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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
| 01/01/17 | 31/12/17 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ₦ | ₦ | |||||||||||||
| Trade creditors | 630,000 | 780,000 | ||||||||||||
| Stock | 540,000 | 480,000 |
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
| D | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening capital | 10,800 | |||||||||||||
| Drawings | 2,500 | |||||||||||||
| Trade creditors | 2,500 | |||||||||||||
| Trade debtors | 2,880 | |||||||||||||
| Cash in hand | 1,000 | |||||||||||||
| Net profit | 6,000 |
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.
| Ajem | Ogah | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GHȼ | GHȼ | |||||||||||||
| Capital Account | 60,000 | 65,000 | ||||||||||||
| Current Account | 40,000 | 50,000 | ||||||||||||
| Drawings | 20,000 | 30,000 | ||||||||||||
| Salary | 10,000 | – |
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
| $ | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of raw materials available | 32,000 | |||||||||||||
| Manufacturing wages | 10,000 | |||||||||||||
| Factory expenses | 5,000 | |||||||||||||
| Royalty | 3,000 | |||||||||||||
| Factory rent | 2,000 | |||||||||||||
| Depreciation of plant and machinery | 5,000 | |||||||||||||
| Closing stock of raw materials | 3,000 |
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
| Debt A | Debt B | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| D | D | |||||||||||||
| Sales | 16,000 | 24,000 | ||||||||||||
| Purchases | 9,000 | 6,000 | ||||||||||||
| Opening stock | 600 | 500 | ||||||||||||
| Closing stock | 900 | 600 | ||||||||||||
| Discount allowed | 800 | 1,200 | ||||||||||||
| Carriage inwards(proportion to sale) | 1,600 |
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
Here’s the reformatted table into two columns for easy reading: “`html
| Question | Answer | Question | Answer |
|---|---|---|---|
| 1 | B | 21 | A |
| 2 | C | 22 | C |
| 3 | B | 23 | B |
| 4 | B | 24 | C |
| 5 | A | 25 | C |
| 6 | B | 26 | A |
| 7 | B | 27 | D |
| 8 | C | 28 | B |
| 9 | C | 29 | A |
| 10 | C | 30 | D |
| 11 | A | 31 | B |
| 12 | C | 32 | D |
| 13 | A | 33 | A |
| 14 | B | 34 | A |
| 15 | B | 35 | B |
| 16 | C | 36 | C |
| 17 | B | 37 | C |
| 18 | D | 38 | D |
| 19 | D | 39 | A |
| 20 | B | 40 | B |
| 41 | C | 42 | B |
| 43 | B | 44 | B |
| 45 | B | 46 | B |
| 47 | C | 48 | C |
| 49 | B | 50 | B |