ACC204

Category: ACC204

ATTENTION:

Kindly note that you will be presented with 50 questions randomized from the NOUN question bank. Make sure to take the quiz multiple times so you can get familiar with the questions and answers, as new questions are randomized in each attempt.

Good luck!

ACC204

1 / 50

A. What is an imprest system?

1. Is part of computerized accounting

2. Helps to control petty cash.

3. Records the use of a company's seal.

4. Helps to reconcile the cash book with the bank statement.

2 / 50

B. When there is inflation, the historical cost convention has the effect of _________

1. Understating cash flow and overstating cash in the statement of financial position.

2. Overstating cash flow and understating cash in the statement of financial position

3. Understating profits and overstating statement of financial position values.

4. Overstating profits and understating statement of financial position values.

3 / 50

C. Items that are normal to activity of an enterprise and abnormal as a result of their infrequency of occurrence and size are known as..........................

4 / 50

D. During year 2016, Victor paid rent amounting to 500,000. He owed 50,000 at the beginning of the year and by 31 December 2016, he had paid rent in advance of 100,000. His rent charge for 2016 was?

1. 350000

2. 550000

3. 500000

4. 450000

5 / 50

E. ............... a chronological record of the transactions of a business entity

6 / 50

F. The process of locating and eliminating errors from a program is known as ________

1. Debugging

2. Sorting

3. Tracing

4. Dump

7 / 50

G. Annual rent payable is 500,000. Rent prepaid at 1 January, 2016 was 80,000 and rent accrued at 31December 2016 was 60,000. How much was paid in respect of rent in 2016

1. 360000

2. 420000

3. 500000

4. ¢480,000

8 / 50

H. Which one of the following should be accounted for as capital expenditure?

1. The purchase of a car by a garage for re-sale

2. Cost of painting a building.

3. The replacement of windows in a building

4. Legal fees incurred on the purchase of a building.

9 / 50

I. The difference between the monetary value of output and input of goods and services attributed to a business is called..........................

10 / 50

J. The cash book of a trader shows an overdrawn account. Which of the following will reduce the balance when the necessary recordings are completed?

1. Dividend received by bank on behalf of customer.

2. Unpresented cheques

3. Bank charges

4. Uncredited cheques

11 / 50

K. SSG bought a machine for N40,000 in January year 1. The machine had an expected useful life of six years and an expected residual value of N10,000. The machine was depreciated on the straight-line basis where a full year�??s charge in made in the year of purchase and none in the year of sale. In December year 4, the machine was sold for N15,000. The company has a policy in its internal accounts of combining the depreciation charge with the profit or loss on disposal of assets. Its year end is 31 December.What is the total amount of profit/loss charged to the income statement over the life of the machine?

1. B. 20,000

2. C. 25,000

3. A. 15,000

4. D. 30,000

12 / 50

L. On 1 May, East owed a supplier N1,200. During the month of May, East:(1)Purchased goods for N1,700 and the supplier offered a 5% discount for payment within the month.(2)Returned goods valued at N100 which had been purchased in April. (3)Sent a cheque to the supplier for payment of the goods delivered in May.What is the balance on the supplier�??s account at the end of May?

1. N1300

2. N1185

3. N1015

4. N1100

13 / 50

M. Which of the following would NOT be posted to the credit of payables control account

1. Transfer of debit balances to receivables ledger

2. Total credit purchases

3. Set-off contra

4. Transfer of credit balances from receivables ledger

14 / 50

N. The excess of current assets over current liabilities is known as ________

15 / 50

O. An item of property, plant and equipment costing N600,000 was bought on 1 January, 2011. Depreciation was provided at 20% annually on straight-line basis and computed up to the point of sale. It was sold on 30 June, 2014 for N157,500. In the year of sale, profit is _______

1. Reduced by N22,500

2. Increased by N22,500

3. Increased by N157,500

4. Reduced by N120,000

16 / 50

P. The VAT which is charged by suppliers on goods purchased is termed....................

17 / 50

Q. S purchased equipment for 80,000 on 1 July year 1. The company's accounting year end is 31 December. It is S�??s policy to charge a full year's depreciation in the year of purchase. S depreciates its equipment on the reducing balance basis at 25% per annum. What is the net book value of the equipment at 31 December year 4?

1. A. Nil

2. C. 29,531

3. D. 33,750

4. B. 25,312

18 / 50

R. N operates an imprest system for petty cash. On 1 February, the float was N300. It wasdecided that this should be increasedto N375 at the end of FebruaryDuring February, the cashier paid N20 for window cleaning, N100 for stationery and N145 forcoffee and biscuits. The cashier received N20 from staff for the private use of the photocopier and N60 for a miscellaneous cash sale.What amount was drawn from the bank account for petty cash at the end of February?

1. N185

2. N315

3. N260

4. N275

19 / 50

S. A customer owing 200,000 was allowed to pay 180,000 in full settlement of his indebtedness. This results in a _____

1. Receivables/Cash/Capital Decrease Receivables, increase cash and decrease capital

2. Decrease in capital, decrease in asset and increase in liability

3. Decrease in asset, decrease in capital and decrease in liability

4. Decrease in liability, increase in asset and increase in capital

20 / 50

T. A company bought a machine on 1 October year 1 for N52,000. The machine had an expected life of eight years and an estimated residual value of N4,000. On 31 March year 6, the machine was sold for N35,000. The company's year end is 31 December. The company uses the straight-line method for depreciation and it charges a full year's depreciation in the year of purchase and none in the year of sale. What is the profit or loss on disposal of the machine?

1. C. Profit 10,000

2. A. Loss 13,000

3. B. Profit 7,000

4. D. Profit 13,000

21 / 50

U. A cheque issued and which remains with the payee for more than six months becomes a _______ cheque

22 / 50

V. The excess of current assets over current liabilities is ........................

23 / 50

W. Which of the following is NOT correct in differentiating between sole trader and limited liability companies?

1. A sole trader's financial statements are private and never made available to any other equity holder

2. Drawings would only appear in the financial statements of a sole trader

3. A sole trader is fully and personally liable for any losses that the business might make

4. Only companies have share capital

24 / 50

X. The core objective of accounting is ________

1. To fulfill statutory requirements

2. Keep record or transactions

3. Provide financial information to the users of such information

4. Maintain records of assets and liabilities

25 / 50

Y. What term describes a possible obligation that arises from past event, where the existence of the obligation will be confirmed only in the future, with the occurrence or non-occurrence of an event that is not wholly within the control of the enterprise?

26 / 50

Z. Which of the following would result from an increase in the allowance for doubtful debts?

1. decrease in gross profit

2. An increase in asset

3. An increase in gross profit

4. A decrease in net profit An increase in net profit .

27 / 50

AA. B operates the imprest system for petty cash. At 1 July there was a float of N150, but it was decided to increase this to N200 from 1 August onwards. During July, the petty cashier received N25 from staff for using the photocopier and a cheque for N90 was cashed for an employee. In July, cheques were drawn for N500 for petty cash.What was the total expense paid from petty cash in July?

1. 615

2. 515

3. 435

4. 385

28 / 50

AB. The adjusted cash book balance is _______

1. N155,500

2. N100,000

3. N109,500

4. N209,500

29 / 50

AC. A Motor Van costs N100,000, Furniture N5,000, Creditors N25,000,. What is the capital account balance?

30 / 50

AD. H began trading on 1 July. The company is now preparing its accounts for the accounting year ended 30 June year 1. Rent is charged for the year from 1 April to 31 March, and was N1,800 for the year ended 31 March year 1 and N2,000 for the year ended 31 March year 2. Rent is payable quarterly in advance, plus any arrears, on 1 March, 1 June, 1 September and 1 December.The charge to H �??S income statement for rent for the year ended 30 June year 2 is _____

1. B. 1,700

2. D. 1,900

3. A. 1,650

4. C. 1,850

31 / 50

AE. Z's bank statement shows a balance of N825 overdrawn. The bank statement includes bank charges of N50, which have not been entered in the cash book. There are unpresented cheques totaling N475 and deposits not yet credited of N600. The bank statement incorrectly shows a direct debit payment of N160, which belongs to another customer.What figure for the bank balance should be shown in the statement of financial position?

1. N790 overdrawn.

2. N540 overdrawn.

3. N590 overdrawn.

4. N840 overdrawn

32 / 50

AF. When recognizing income under the accrual basis, which of the following statements is correct

1. Income is recognised when earned and cash is received

2. Income is recognized only when cash is received

3. Income is recognized only when it is not certain that cash will be received

4. Income is recognized when earned and not necessarily when cash is received

33 / 50

AG. The opening inventory of a firm at the beginning of the financial year is N30,0000 and at the end of the financial year it isN20,000 while the sales and purchases are N350,000 and N250,000 respectively.What is the Gross Profit or Loss?

1. N90,000 Profit

2. N10,000 Loss

3. N90,000 Loss

4. N50,000 Profit

34 / 50

AH. The profit of a business may be calculated by using which one of the following formulae?

1. D. Closing capital - drawings + capital introduced - opening capital

2. C. Opening capital + drawings - capital introduced - closing capital

3. B. Closing capital + drawings - capital introduced - opening capital

4. A. Opening capital - drawings + capital introduced - closing capital

35 / 50

AI. The source of data for the recording of sales day book of a business enterprise is ________

1. Official receipt

2. Returns inward note

3. Returns outward note

4. Invoice

36 / 50

AJ. Which ONE of the following attributes is the most important for any code to possess in order to be of use in an accounting system?

1. A combination of letters and digits to ensure input accuracy.

2. Each code is a unique number.

3. Easy to change the code number.

4. Linked to assets, liabilities, income, expenditure and capital.

37 / 50

AK. A company's net profit for the year ended 30 June, 2014 was N6,500,000. It was found that N1,800,000 paid for maintenance of motor vehicles had been debited to motor vehicle account and depreciated at 25% on cost (full year charge) in line with the company's policy. What would be the net profit after adjusting for the error?

1. N5,150,000

2. N4,700,000

3. N7,800,000

4. N1,350,000

38 / 50

AL. A Motor Van costs N100,000, Furniture N5,000, Creditors N25,000, what is the Loan amount. If Loan is 30% of the creditor's figure

39 / 50

AM. The amount of wages paid to an employee after making appropriate deductions is referred to as ________

40 / 50

AN. The following are optical Disks EXCEPT __________

1. CD-ROMs

2. DVD: Digital video Disk

3. WORMS

4. Floppy disk

41 / 50

AO. Electricity bill of N10,000 incurred during the year was not charged as an expense for that year. The error committed is ....................

42 / 50

AP. What is the depreciable amount of the machine?

1. 240000

2. 240000

3. 48000

4. 200000

43 / 50

AQ. Using straight line method, what would be the annual depreciation charge for the second year of usage?

1. 40000

2. 48000

3. 40250

4. 48250

44 / 50

AR. The source of data for recording the Returns Inward Book of a business entity is ________

1. Invoice

2. Payment voucher

3. Credit note

4. Debit note

45 / 50

AS. The difference between an income statement and an income and expenditure account is that __________

1. An income and expenditure account is an international term for an Income statement

2. An income statement is prepared on an accruals basis and an income and expenditure account is prepared on a cash flow basis.

3. An income statement is prepared for a business and an income and expenditure account is prepared for a not for profit making organisation.

4. An income statement is prepared for a manuf acturing business and an income and expenditure account is prepared for a non manufacturing business

46 / 50

AT. The document that is filled/completed to support cash lodgement in a bank is called ________

47 / 50

AU. The effect of the error on the financial statements, if not detected, would include the following except

1. The profit of the outfit will be understated

2. The inventory of the outfit will be understated

3. The purchases in the financial statements will be overstated.

4. The non-current assets account will be understated

48 / 50

AV. The specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements are called ____________

49 / 50

AW. Depreciation of an asset with fixed period of legal life is often referred to as ________

1. Appreciation

2. Obsolescence

3. Deterioration

4. Amortization

50 / 50

AX. Using straight line method, what would be the annual depreciation charge for the second year of usage?

1. 40000

2. 40250

3. 48000

4. 48250

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