1. Which of the following is the basis accounting equation?
A. assets = capital + liabilities
B. capital = assets + liabilities
C. liabilities = assets + capital
D. assets = liabilities + equity
2. A sales Day book is used for recording
A. credit sales
B. sales returns
C. hire purchase
D. cash sales
3. An analytical cash book is used to
A. indicate source of cash received
B. categorise petty cash payment
C. separate cash and bank balance
D. analyse amounts due from debtors
4. Which of the following concepts is exposed to hold when a proprietor makes a drawing of goods or cash from the business?
A. business entity
B. realization
C. going concern
D. dual-aspect
5. In a partnership business, the net profit serves as opening figure for
A. trading account
B. profit and loss account
C. current account
D. appropriation account
6. Which of the following is the effect of an increase in the provision for discount allowed?
A. increase in net profit
B. decrease in gross profit
C. decrease in net profit
D. increase in gross profit
7. In the preparation of manufacturing accounts, prime cost plus factory overheads equal to cost of
A. materials available
B. production
C. sales
D. materials used
8. Returns inwards is also called
A. purchases returns
B. sales returns
C. goods on sales or return
D. goods in transit
Use the following information to answer questions 9 to 11
Tale Ltd. has 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each. Both were fully paid
9. The balance of the profit and loss appropriation account as at the end of the year was
A. ₦16,000
B. ₦10,000
C. ₦5,400
D. ₦1,400
10. The authorized capital of Tale Ltd is
A. ₦176,000
B. ₦166,000
C. ₦160,000
D. ₦16,000
11. The dividend payable to preference shareholders is
A. ₦9,000
B. ₦6,000
C. ₦3,000
D. ₦2,400
12. Which of the following is not a characteristic of a computer?
A. large storage capacity
B. Very fast
C. highly accurate
D. highly diligent
13. Final accounts of a not-for-profit making organization is made up of
A. subscription accounts and income and expenditure accounts
B. subscriptions accounts and balance sheet
C. income and expenditure account and balance sheet
D. receipts snd payments account and income and expensiture account
14. Which of the following is a debit entry in debtors control account?
A. credit sales
B. bad debts
C. returns inwards
D. discounts allowed
Use the following information to answer question 15 and 16
16. Net profit is
A. ₦ 43,000
B. ₦25,000
C. ₦23,000
D. ₦18,000
17. Closing capital is
A. ₦81,000
B. ₦78,000
C. ₦74,000
D. ₦64,000
17. Which of the following is not a debit item in a partnership appropriation account?
A. capital
B. drawings
C. creditors
D. bank balance
18. Which of the following is not a debit item in partners appropriation account?
A. interest on capital
B. salary
C. share of profit
D. share of loss
19. The difference between factory cost of goods produced and its market value is
A. interest
B. premium
C. manufacturing profit
D. manufacturing overhead
20. Which of the following is not an item in the appropriation account of a company?
A. general reserve
B. company tax
C. debenture interest
D. goodwill written off
21. The purchase of furniture, an asset to the company was debited to purchases account. This is an error of
A. omission
B. original entry
C. principle
D. commission
22. Which of the following terms is not used to describe the total amount stated in the memorandum of association approved by the registrar of companies?
A. authorized capital
B. registered capital
C. issued capital
D. nominal capital
23. A cash payment of ₦85 to Regina was entered in the books as ₦58. The entries to correct the error are: debit
A. Regina's account ₦27 : credit cash account ₦27
B. Cash account ₦27 : credit Regina's account ₦27
C. Regina's account ₦143 : credit cash account ₦143
D. cash account ₦143 : credit Regina's account ₦143
Use the following information to answer question 24 to 26
24. The gross profit is
A. Le 47,200
B. Le 42,200
C. Le 37,200
D. Le 19,800
25. The net profit is
A. Le 42,200
B. Le 37,200
C. Le 32,200
D. Le 19,200
21
The purchase of furniture, an asset to the company was debited to purchases account. This is an error of
A. omission
B. original entry
C. principle
D. commission
22
Which of the following terms is not used to describe the total amount stated in the memorandum of association approved by the registrar of companies?
A. authorized capital
B. registered capital
C. issued capital
D. norminal capital
26. The cost of goods sold is
A. Le 185,100
B. Le 139,200
C. Le 136,200
D. Le 131,200
27. The class of shares to which payment of dividend depends on profit is
A. forfeited shares
B. ordinary shares
C. bonus shares
D. preference shares
28. Payment for shares in installments is done by means of
A. calls
B. circulars
C. subscription
D. invitation
29. Mark-up on goods sent to branch are recorded in the books by crediting
A. stock adjustment account; debiting branch stock account
B. goods sent to branch accounts; debiting branch stock account
C. bank stock account; debiting stock adjustment account
D. branch stock account; credit cash account
30. Which of the following is not part of cost of production?
A. direct material cost
B. direct wages
C. factory overheads
D. administrative overheads
Use the following information to answer questions 31 and 32
SULAY LOCAL GOVERNMENT
31. Recurrent expenditure is
A. D180,000
B. D164,000
C. D150,000
D. D30,000
32. Capital expenditure is
A. D780,000
B. D750,000
C. D600,000
D. D500,000
33. Which of the following is not a subsidiary book?
A. sales journal
B. cash book
C. purchases ledger
D. general journal
34. In bank reconciliation, when a cash book shows a credit balance, uncredited cheques are
I. deducted from the cash book balance.
II. added to the bank statement balance.
III. added to the cash book balance
A. I and II only
B. I,II and III
C. II and III only
D. III only
35. When provision is made for doubtful doubt, the accounting entries are
A. debit profit and loss account; credit provision for doubtful debt account
B. debit debtors account; credit trading account
C. debit profit and loss account; credit sales account
D. debit trading account; credit debtor’s account
36. An approach for discovering missing figures in incomplete records is the use of
A. cash book
B. control accounts
C. trading accounts
D. balance sheets
37
37. A merchant paid ₦180,000 on rent for 18 months bu charged ₦120,000 to profit and loss account for the year. The concept applied is
A. business entity
B. going concern
C. accrual
D. materiality
38. Which of the following is an advantage of the imprest system?
A. rewarding the imprest holder
B. reducing the burden of petty cashier
C. reimbursing the petty cashier regularly
D. reducing the posting for small expenses into the main ledger
36. Which of the following is not a subsidiary book?
A. sales journal
B. cash book
C. purchases ledger
D. general journal
Use the following information to answer question 39 and 40
Henik Plc has departments A and B and has made the following information available concerning its operations;
39. How much commission was apportioned to Department a?
A. ₦9,600
B. ₦3,600
C. ₦2,000
D. ₦1,600
40.Rent apportioned to Department B is
A. ₦4,000
B. ₦3,600
C. ₦2,000
D. ₦1,600
41. The entries to record goods bought for cash are: debit
A. cash account; credit purchases account
B. purchases account; credit cash account
C. purchases account; credit stock account
D. purchases account; credit goods account
42. Carriage inwards is posted to
A. trading account
B. profit and loss account
C. appropriate account
D. balance sheet
43. Repairs to air conditioners was debited to office equipment account. This is an error of
A. principle
B. commission
C. original entry
D. compensation
44. The practice of identifying with one constant approach where a number of approach exist for solving an accounting problem is the convention of
A. conservatism
B. consistency
C. prudence
D. materiality
Use the following to answer question 45 and 46
45. Closing debtors figure is
A. ₦140,000
B. ₦134,500
C. ₦80,000
D. ₦69,000
46. Closing creditors figure is
A. ₦115,500
B. ₦110,000
C. ₦95,500
D. ₦44,500
47. Which of the following is a nominal account?
A. bank account
B. cash account
C. sales account
D. stock account
48. Which of the following is a storage device?
A. diskette
B. key board
C. printer
D. monitor
49. Trade creditors personal accounts are found in the
A. purchases ledger
B. sales ledger
C. general ledger
D. sales day book
50. Which of the following is not an instrument for controlling public expenditure?
A. constitution
B. financial regulation
C. budget
D. memorandum