. Cash at bank

15. The balance sheet is prepared to reveal

A. The result of the operations for the period under review
B. The financial position of the business
C. The arithmetical accuracy of the ledger accounts
D. The accruals and payment

Use the following information to answer questions 17 and 18

16. The excess of cost of goods sold over net sales is

A. Gross profit
B. Gross loss
C. Net profit
D. Net loss

17. Rent for 2014 chargeable to the profit and loss account is

A. N4,000
B. N3,000
C. N3,200
D. N2,800

18. The balance sheet as at 31st December 2014 will show

A. Current asset of N600
B. Current asset of N400
C. Current liability of N400
D. Current asset of N600

19. Which of the following would result from an increase in the provision for doubtful debts?

A. A Decrease in gross profit
B. A decrease in net profit
C. An increase in gross profit
D. An increase in net profit

Use the following information to answer questions 20 and 21

20. The depreciable value of computers is

A. Le 80,000
B. Le 96,000
C. Le 100,000
D. Le 104,000

21. The total costs of the computers is

A. Le 80,000
B. Le 96,000
C. Le 100,000
D. Le 104,000

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
A. I and II only
B. I and III only
C. I, II and III only
D. I,II and IV only

23. Partly manufactured goods are treated in the balance sheet of a manufacturing company as

A. Current assets
B. Fixed assets
C. Current liabilities
D. Long term liabilities

Use the following information to answer questions 24 and 25

24. The credit purchases is

A. D 161,841
B. D 156,986
C. D 134,673
D. D 132,200

25. The total purchases is

A. D 161,841
B. D 156,986
C. D 134,673
D. D 132,200

26. Offei, a petty trader sold goods for GH¢36,240. The gross profit being 331313% on cost. What was the cost price?

A. GH¢45,300
B. GH¢28,992
C. GH¢27,180
D. GH¢24,160

27. Which of the following is a credit item in an income and expenditure account?

A. Electricity
B. Donations
C. Stationery
D. Bar suppliers

28. Purchases of fixtures and fittings by a club is recorded in the

A. Receipts and payments account only
B. Income and expenditure only
C. Receipts and payments account and balance sheet
D. Income and expenditure 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

A. Realization concept
B. Business entity concept
C. Cost concept
D. Dual aspect concept

30. Where fixed capitals are maintained in a partnership, share profits are

A. Credited to partners capital accounts
B. Credited to partners current accounts
C. Debited to partners capital accounts
D. Debited to partners current accounts

31. In the absence of a partnership agreement, additional capital contributions by partners attract interest of

A. 5%
B. 10%
C. 12%
D. 15%

32. In preparing partnership accounts, interest on drawings is debited to current accounts and credited to

A. Capital account
B. Appropriation account
C. Drawings account
D. Profit and loss account

Use the following information to answer questions 34 to 35

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.

34. The subscribed share capital is

A. N300,000
B. N250,000
C. N200,000
D. N150,000

35. The unsubscribed share capital is

A. N300,000
B. N250,000
C. N200,000
D. N150,000

36. The authorized share capital is

A. N300,000
B. N250,000
C. N200,000
D. N150,000

37. The branch current account records

A. Head office transactions with the branch
B. Branch transactions with the head office
C. Goods sent to branch at selling price
D. Cash received from branch as sales

38. The entries for credit sales at branch where the head office keeps all records are: Debit

A. Branch stock account; credit branch debtors account
B. Branch debtors account; credit branch stock account
C. Branch debtors account; credit branch adjustment account
D. Branch adjustment account; credit branch debtors account

39. The cost of goods returned by branch to head office is debited

A. Branch stock adjustment account
B. Goods sent to branch account
C. Branch stock account
D. Branch profit and loss account

40. Which of the following is a source of local government revenue?

A. Excise duties
B. Market dues
C. Import duties
D. Loans and grants

41. The transfer of money from one sub-head to another in the public sector is

A. Budgeting
B. Allocation
C. Virement
D. Vote

42. The total of the discounts received column in the three column cash book is?

A. Debited to discounts received account
B. Credited to discounts received account
C. Debited to discounts allowed account
D. Credited to discount allowed account

43. Which of the following expenses is apportioned between departments based on sales?

A. Discount received
B. Electricity
C. Carriage inwards
D. Carriage outwards

44. In the purchase of a business, a buyer has paid more than the value of the net assets of the business. The excess payment is referred to as

A. Bonus
B. Goodwill
C. Net profit
D. Premium

45. Assets which are readily convertible into cash are termed as

A. Liquid assets
B. Fixed assets
C. Intangible assets
D. Tangible assets

46. A loan to a company under the company's seal is

A. Fixed deposit
B. Mortgage
C. Bond
D. Debenture

47. Debts that a firm is unable to recover are debited to bad debts account and credited to

A. Suppliers account
B. Sales account
C. Customers account
D. Cash account

48. When a fixed asset is disposed off, the accounting entries to write off the asset are Debit

A. Profit and loss account; credit asset disposal account
B. Asset disposal account; credit profit and loss account
C. Asset disposal account, credit asset account
D. Profit and loss account; credit provision for depreciation account

49. The financial statement which is an expression of the accounting equation is the

A. Trading account
B. Profit and loss account
C. Balance sheet
D. Statement of cash flow

50. Which of the following errors will affect the agreement of the trial balance?

A. Error of original entry
B. Error of commission
C. Error of transposition
D. Error of omission

1. Customers use the financial position of a company to

A. assess the financial position of the business
B. regulate their activities
C. ascertain the taxable profit of the business
D. be sure of the extent of job security

2. The claim on the assets of a business by outsiders is

A. capital
B. liabilities
C. reserves
D. provisions

3. A document sent by a bank to its current account customers detailing their transactions over a given period is

A. bank reconciliation statement
B. bank statement
C. credit transfer
D. banker's advice

4. Which of the following items will not be entered in the adjusted cash book?

A. Dishonoured cheques
B. Direct payments to bank
C. Uncredited cheques
D. standing order payments

5. If a petty cashier has a cash float of Le 39,000 and Le 37,500 is spent, he will be reimbursed with

A. Le 40,500
B. Le 39,000
C. Le 37,500
D. Le 1,500

6. A suspense account is used in the

A. prevention of errors
B. correction of errors
C. detection of errors
D. creation of errors

7. A credit purchase of N200 from P. Osae was posted to the account of P. Osei. This is an error of

A. principle
B. commission
C. omission
D. original entry

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

A. customer account with N20,000 crediting discount allowed with N20,000
B. discount allowed with N10,000; crediting customer's account with N10,000
C. customer's account with N10,000, crediting discount allowed with N10,000
D. discount allowed with N20,000, crediting cash with N20,000

9. The balance sheet equation shows

A. current assets minus current liabilities
B. the difference between fixed assets and current liabilities
C. assets and sources of financing them
D. sources of funding owner's equity

10. The effect on profit when the closing stock is understated is

A. increase in profit
B. decrease in profit
C. no change in profit
D. appropriation of profit

11. Which of the following describes a trial balance?

A. it shows all the entries in the books
B. It reveals the financial position of a business
C. It is a list of accounting balances on the books
D. it is a special account

12. The accounts of Jute Enterprise in the books of a supplier will be a

A. nominal account in the general ledger
B. personal account in the sales ledger
C. personal account in the purchases ledger
D. real account in the general ledger

13. Which of the following accounts are found in the nominal ledger?
I. Advertising ll.Motor repairs lll. Additions to the motor vehicle

A. materiality
B. periodicity
C. objectivity
D. conservatism

14. Account payable is classified as a

A. prepayment
B. provision
C. current liability
D. long term liability

15. The accounting concept that provides that accounting statements should not be influenced by personal opinion is

A. materiality
B. periodicity
C. objectivity
D. conservatism

16. The prudence concept demands that

A. care is exercised in recognition of profit
B. loss should be anticipated
C. profit should be reported
D. income should be recognized and disclosed

17. Carriage outward expenses of a business are treated in the

A. balance sheet
B. income surplus account
C. profit and loss account
D. trading account

18. The cost of transporting purchased goods to the warehouse is charged to the

A. profit and loss account
B. appropriation account
C. trading account
D. income surplus 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?

A. N16,000
B. N15,000
C. N12,800
D. N12,000

Use the following information to answer questions 20 and 21

20. The total sales for the month is?

A. 36,000
B. 31,000
C. 30,000
D. 10,000

21. The credit sales for the month is?

A. 36,000
B. 31,000
C. 20,000
D. 30,000

22. The excess of the market value of goods produced over the cost of production is

A. profit on manufacturing
B. net profit
C. goodwill
D. gross profit

23. Factory wages from part of

A. administration cost
B. selling and distribution cost
C. overhead cost
D. prime cost

24. The production cost of a manufacturing firm is made up of

A. indirect materials
B. factory overheads and prime cost
C. direct materials and wages
D. factory overheads and directs materials

25. In a manufacturing enterprise depreciation of plant is treated in the

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

26. The purpose of keeping Sales and Purchases Ledger Control Account is to

A. match credit ids Sales and credit purchases
B. equate debtors balance to creditors balance
C. verify total debtors and total creditors balances
D. determine cash sales and cash purchases

27. Which of the following items will appear in the Total Creditors Account?

A. Discount allowed
B. credit sales
C. Discount received
D. cash purchases

28. A disadvantage of single entry system of book-keeping is that

A. the profit for the period is reduced
B. it is difficult to determine profit for the period
C. total sales for the period is reduced
D. the owner of the firm withdraws money from the enterprise

29. Which of the following accounts or statements is used to determine credit purchase figures in incomplete records?

A. Bank Account
B. Control Account
C. Profit and Loss Account
D. Statement of Affairs

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?

A. N900,000
B. N864,000
C. N840,000
D. N180,000

31. Donations to a club are

A. credited to the Income and Expenditure Account
B. credit to the Receipts and Payments Account
C. debited to the Income and Expenditure Account
D. debited to Donation Accounts

32. A statement of affairs shows

A. receipt and payments
B. revenue and expenditure
C. financial position
D. profit or loss

33. In a not-for-profit making organization, the Receipts and Payments Accounts is the equivalent of

A. Profit and Loss Accounts
B. Income and expenditure Accounts
C. Cash Book
D. Balance Sheet

34. Where there is no agreement between the partners, the Partnership Act states that

A. 5% interest is to be paid on capital
B. profit and losses are to be shared in proportion to their capital
C. 50% interest is to be charged on drawings
D. no salary is to be paid to partners

35. Interest on partners drawings are debited in the

A. partners current accounts and credited to the appropriation account
B. drawings account and credited to the profit and loss account
C. profit and loss account and credited to the partners current account
D. profit and loss account and credited to the partners' drawings account

36. Goodwill may be brought into the books when

A. no partner retires
B. assets are more than liabilities
C. profit for the period is high
D. a new partner is admitted

37. Working capital is the excess of

A. current assets over fixed assets
B. current liabilities over current assets
C. fixed assets over currents liabilities
D. current assets over current

38. Share premium is classified in the balance sheet as

A. fixed capital
B. capital reserve
C. revenue reserve
D. short-term capital

Use the following information to answer question S 39 AND 40

39. The percentage of gross profit to sales is

A. 61.82%
B. 38.17%
C. 28.49%
D. 14.25%

40. What is the rate of stock turnover?

A. 7 times
B. 6 times
C. 5 times
D. 4 times

41. When allotment of shares is made applicants for shares of a company become

A. promoters
B. creditors
C. debtors
D. shareholders

42. The objective of a departmental accounts is to ascertain the

A. number of staff in the department
B. departmental performance
C. stock held by the department
D. departmental labour

43. In departmental accounting, when goods are sent from one department to another for sale the transaction is treated as

A. interdepartmental transfer
B. inter-departmental sales
C. intra-departmental purchases
D. intra-department sales

44. A branch that keeps its own records prepares the records of transactions with the head office in the

A. Branch Current Account
B. Branch Stock Account
C. Head Office Current Account
D. Profit and Loss Account

45. The accounting entries when goods are sold on credit at the branch are debit

A. Branch Debtors Account; credit Sales Accounts
B. Branch Current Account; credit Head Office Current Account
C. Branch Debtors Account; credit Head Office Current Account
D. Head Office Current Account; credit Sales Accounts

46. Which of the following is not a method of charging goods to the branch by its head office?

A. Net realizable value
B. Cost price
C. Cost-plus profit
D. Selling price

Use the following information to answer questions 47 and 48.
Nzemaman Local Government incurred the following expenditure in the year 2015.

47. Recurrent expenditure for the year is

A. D 112,000
B. D 84,000
C. D 77, 000
D. D 49,000

48. Capital expenditure for the local government is

A. D 473,000
B. D438,000
C. D 422,000
D. D 410,000

49. A reserve is an amount

A. set aside from profit for an unknown liability
B. of loss from trading activities
C. of profit from trading activities
D. set aside from profit for a specific purpose

50. An amount set aside to meet expenses whose value is not certain is a

A. reserve
B. liability
C. provision
D. prepayment

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1. Investors in a business are mainly interested in firm's--------

A. liquidity
B. debt
C. management
D. profitability

2. One of the characteristics of useful accounting information is--------

A. profitability
B. comparability
C. efficiency
D. liquidity

3. Which of the following items is found on the debit side of the trial balance?

A. provision for doubtful debts
B. discount allowed
C. discount received
D. returns outwards

4. Which of the following transactions is a revenue expenditure?

A. purchase of plant
B. purchase of a new engine
C. construction of office wall
D. purchase of fuel for vehicle

5. Credit notes received are source documents for........

A. returns inwards journal
B. returns outwards journal
C. purchase journal
D. sales journal

6. A document forwarded to a supplier showing unsatisfactory goods is..............................

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

7. The claim of a proprietor of a business entity on its assets is................

A. liabilities
B. capital
C. drawings
D. funds

8. The apportionment of the cost of a fixed asset to the profit and loss account is termed?

A. expense
B. depreciation
C. loss
D. appreciation

9. Entries in the purchase journal are transferred to the .............

A. receivable ledger
B. payable ledger
C. general ledger
D. private ledger

10. A reduction n price to encourage prompt payment is........

A. trade discount
B. quantity discount
C. cash discount
D. seasonal discount

Use the following information to answer questions 11 and 12.
Tei Ltd offered 1,560 units of magazines at N60 each. Trade discount is 10% and cash discount is 10% within 30 days and 5% within 60 days.

11. The cash discount allowed on the 50th day is?

A. 9,360
B. 8,424
C. 4,680
D. 4,212

12. The amount payable if payment is made on the 40th day is...........

A. 88,920
B. 84,240
C. 80,028
D. 72,025

13. An amount of Le2000 received from a customer, Koffi has been credited to another customer, Kofigo's account. This is an error of?

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

14. The current assets less current liabilities is

A. working capital
B. capital employed
C. fluctuating capital
D. fixed capital

15. A debit balance of N420 on the purchase ledger control account means that as at that date..........

A. trade creditors have been paid by N420
B. trade creditors are owed N420
C. goods returned to trade creditors amounted to N420
D. total supplies from trade creditors amounted to N420

16. Sales and purchases ledger are used in a business to keep records of?

A. the owner's capital and cash transactions
B. accounts of individual customers and suppliers
C. current assets and fixed assets
D. current liabilities and long term liabilities

17. Which of the following activities will increase profits?

A. depreciation charges
B. reduction in provision for doubtful debts
C. undervalued closing stock
D. returns inwards

18. The concept that implies that a business will operate for an indefinitely long period of time is...............

A. going concern concept
B. accrual concept
C. business entity concept
D. periodicity concept

19. The consistency concept aims at?

A. ensuring that all expenses are matched against revenue
B. reducing cost
C. comparability of accounting records
D. suppressing profits to be declared

20. The concept which states that revenue is recognized when goods are sold is

A. realization concept
B. going concern concept
C. matching concept
D. periodically concept

21. Cost of goods sold is calculated as...................

A. opening stock+ purchase – closing
B. opening stock + sales - closing stock
C. opening stock + purchase + closing stock
D. opening stock + sales + closing stock

22. The wages of an office cleaner is classified as

A. direct labour cost
B. direct expenses
C. factory overhead
D. administrative overhead

Use the information below to answer questions 23 and 24

23. The cost of goods sold is-----------

A. Le 120,000
B. Le 110,000
C. Le 90,000
D. Le 30,000

24. The gross profit or loss is?

A. Le 30,000 profit
B. Le 20,000 profit
C. Le 10,000 loss
D. Le 30,000 loss

25. The amount set aside out of profits to strengthen the financial position of the business is

A. position
B. reserve
C. depreciation
D. surplus

26. A fall in the value of a fixed asset due to technological changes is described as?

A. superfluity
B. wear and tear
C. obsolescence
D. depletion

27. A credit entry is made in the plant and machinery account for the ......................

A. purchase of an additional plant and machinery
B. sale of plant and machinery
C. maintenance of plant and machinery
D. appreciation of plant and machinery

28. In a manufacturing account, royalties paid

A. debited to the trading account
B. credited to the profit and loss account
C. credited to the manufacturing account
D. debited to the manufacturing account

29. One of the components of factory overhead is............

A. raw materials consumed
B. manufacturing wages
C. carriage inwards
D. depreciation of plant and machinery

Use the following information to answer questions 33 and 34

30. Prime cost of production is?

A. N64,000
B. N94,000
C. N111,000
D. N116,000

31. The total cost of production is

A. 94,000
B. 106,000
C. 111,000
D. 116,000

32. The balance on the sales ledger control account at the end of the accounting year represents a total.........

A. trade debtors at the end of the year
B. cash sales for the year
C. credit sales for the year
D. amount transferred from the sales journal

Use the following information to answer questions 33 and 34

33. Credit sales for 2016 is?

A. 530,000
B. 370,000
C. 350,000
D. 330,000

34. Credit purchase for 2016 is?

A. 290,000
B. 230,000
C. 220,000
D. 210,000

35. The excess of assets over liabilities in a not for profit organization is--------------

A. surplus
B. deficit
C. working capital
D. accumulated fund

Use the following information to answer questions 36 and 37

36. The total income received for the year is...........

A. 2,180
B. 1,890
C. 2,640
D. 1,690

37. The surplus for the year is-----------

A. 1,970
B. 1,890
C. 1,690
D. 1,390

38. The parties who are paid last in the event of winding-up are

A. preference shareholders
B. debenture holders
C. ordinary shareholders
D. trade creditors

39. An event that will not require a change in the profit-sharing ratio of partners in a firm is when

A. a partner dies
B. a partner retires
C. a new partner is admitted
D. partners assets value appreciates

Use the following information to answer question 40 and 41

Profit sharing ratio is 3:2 for Taiwo and Obi respectively

40. Taiwo's share of profit is------

A. 8,960
B. 7,404
C. 4,936
D. 3,296

41. Obi's share of profit is---------------

A. 8,960
B. 7,404
C. 4,936
D. 3,296

42. The accounting entry for cash realized from the sale of assets on the dissolution of a partnership is debit------

A. cash account, credit partners capital account
B. asset account; credit cash account
C. cash account; credit realization account
D. realization account; credit cash account

43. The process of distributing shares to successful applicants is------.

A. allocation
B. apportionment
C. allotment
D. application

44. Interim dividend paid in the year is--------

A. debited to the profit and loss account
B. debited to the income surplus account
C. credited to the profit and loss account
D. credited to the income surplus account

45. The basis of apportionment of insurance on building in departmental accounts is------

A. floor space occupied by the department
B. purchase cost of the building
C. value of the building
D. number of offices in the building

46. Under the cost method in branch accounting, branch gross profit is disclosed in the-------

A. goods sent to branch account
B. branch debtors account
C. branch stock account
D. branch stock adjustment account

Use the following information to answer questions 47 and 48

47. Equity holders fund is-------------

A. 112,471
B. 111,834
C. 101,142
D. 14,027

48. Net book value of fixed assets is----

A. 22,480
B. 21,136
C. 14,354
D. 14,027

49. The authority to incur expenditure in the public sector is-------------

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

50. ''Below the line'' item in public sector accounting means such an item is--------

A. not budgeted for in the current fiscal year
B. less than what is budgeted for
C. budgeted for in the current fiscal year
D. to be carried forward to the next fiscal year

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1. A quality of accounting information is that it should be

A. profitable
B. verifiable
C. appreciable
D. depreciable

2. When the letter "C" is written in front of an entry in the folio column of a cash book, it shows a

A. double entry
B. cash entry
C. contra entry
D. journal entry

3. To show the evidence of payment to a government ministry, the revenue collector issues a

A. receipt voucher
B. payment voucher
C. treasury receipt
D. treasury card

4. The primary concern of shareholders in a business is the

A. ascertainment of taxable profit
B. dividend payable
C. ability to pay interest
D. welfare of employees

5. In a not-for-profit organization, the accumulated fund is

A. current assets plus fixed assets less total liabilities
B. long-term liabilities plus current liabilities
C. fixed assets plus current assets plus long-term liabilities
D. fixed assets less long-term liabilities less current liabilities

Use the following information to answer questions 6 and 7

Cash paid to trade creditors in 2017 was N2,700,000. 00

6. The cost of goods sold was?

A. N3,330,000
B. N2,910,000
C. N2,760,000
D. N2,610,000

7. What was the purchase for 2017

A. N3,480,000
B. N2,850,000
C. N2,700,000
D. -N2,550,000

8. In public sector accounting, salaries of employees are classified as

A. capital expenditure
B. capital receipt.
C. recurrent expenditure
D. recurrent receipt

9. Kadiri paid his debt to Suleman by cheque. The accounting entries in Kadiri s books are: debit

A. Bank Account; credit Suleman's Account
B. Bank Account, credit Debtors Account
C. Suleman's Account; credit Bank Account
D. Suleman's Account; credit Cash Account

10. The concept which seeks to prevent profits from being overstated is

A. materiality
B. consistency
C. prudence
D. periodicity

Use the following information to answer questions 11 and 12

April 11:Sold goods for cash N50,000
April 20: Bought goods for cash N30,000
April 26: Bought postage stamp N5,000
April 28: Cash sales N49,000
April 29: Cash purchases N11,000
April 30: Paid salaries N18,000

11. Total cash receipts for the period is

A. N99,000
B. N64,000
C. N50,000
D. N35,000

12. The cash balance at the end of the period is

A. N99,000
B. N64,000
C. N35,000
D. N34,000

13. The directors of Olu Ltd. recommended a dividend of 10% on 1,000,000 ordinary share capital of N2.00 each. The amount of dividend declared is

A. N200,000
B. N100,000
C. N20,000
D. N10,000

14. Goodwill is recognized in partnership when

A. the business makes a huge profit
B. the business has adequate bank balance
C. a partner is dormant
D. a new partner is admitted

15. The mark-up on a product is 2/3. The margin is

A. 3/5
B. 2/5
C. 1/3
D. 2/9

16. Quick ratio is calculated as X-y:z, where

A. x= stock; y=current assets and z= long-term liabilities
B. x = current assets; y = debtors and z= current liabilities.
C. x=current assets; y= stock and z=current liabilities
D. x= debtors; y= stock and z=current assets.

Use the following information to answer questions 17 and 18

17. The closing capital is

A. 16,800
B. 14,300
C. 8,300
D. 7300

18. The working capital is

A. 6,440
B. 3,880
C. 3,500
D. 1,320

19. In a single-entry accounting, purchases are ascertained using a

A. trading account
B. debtors control account
C. statement of affairs
D. creditors control account

20. Goods bought from Sanmah for Le1,600 was entered into Shamail's Account. This is an error of

A. compensation
B. commission
C. original entry
D. principle

21. When closing stock is undervalued, the cost of goods sold would be

A. overstated and the gross profit understated
B. understated and the gross profit overstated
C. understated and the gross profit overstated
D. understated and the gross profit understated

22. Where fixed capital account is maintained, partners Share of profit is transferred to the

A. debit side of the capital account
B. credit side of the capital account
C. credit side of partner's current account
C. debit side of partners current account

23. When bank charges are deducted from a customer's account, the balance on the bank statement would be

A. more than the cash book balance
B. less than the cash book balance
C. equal to the cash book balance
D. added to the cash book balance

24. Companies issue shares to the public in order to

A. reduce the number of directors
B. reduce the number of shareholders
C. raise capital
D. generate profit

25. Sulah took two textile materials worth N500 from his business for his children's use. This would be treated as

A. loan
B. stock
C. drawings
D. sales

Use the following information to answer questions 26 and 27.
Ajem and Ogah were in partnership sharing profits and losses in the ratio 2:3. Interest on capital and drawings were 5% and 3% respectively. The following details relate to the partnership for the year 2017.

26. Ogah's share of profit was

A. 51,150
B. 50,250
C. 34,100
D. 33,500

27. Ajem's current account balance was

A. 65,000
B. 60,000
C. 42,000
D. 40,000

28. Interest on drawings amounted to

A. 6,000
B. 1,500
C. 900
D. 600

29. Debtors Control Account is kept in the

A. sales ledger
B. nominal ledger
C. personal ledger
D. general ledger

30. Where there is provision for depreciation, fixed asset is shown in the balance sheet at i. cost less depreciation for the period only.

ii. cost less total depreciation to date.
iii. written down values

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

31. The partner whose liability goes beyond his capital is a

A. nominal partner
B. general partner
C. limited partner
D. dormant partner

32. An effect of increase in the provision for depreciation is

A. decrease in gross profit
B. increase in net profit
C. increase in gross profit
D. decrease in net profit

33. Uncredited cheques refer to cheques not yet credited

A. in the cash book
B. by the bank
C. by the drawer
D. in the ledger

34. Interim dividend paid in a year is

A. debited to the Income Surplus Account/ Profit and Loss Appropriation Account
B. credited to the Income Surplus Account Profit and Loss Appropriation Account
C. debited to the Profit and Loss Account
D. credited to the Profit and Loss Account

35. A feature of government accounting is that the

A. fixed assets are depreciated
B. objective is to report profit made by the government
C. accounts are prepared on accrual basis
D. accounts are prepared on cash basis

Use the following information to answer questions 36 and 37

36. The prime cost is

A.57,000
B.45,000
C.42,000
D.39,000

37. Factory overhead cost is

A. 25,000
B. 415,000
C. 12,000
D. 7,000

38. Capital and drawings accounts are kept in the

A. general ledger
B. purchases ledger
C. sales ledger
D. private ledger

39. Set-off is carried out in the control account when

A. a business organization is both a customer and a supplier
B. customers refuse to pay their debts
C. the debtors settle their accounts
D. customers cheques are dishonoured

39. Capital and drawings accounts are kept in the

A. general ledger
B. purchases ledger
C. sales ledger
D. private ledger

40. Debtors balance (01/01/16) – Le2,518; Cash received – Le10,000; Discount allowed – Le280; Interest charged to debtors – Le63; Debtors balance (30/06/16) – Le1,450. The credit sales is

A. Le11,730
B. Le9,149
C. Le2,581
D. Le2,518

41. An example of a nominal account is

A. Kofi and Ali Account
B. Plant and Machinery Account
C. Profit and loss account
D. cash and bank account

42. The concept that recognizes revenue at the time of sale and not only when cash is received is

A. cost concept
B. realization concept
C. accrual concept
D. duality concept

43. The accounting concept which stipulates that income and expenses should be matched to determine profit or loss is

A. cost concept
B. accrual concept
C. objectivity concept
D. realization concept

44. The document used to correct an undercharge on an invoice is

A. credit note
B. debit note
C. receipt
D. voucher

Use the following information to answer questions 45 to 47

45. Carriage inwards for Dept. B is

A. D1,600
B. D960
C. D800
D. D640

46. Net profit for Dept. A. is

A. D6340
B. D5,860
C. D4,960
D. D4,900

47. Net profit for Dept. B is

A. D17,460
B. D16,600
C. D16,260
D. 15,940

Use the following information to answer questions 48 and 49

A firm bought a lathe machine for Le 45,600 on 1s January 2015. The life span was estimated to be 20 years while scrap at the end of the period was valued at Le 1,600. It was to be depreciated by the fixed installment method.

48. The depreciation per annum is

A. 2,360
B. 2,280
C. 2,200
D. 1,600

49. The net book value of the machine as at 31st December 2017 was

A. 44,000
B. 41,200
C. 39,000
D. 38,760

50. The net book value of the machine as at 31st December 2017 was

A. 44,000
B. 41,200
C. 39,000
D. 38,760

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1. A quality of accounting information is that it should be

A. profitable
B. verifiable
C. appreciable
D. depreciable

2. When the letter "C" is written in front of an entry in the folio column of a cash book, it shows a

A. double entry
B. cash entry
C. contra entry
D. journal entry

3. To show the evidence of payment to a government ministry, the revenue collector issues a

A. receipt voucher
B. payment voucher
C. treasury receipt
D. treasury card

4. The primary concern of shareholders in a business is the

A. ascertainment of taxable profit
B. dividend payable
C. ability to pay interest
D. welfare of employees

5. In a not-for-profit organization, the accumulated fund is

A. current assets plus fixed assets less total liabilities
B. long-term liabilities plus current liabilities
C. fixed assets plus current assets plus long-term liabilities
D. fixed assets less long-term liabilities less current liabilities

Use the following information to answer questions 6 and 7