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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.

						₦
Cost of Motor vehicle-1/1/12						85,000
Residual value						5,000

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

									Le
Capital
Aye									20,000
Bee									30,000
Drawings
Aye									8,000
Bee									2,000
Profit for the year									10,000
Interest on capital									6%
Interest on drawings									10%

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

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