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. 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. Unpresented cheques

2. Bank charges

3. Dividend received by bank on behalf of customer.

4. Uncredited cheques

2 / 50

B. For every debit entry there is a corresponding credit entry. This principle represents _______

3 / 50

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

1. Transfer of credit balances from receivables ledger

2. Set-off contra

3. Transfer of debit balances to receivables ledger

4. Total credit purchases

4 / 50

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

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

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

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

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

5 / 50

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

6 / 50

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

7 / 50

G. 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. A. 15,000

2. B. 20,000

3. C. 25,000

4. D. 30,000

8 / 50

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

9 / 50

I. State the journal entry to record a motor vehicle of N4,500,000 purchased on credit from SCOA motors.

10 / 50

J. The Agreement of a trial balance will not disclose ONE of the following fundamental errors in the accounting books.

1. Error in computation of balances

2. Transposition of figures

3. Errors of principle

4. Errors of wrong posting in the debit and credit columns

11 / 50

K. Which ONE of the following best describes the stewardship function?

1. Managing cash.

2. Ensuring the recording, controlling and safeguarding of assets.

3. Ensuring high profits.

4. Ensuring high dividends to shareholders.

12 / 50

L. What is the depreciable amount of the machine?

1. 240000

2. 48000

3. 200000

4. 240000

13 / 50

M. On 1 January 2013 a motor vehicle, with the expected useful life span of 5 years and residual value of N100,000, was acquired for N1,600,000. Using sum-of-the-years digit method, what is the second year depreciation provision of the motor vehicle?

1. N400,000

2. N426,000

3. N530,000

4. N540,000

14 / 50

N. A trader had trade receivables of 50,000 at the end of his accounting period. Trade receivables at the beginning of the period was 60,000. His policy is to make allowance for doubtful debts at the rate of 5%. State the change in value of the allowance for doubtful debts at the end of the current accounting period.

1. 500 increase in allowance

2. 500 decrease in allowance

3. c. ¢2,500 decrease in allowance

4. 2,500 increase in allowance

15 / 50

O. The costs incurred in the normal course of business to generate revenue is called........................

16 / 50

P. In preparing financial statements, the bad debts account is closed by a transfer TO

1. Statement of financial position

2. Trading account

3. Provision for bad debt account

4. Statement of profit or loss

17 / 50

Q. The adjusted cash book balance is _______

1. N109,500

2. N209,500

3. N100,000

4. N155,500

18 / 50

R. 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. N50,000 Profit

3. N90,000 Loss

4. N10,000 Loss

19 / 50

S. 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

20 / 50

T. A piece of software that has become popular as an Accountant's tool is referred to as .......................

21 / 50

U. Use the following details to answer.Trade receivables control account balance 500,000.00 Allowance for doubtful debts 50,000.00 Allowance for discount allowed on receivables 5%.The receivables figure to be shown under current assets in the Statement of Financial position is __________

1. 427500

2. 447500

3. 425000

4. 450000

22 / 50

V. A sole proprietor paid his personal Income Tax by withdrawing cash for the payment from his business. The double entry posting in ledger with respect to the above transaction is: _________

1. DR Drawings A/C; CR Cash A/C

2. DR Personal Tax A/C; CR Bank A/C

3. DR Cash A/C; CR Drawing A/C

4. DR Taxation A/C; CR cash A/C

23 / 50

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

1. Dump

2. Tracing

3. Sorting

4. Debugging

24 / 50

X. On 1 May, A pays a rent bill of N1,800 for the twelve months to 30 April. What is the charge/credit to the income statement for the year ended 30 November?

1. N1185

2. N10115

3. N1000

4. N1050

25 / 50

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

26 / 50

Z. Accrued Salaries of N18,000 due to employees for December 31 2015 was omitted and not included in the financial statements prepared for the year ended 31 December 2015 Which of the following will be correct?

1. Net profit of the company would be over-stated byN18,000

2. Liabilities of the company would be over-stated by N18,000

3. Liabilities of the company would be under-stated by N18,000

4. Assets of the company would be over-stated by N18,000

27 / 50

AA. The accounts of credit suppliers are contained in the ........................ ledger

28 / 50

AB. Which one of the following sentences does NOT explain the distinction between financial accounts and management accounts?

1. Financial accounts are audited by management where as management accounts are audited by external auditors

2. Financial accounts are more accurate than management accounts

3. Financial accounts are primarily for external users and management accounts are primarily for internal users.

4. Financial accounts are normally produced annually and management accounts are normally produced monthly.

29 / 50

AC. A method of keeping accounts whereby revenue and expenses are recorded in the books of account when received and paid without regard to period to which they apply is called....................

30 / 50

AD. P is a sole proprietor whose accounting records are incomplete. All the sales are cash sales and during the year N50,000 was banked, including N5,000 from the sale of a business car.He paid N12,000 wages in cash from the till and withdrew N2,000 per month as drawings.The cash in the till at the beginning and end of the year was N300 and N400 respectively.What were the sales for the year?

1. N80900

2. N81100

3. N81000

4. N86100

31 / 50

AE. At the end of the first year of trading, a trader's receivables amounted to 5,000. This excludes 180 debts found to be irrecoverable. At the same date, it was estimated that 70 of the 5,000 would still turn out to be irrecoverable debts. Determine the net realizable value of receivables at the end of the first year of trading.

1. 4750

2. 4930

3. 5000

4. 4820

32 / 50

AF. Which of the following provides the origin of accounting information?

1. Accounting books

2. Cash book

3. Source documents

4. Ledger

33 / 50

AG. The relevant concept that justifies the charging to expense the cost of small waste basket even though the basket has useful life of several years is known as a ________

34 / 50

AH. The amount at which an asset is recognized after deducting any accumulated depreciation and accumulated impairment losses is called ________

35 / 50

AI. Which of the following should NOT be included in cost of inventory?

1. Administrative overhead

2. Purchase price

3. Normal amount of wasted material

4. Import duties

36 / 50

AJ. Non-current assets can best be defined as Items of machinery which are not moveable and are purchase with an intention of resale

1. A AND B

2. NONE OF THE ABOVE

3. STATEMENT NOT VALID

4. VALID STATEMENT

37 / 50

AK. 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. 500000

3. 420000

4. ¢480,000

38 / 50

AL. The financial statement that presents the assets, liabilities and equity interest of an entity at a point in time is called ________

39 / 50

AM. The fall in value of non-current intangible assets as a result of passage of time is referred to as _________

1. Amortization

2. Deterioration

3. Depletion

4. declining

40 / 50

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

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

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

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

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

41 / 50

AO. A vehicle was purchased on 1 January 2011 at a cost of N2,000,000 and was depreciated at 25% on cost. It was sold on 31 December 2013 for N1,400,000. Full-year depreciation 25% on cost. It was sold on 31 December 2013 for N1,400,000. Full-year depreciation was charged in the years of purchase and disposal. Determine the profit or loss on the disposal

1. N500,000 loss

2. N900,000 loss

3. N500,000 profit

4. N900,000 profit

42 / 50

AP. Which accounting concept does not agree with making allowance for discount receivable?

1. Business entity

2. Consistency

3. Accruals

4. Prudence

43 / 50

AQ. 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?

44 / 50

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

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

2. The non-current assets account will be understated

3. The inventory of the outfit will be understated

4. The profit of the outfit will be understated

45 / 50

AS. Goldspring Enterprises had a prepaid insurance of L$6,000 at the beginning of 2010. During the year, an insurance premium of L$32,000 was paid, while the prepaid insurance stood at L$4,000. What is the insurance expense for 2010?

46 / 50

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

47 / 50

AU. 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

48 / 50

AV. 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. N1015

2. N1100

3. N1185

4. N1300

49 / 50

AW. The excess of Gross Profit over operating expenses is ________

50 / 50

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

1. 48250

2. 40000

3. 40250

4. 48000

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