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

1. 48250

2. 40000

3. 48000

4. 40250

2 / 50

B. 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. N840 overdrawn

3. N540 overdrawn.

4. N590 overdrawn.

3 / 50

C. The source document that is used to write up the Sales Day Book is a _________

4 / 50

D. A company includes in inventory goods received before the year end, but for which invoices are not received until after the year end. This is in accordance with ______

1. The historical cost convention.

2. The consistency concept

3. The accruals concept.

4. The materiality concept

5 / 50

E. One of the following is a disadvantage of Application Packages.

1. There may be inclusion of features that are not particularly relevant in the packages

2. They make implementation of an application to be quicker and cheaper.

3. They save programming efforts

4. They provide standard approach to common applications.

6 / 50

F. The adjusted cash book balance is _______

1. N109,500

2. N155,500

3. N100,000

4. N209,500

7 / 50

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

8 / 50

H. A piece of software that has become popular as an Accountant's tool is referred to as .......................

9 / 50

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

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

10 / 50

J. The idea that an accounting entity will not be wound up in the foreseeable future is ________

11 / 50

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

12 / 50

L. Salaries paid in the month was N26,152. Outstanding balance at the end of the month was N848. The salaries include an amount of N3,600 paid to the owner. What is the amount to be charged against the Profit and Loss Account for the month?

13 / 50

M. The accounting measure used to match tax effect of transactions with their accounting impact is termed.......................

14 / 50

N. 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. N900,000 loss

2. N500,000 loss

3. N500,000 profit

4. N900,000 profit

15 / 50

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

1. The replacement of windows in a building

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

3. Cost of painting a building.

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

16 / 50

P. The data storage hierarchy is as follows:

1. Bits, Field, Bytes, Files, Records, Database

2. Database, Files, Records, Fields, Bytes, Bits

3. Bits, Bytes, Field, Records, Files, Database

4. Bytes, Records, Bits, Files, Bits, Database

17 / 50

Q. Which of the following reconciliation items will affect the cash book balance?(I)Bank error overstating the bank balance(II)Cash book error, overstating the bank balance (III)Income received through the bank (IV) Imprest cheques

1. I and II

2. II and III

3. II and IV

4. I and III

18 / 50

R. When a debt thought to be irrecoverable and written off is subsequently recovered, which additional entry is required to complete the two entries given below? I. Debit Personal Account/Credit Irrecoverable Debts Recovered Account II. Debit Cash/Bank Account/Credit Personal Account

1. Debit irrecoverable debts recovered account/Credit personal account

2. Debit Income statement/Credit irrecoverable debts recovered account

3. Debit Statement of Profit or Loss/Credit Cash/Bank account

4. Debit irrecoverable debts recovered account/Credit Statement of Profit or Loss account

19 / 50

S. 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 for a manuf acturing business and an income and expenditure account is prepared for a non manufacturing business

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

20 / 50

T. The Depreciation methods that ensure that the depreciation charged against income reduces as the year of usage of the non- current assets increases is known as ________

1. Straight Line Method

2. Sinking Fund Method

3. Revaluation Method

4. Reducing Balance Method

21 / 50

U. Which of the following are used in a coding system for accounting transactions?

1. Product code.

2. All of the above.

3. Department code.

4. Nominal ledger code.

22 / 50

V. The following are optical Disks EXCEPT __________

1. Floppy disk

2. DVD: Digital video Disk

3. WORMS

4. CD-ROMs

23 / 50

W. The objective of financial statements is it enables users to assess the performance of management and to aid in decision making

1. A AND B

2. STATEMENT NOT VALID

3. NONE OF THE ABOVE

4. VALID STATEMENT

24 / 50

X. Babu Enterprises exported GHÂ¢1,500,000 goods to a customer in Togo. What is the VAT amount to be added to the invoice value of the goods, if the VAT rate is 5%

25 / 50

Y. 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 ________

26 / 50

Z. 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. N540,000

2. N426,000

3. N530,000

4. N400,000

27 / 50

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

28 / 50

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

29 / 50

AC. 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. B. 25,312

2. A. Nil

3. C. 29,531

4. D. 33,750

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. N86100

2. N81000

3. N80900

4. N81100

31 / 50

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

1. Debugging

2. Dump

3. Tracing

4. Sorting

32 / 50

AF. From the following information, calculate the cash paid by trade receivables during the year. Receivables at the beginning of the year 350,000; Receivables at close of the year 500,000; Credit sales for the year 510,000

1. 520000

2. 380000

3. 360000

4. 340000

33 / 50

AG. 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 Taxation A/C; CR cash A/C

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

34 / 50

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

35 / 50

AI. 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. 2,500 increase in allowance

2. c. ¢2,500 decrease in allowance

3. 500 decrease in allowance

4. 500 increase in allowance

36 / 50

AJ. 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. Errors of principle

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

4. Transposition of figures

37 / 50

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

1. Ledger

2. Cash book

3. Accounting books

4. Source documents

38 / 50

AL. Records of transactions used as the basis for recording accounting entries, such as invoices, cheque stubs and similar business papers are called ________

39 / 50

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

40 / 50

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

1. Ensuring high profits.

2. Ensuring high dividends to shareholders.

3. Managing cash.

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

41 / 50

AO. 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. N1050

2. N1185

3. N10115

4. N1000

42 / 50

AP. 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. N7,800,000

2. N1,350,000

3. N5,150,000

4. N4,700,000

43 / 50

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

44 / 50

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

1. 48250

2. 48000

3. 40250

4. 40000

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. 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. D. 30,000

3. B. 20,000

4. C. 25,000

47 / 50

AU. 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 liability, increase in asset and increase in capital

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

48 / 50

AV. The entries in a sales ledger control account are:Sales 250,000; Bank 225,000; Sales returns 2,500; Bad debts (irrecoverable debts?) 3,000; Bad debts (irrecoverable debts?) 3,000;Returned unpaid cheque 3,500; Contra with purchase ledger account 4,000;What is the balance on the sales ledger control account

1. N25000

2. N12000

3. N19000

4. N27000

49 / 50

AW. The core objective of accounting is ________

1. Maintain records of assets and liabilities

2. Provide financial information to the users of such information

3. To fulfill statutory requirements

4. Keep record or transactions

50 / 50

AX. Which account is to be credited with the cash received in respect of trade receivables?

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