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. 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. II and III

2. I and III

3. II and IV

4. I and II

2 / 50

B. 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. N10,000 Loss

2. N90,000 Loss

3. N90,000 Profit

4. N50,000 Profit

3 / 50

C. 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. 385

3. 435

4. 615

4 / 50

D. Which of these statements CANNOT be defined as income?

1. Gains arising on the disposal of non-current asset

2. Decrease in economic benefits during the accounting period

3. Increase in economic benefits during the accounting period

4. Decrease in liabilities

5 / 50

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

3. Each code is a unique number.

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

6 / 50

F. 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 Statement of Profit or Loss account

2. Debit irrecoverable debts recovered account/Credit personal account

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

4. Debit Income statement/Credit irrecoverable debts recovered account

7 / 50

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

1. Provision for bad debt account

2. Statement of financial position

3. Statement of profit or loss

4. Trading account

8 / 50

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

9 / 50

I. 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. 450000

2. 425000

3. 427500

4. 447500

10 / 50

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

11 / 50

K. Which of these books of account could be classified as a subsidiary book as well as a ledger

1. Sales day book

2. Cash book

3. Nominal ledger

4. General ledger

12 / 50

L. 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 ________

13 / 50

M. 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 more accurate than management accounts

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

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

14 / 50

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

1. 40250

2. 48250

3. 40000

4. 48000

15 / 50

O. 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. N1300

4. N1185

16 / 50

P. 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?

17 / 50

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

18 / 50

R. 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?

19 / 50

S. 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. N1050

3. N10115

4. N1000

20 / 50

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

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

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

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

21 / 50

U. 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. Reducing Balance Method

2. Straight Line Method

3. Revaluation Method

4. Sinking Fund Method

22 / 50

V. In what way should users be able to compare an entity's financial statement?

23 / 50

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

1. Statement of Profit or Loss

2. Sales day book

3. Trial balance

4. Control accounts

24 / 50

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

25 / 50

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

26 / 50

Z. 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

27 / 50

AA. The following are application packages EXCEPT.

1. Bank master

2. Re-writable

3. Oracle

4. Peachtree

28 / 50

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

29 / 50

AC. The following are optical Disks EXCEPT __________

1. WORMS

2. Floppy disk

3. CD-ROMs

4. DVD: Digital video Disk

30 / 50

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

31 / 50

AE. 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. D. 30,000

3. A. 15,000

4. B. 20,000

32 / 50

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

1. Cost of painting a building.

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

3. The replacement of windows in a building

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

33 / 50

AG. 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%

34 / 50

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

1. Errors of omission.

2. All of the above.

3. Errors of transposition.

4. Errors of principle.

35 / 50

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

36 / 50

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

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

2. Transposition of figures

3. Errors of principle

4. Error in computation of balances

37 / 50

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

38 / 50

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

1. The inventory of the outfit will be understated

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

3. The profit of the outfit will be understated

4. The non-current assets account will be understated

39 / 50

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

1. Appreciation

2. Obsolescence

3. Amortization

4. Deterioration

40 / 50

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.

1. 4930

2. 4820

3. 5000

4. 4750

41 / 50

AO. 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.

42 / 50

AP. 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. N81000

3. N81100

4. N86100

43 / 50

AQ. An error of commission occurs where the entries required for a transaction are partially omitted.

1. Valid Statement

2. all of the above

3. Statement not valid

4. a and b

44 / 50

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

45 / 50

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

46 / 50

AT. A statement to agree the difference between the Cash Book and the Bank Statement balance is called ________

47 / 50

AU. The process of transferring the debit and credit items recorded in each journal to the relevant accounts in the ledger is called ________

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. N27000

4. N19000

49 / 50

AW. 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. N1700

2. N20000

3. N16900

4. N16500

50 / 50

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

1. Dump

2. Tracing

3. Sorting

4. Debugging

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