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A. Which of the following should NOT be included in cost of inventory?
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B. 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?
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C. 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?
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D. The error made where the original figure is incorrect, yet double entry is still observed using the same figure is _________
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E. 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?
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F. 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
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G. The difference between an income statement and an income and expenditure account is that __________
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H. Which of the following would NOT be posted to the credit of payables control account
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I. The objective of financial statements is it enables users to assess the performance of management and to aid in decision making
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J. 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 ________
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K. Which of the following provides the origin of accounting information?
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L. ............... a chronological record of the transactions of a business entity
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M. 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?
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N. The excess of current assets over current liabilities is ........................
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O. 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?
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P. 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?
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Q. What is an imprest system?
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R. The process of transferring the debit and credit items recorded in each journal to the relevant accounts in the ledger is called ________
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S. The core objective of accounting is ________
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T. 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?
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U. Records of transactions used as the basis for recording accounting entries, such as invoices, cheque stubs and similar business papers are called ________
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V. The source of data for recording the Returns Inward Book of a business entity is ________
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W. Which of the following errors does NOT affect the balancing of a trial balance?
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X. 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.
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Y. A customer owing 200,000 was allowed to pay 180,000 in full settlement of his indebtedness. This results in a _____
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Z. Which ONE of the following best describes the stewardship function?
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AA. 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?
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AB. The following are optical Disks EXCEPT __________
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AC. One of the following is a disadvantage of Application Packages.
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AD. 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?
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AE. Which ONE of the following expenses should be included in prime cost in a manufacturing account?
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AF. 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?
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AG. The costs incurred in the normal course of business to generate revenue is called........................
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AH. An error of commission occurs where the entries required for a transaction are partially omitted.
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AI. 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?
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AJ. A cheque issued and which remains with the payee for more than six months becomes a _______ cheque
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AK. Which of the following is NOT correct in differentiating between sole trader and limited liability companies?
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AL. Using straight line method, what would be the annual depreciation charge for the second year of usage?
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AM. The cash book of a trader shows an overdrawn account. Which of the following will reduce the balance when the necessary recordings are completed?
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AN. 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.
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AO. The document that is filled/completed to support cash lodgement in a bank is called ________
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AP. The effect of the error on the financial statements, if not detected, would include the following except
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AQ. 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?
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AR. 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?
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AS. 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 _____
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AT. In what way should users be able to compare an entity's financial statement?
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AU. 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
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AV. Which one of the following should be accounted for as capital expenditure?
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AW. In preparing financial statements, the bad debts account is closed by a transfer TO
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AX. Which of these statements CANNOT be defined as income?
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AY. The difference between the monetary value of output and input of goods and services attributed to a business is called..........................
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AZ. The data storage hierarchy is as follows:
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BA. 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?
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BB. 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 _______
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BC. The amount of wages paid to an employee after making appropriate deductions is referred to as ________
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BD. 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?
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BE. The following are application packages EXCEPT.
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BF. What is the depreciable amount of the machine?
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BG. 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
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BH. Credit sales are recorded in a ______
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BI. Which of the following is NOT an accounting concept?
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BJ. State the journal entry to record a motor vehicle of N4,500,000 purchased on credit from SCOA motors.
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BK. The source of data for the recording of sales day book of a business enterprise is ________
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BL. The excess of Gross Profit over operating expenses is ________
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BM. Electricity bill of N10,000 incurred during the year was not charged as an expense for that year. The error committed is ....................
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BN. Which of these books of account could be classified as a subsidiary book as well as a ledger
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BO. A statement to agree the difference between the Cash Book and the Bank Statement balance is called ________
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BP. When recognizing income under the accrual basis, which of the following statements is correct
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BQ. Which of the following would result from an increase in the allowance for doubtful debts?
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BR. Which of the following are used in a coding system for accounting transactions?
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