Document

1. The original record containing the details of transaction which serve as a basis for posting is

A. general ledger
B. source document
C. subsidiary book
D. trial balance

2. In the preparation of financial statements, full disclosure of minor events are ignored in line with

A.accrual concept
B. money measurement concept
C. business entity concept
D. materiality concept

3. A linmitation of the mobey measurement is that

A. It results in inaccurate financial statement
B. financial statement is not easily understood
C. important non-monetary activities are not replaced.
D. the reports are not comparable to the of other businesses

4. Where partners maintain a flunctuating capital account, partner share of profit is credited to

A. capital account
B. profit and loss appropriation account
C. current account
D, profit and loss account.

5. The difference between the market value of goods produced, and the cost of production is

A. net profit on goods sold.
B. gross profit on Manufacturing
C. closing stock of working-in progress
D. prime cost of Manufacturing

Use the following information to answer the question 6 and 7 Attama and Wawa were in partnership sharing profits and losses innthe ratio $4:3$ Attama was entitled to a salary of $D 13,000$ per annum. A net profit of $D 34,000$ was made for the year.

6. The residual profit of the business for the year is

A. D 47,000
B. D 34,000
C. D 22,000
D. D 21,000

7. Attama share of profit is

A. D 21,000
B. D 19,428
C. D 12,000
D. D 9,000

8. Reducing balance method charges depreciation as fixed percentage of the

A. net book value of asset
B. cost of asset
C. market value of asset
D. accummulated depreciation of asset

9. Good returned to the supplier is recorded in the account as: debit.

A. Sales Returns Account; credit Supplier’s Account
B. Purchase Return Account; credit Supplier’s Account
C. Supplier’s Account; credit Purchases Return Account
D. Supplier’s Account; credit Purchases Account

10. Net profit of a sole proprietor is transfered to the

A. profit and loss account
B. profit and loss appriciation account
C. capital account
D. drawings’s account

11. Accounting eveolved out of the need of business for

A. profit making.
B. record keeping.
C. increasing sales.
D. obtaining finance

12. Sales account was undercast by $GH ȼ 1,000$. When this is corrected, bothe the gross profit and the net profit would

A. increase by GH ȼ 2,000
B. increase by GH ȼ 1,000
C. decrease by GH ȼ 1,000
D. decrease by GH ȼ 2,000

use the following information to answer questions 13 and 14

					Le
Sales for the year					450,000
Purchase for the year					230,000
Opening stock					60,000
Closing stock					40,000

13. The stock turnover period is

A. 88 days
B. 73 days
C. 58 days
D. 41 days

14.The mark-up is

A. $88\%$
B. $80\%$
C. $44.44\%$
D. $26.67\%$

15. Company as a legal entity means that it

A. must always have a company’s lawyer.
B. can sue and be sued
C. must settle disputes among shareholders in court
D. should prepare account approved by a lawyer

16. The type of stock recorded in the trading account of a Manufacturing business is

A. raw materials
B. work-in-progress.
C. consummables
D. finished goods

17. Account of fixed asset are kept in the

A. purchase ledger
B. private ledger
C. slaes ledger
D. general ledger

18. Recurrent expenditure of a local government include

A. erection of of market stalls
B. repayment of loans
C. purchase of office equipement
D. purchase of office stationery

19. The accounting princple of double entery states that

A.debit the giver and credit of the recorder
B. asset must be equal to capital plus Liabilities
C. every debit entry must have a corresponding credit entry.
D. debit entry increases Liabilities while credit entry increases assets

20. Lima paid off debt of D 2,500 owned to Dango by cash. The entry in Lima’s book are : debit

A. cash D 2,500; credit Dongo D 2,500
B. Dongo D 2,500; credit Dongo D 2,500
C. Bad Debt D 2,500; credit Dongo D 2,500
D. Dongo D 2,500; credit Bad Debt D 2,500

21. The petty cash account has an imprest of GH ȼ 36,000 and a debt balance of GHȼ 10,000 at the end of the month. The reinbursement required would be

A. GHȼ 46,000
B. GHȼ 36,000
C. GHȼ 26,000
D. GHȼ 10,000

22. Commercial activities and undertaken by a social club to raise funds include

A. donation
B. recording
C. reporting
D. summarizing

23. The final stage of accounting process is

A. interpretation
B. recording
C. reporting
D. summarizing

24. The value of goods sent to a branch is debited to the

A. goods sent to the Branch Account
B. Branch Debtor Account
C. Branch Adjustment Account
D. Branch Stock Account

25. The major source of revenue for central/federal government is

A. tenement rate
B. exise duty
C. market toll
D. parking toll

26. A business includes $50\%$ mark-up on all its products.This would mean margin of

A. $66\frac{2}{3}$
B.$ 66\frac{1}{3}$
C. $33\frac{2}{3}$
D. $33\frac{1}{3}$

Use the following information to answer questions 27 to 28

					GHȼ
Gross profit					50,000
Discounts received					3,300
Discounts allowed					2,500
Net profit					26,500
Closing of goods sold					184,500

27. Sales for the period is

A. GHȼ 234,400
B. GHȼ 210,500
C. GHȼ 133,600
D. GHȼ 76,900

28. Other operating expenses for the period is

A. GHȼ 27,300
B. GHȼ 25,700
C. GHȼ 24,700
C. GHȼ 23,900

29. All cash transaction of a non-for-profit-making organization are recorded in

A. three-column cash book
B. income and expenditure account
C. subscriptions account
D. recipts and payments account

30. Subcidiary books of account are used to record transactions

A. made in the same period
B. of a similar nature
C. involving minor amount
D. without source documents

31. Members of a non-profit-making organization

A.eran dividend on their contributions
B. do not receive surplus at the end of the year
C. are paid interest on their contributions
D.share profits according to their contribution

32.Accounting information that is useful for the intended purpose and would make a difference in decision making is

A.comparable
B. consistent
C. relevant
D. reliable

33. Manufacturing account is prepared to determine the

A. cost of goods sold
B. cost of goods produced
C. profit on goods produced
D.value of work-in-progress

34. The concept that enables abusiness to determine the actual profit or loss for a perticular period is

A. accrual concept
B. business enetity concept
C. consistent concept
D. going concern concept

35. An amount set aside out of profit for a specific purpose is

A.reserved
B. Liability
C. provision
D. Discount

Use the following information to to answer the questions 36 and 37

					₦
Creditor(01/10/19)					223,000
Creditor (31/12/19)					316,000
Credit purchased					1,426,000
Discount received					64,000
Company’s cheque dishonored					90,000

36. Payment to creditors is

A. ₦ 1,423,000
B. ₦ 1,359,000
C. ₦1,333,000
D. ₦1,295,000

37. An amount owned to creditor on 31/12/19 is

A. ₦406, 000
B. ₦342,000
C. ₦316,000
D. ₦226,000

38. The objective of preparing departmental accounts is to determine the

A. sales of each department
B. total cost attributable to each department
C. capital employed by each department
D. profitablility of each department

39. The partner who partakes in the management of the firm, and assumes the personal responsibility for the firm’s debt is a

A. general partner
B. sleeping partner
C. quasi partner
D. limited partner

40. Acid test ratio of a firm measures the

A. profitablility of the firm
B. capital adequacy of the firm
C. liquidity of a man
D. quality of debtor of a firm

Use the following information to answer questions 41 and 42

Cost of asset (01/01/18)=N= 600,000

Annual depreciation charge is $15\%$ on reducing balance basis.

41. Depreciations for the years 2019 is

A. ₦180,000
B. ₦166,500
C.₦90,000
D. ₦76,500

42 The net book value of the asset at 31/12/2019 is

A. ₦523,500
B. ₦510,000
C. ₦433,500
D. ₦420,000

43. Wages accrued is showned in the balance sheet as

A. an asset
B. an income
C. an expense
D. a Liability

44. Provision is made in the account involved in the anticipated loss is

A. too much
B. not significant
C. not certain
D. well known

45. Accounting concepts are rules of accounting which are to be

A. taught in the accounting classes.
B. implemented by all professional bodies.
C. followed in the preparation of financial statements
D. applied in correction of business errors

46. rent expense for 2018 was

A. GHȼ 84,000
B. GHȼ 48,000
C. GHȼ 36,000
D. GHȼ 12,000

47. The balance of rent in the balance sheet would be

A. current asset of GHȼ 36,000
B. current asset of GHȼ 12,000
C. current liability of GHȼ 12,000
D. current liability of GHȼ 48,000

48. Suspense account is used in the correction of

A. all errors in the trial balance
B. errors that effect the aggreement of the trial balance
C. errors that do not effect the the agreement of the trial balance
D. errors that do not effect the accuracy of the net profit

49. a transaction tha would cause the cash book balance to be less than the bank statement balance is

A. direct debit
B. standing order
C. bank charges
D. Unpresented charges

50. The cost of goods sold for the year is $Le$200,000 and the mark-up is $30\%$. The sale for the year is

A. Le260,000
B. Le200,000
C. Le140,000
D. Le60,000

Here’s the reformatted table with two columns for easier viewing: “`html

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

Now, the questions and answers are organized side by side in two columns for better readability. Let me know if you need further adjustments!