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 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. N27000

4. N19000

2 / 50

B. An amount spent in acquiring or adding value to a fixed asset/non-current asset is ________

3 / 50

C. 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. VALID STATEMENT

3. NONE OF THE ABOVE

4. STATEMENT NOT VALID

4 / 50

D. A car was purchased for N12,000 on 1 April in year 1 and has been depreciated at 20% each year straight line, assuming no residual value. The company policy is to charge a full year�??s depreciation in the year of purchase and no depreciation in the year of sale. The car was traded in for a replacement vehicle on 1 August in year 4 for an agreed figure of N5,000. What was the profit or loss on the disposal of the vehicle in year 4?

1. N203

2. N200

3. N250

4. N205

5 / 50

E. 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. C. 25,000

2. A. 15,000

3. B. 20,000

4. D. 30,000

6 / 50

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

7 / 50

G. 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. 447500

2. 425000

3. 427500

4. 450000

8 / 50

H. Extended Trial Balance is an alternative way of arriving at the figures to be included in the __________

9 / 50

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

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

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

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

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

10 / 50

J. 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. 515

2. 435

3. 385

4. 615

11 / 50

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

12 / 50

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

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

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

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

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

13 / 50

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

14 / 50

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

1. Accruals

2. Prudence

3. Consistency

4. Business entity

15 / 50

O. 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. A. 1,650

2. D. 1,900

3. C. 1,850

4. B. 1,700

16 / 50

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

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. D. 33,750

2. B. 25,312

3. C. 29,531

4. A. Nil

18 / 50

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

1. 40250

2. 40000

3. 48250

4. 48000

19 / 50

S. A present obligation of an entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying is expected to result in an outflow from the entity of resources embodying economic benefits, is known as _______

1. A provision

2. An asset

3. A liability

4. A payable

20 / 50

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

21 / 50

U. The accounting equation at the start of the month was:Assets N14,000 less liabilities N6,500.During the following month, the business purchased a non-current asset for N6,000, paying by cheque, a profit of N9,000 was made, and payables of N7,500 were paid by cheque. What would the balance on capital be at the end of month?

1. N16500

2. N1700

3. N16900

4. N20000

22 / 50

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

1. Transfer of debit balances to receivables ledger

2. Set-off contra

3. Total credit purchases

4. Transfer of credit balances from receivables ledger

23 / 50

W. The data storage hierarchy is as follows:

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

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

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

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

24 / 50

X. Which of the following errors will cause the trial balance totals to be unequal?

1. Errors of transposition.

2. Errors of omission.

3. Errors of principle.

4. All of the above.

25 / 50

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

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

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

3. Financial accounts are more accurate than management accounts

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

26 / 50

Z. 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.

27 / 50

AA. On 1 June year 1, H paid an insurance invoice of N2,400 for the year to 31 May year 2. What is the charge to the income statement and the entry in the financial statement for the year ended 31 December year 1?

1. C. N1,400 income statement and prepayment of N1,000.

2. D. N2,400 income statement and no entry in the statement of financial position.

3. B. N1,400 income statement and accrual of N1,000.

4. A. N1,000 income statement and prepayment of N1,400.

28 / 50

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

1. Source documents

2. Accounting books

3. Cash book

4. Ledger

29 / 50

AC. What is the gross profit on sales worth GHÂ¢240,000, if gross profit is 331/3% on cost of goods sold?

30 / 50

AD. 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 Income statement/Credit irrecoverable debts recovered account

2. Debit irrecoverable debts recovered account/Credit personal 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

31 / 50

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

32 / 50

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

1. Amortization

2. Deterioration

3. Appreciation

4. Obsolescence

33 / 50

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

34 / 50

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

1. Debugging

2. Dump

3. Sorting

4. Tracing

35 / 50

AI. Which of the following accounting records is used to determine the arithmetical accuracy of ledger posting?

1. Control accounts

2. Trial balance

3. Sales day book

4. Statement of Profit or Loss

36 / 50

AJ. Which of the following is NOT an accounting concept?

1. Historical cost

2. Accrual

3. Information

4. Consistency

37 / 50

AK. The error made where the original figure is incorrect, yet double entry is still observed using the same figure is _________

38 / 50

AL. 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?

39 / 50

AM. Credit sales are recorded in a ______

40 / 50

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

41 / 50

AO. 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

42 / 50

AP. 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. 500 increase in allowance

3. c. ¢2,500 decrease in allowance

4. 500 decrease in allowance

43 / 50

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

44 / 50

AR. 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. VALID STATEMENT

3. STATEMENT NOT VALID

4. NONE OF THE ABOVE

45 / 50

AS. 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. Easy to change the code number.

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

3. Each code is a unique number.

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

46 / 50

AT. 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. 4930

2. 4820

3. 5000

4. 4750

47 / 50

AU. 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. Sinking Fund Method

2. Revaluation Method

3. Reducing Balance Method

4. Straight Line Method

48 / 50

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

1. Nominal ledger code.

2. All of the above.

3. Department code.

4. Product code.

49 / 50

AW. 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

50 / 50

AX. 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. Bank charges

3. Uncredited cheques

4. Unpresented cheques

Rate this quiz