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

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. N590 overdrawn.

2. N790 overdrawn.

3. N540 overdrawn.

4. N840 overdrawn

3 / 50

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

1. Import duties

2. Administrative overhead

3. Normal amount of wasted material

4. Purchase price

4 / 50

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

5 / 50

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

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

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

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

6 / 50

F. 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

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. D. 30,000

2. B. 20,000

3. A. 15,000

4. C. 25,000

8 / 50

H. 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 IV

2. I and III

3. II and III

4. I and II

9 / 50

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

1. Tracing

2. Dump

3. Sorting

4. Debugging

10 / 50

J. 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. N1100

2. N1300

3. N1185

4. N1015

11 / 50

K. 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. N81100

2. N86100

3. N80900

4. N81000

12 / 50

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

1. Information

2. Consistency

3. Historical cost

4. Accrual

13 / 50

M. The source of data for the recording of sales day book of a business enterprise is ________

1. Invoice

2. Returns outward note

3. Official receipt

4. Returns inward note

14 / 50

N. 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 ________

15 / 50

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

1. Deterioration

2. declining

3. Amortization

4. Depletion

16 / 50

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

17 / 50

Q. 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 Cash A/C; CR Drawing A/C

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

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

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

18 / 50

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

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

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

19 / 50

S. 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?

1. N275

2. N260

3. N315

4. N185

20 / 50

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

1. Ensuring high dividends to shareholders.

2. Managing cash.

3. Ensuring high profits.

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

21 / 50

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

22 / 50

V. 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 Statement of Profit or Loss/Credit Cash/Bank account

2. Debit irrecoverable debts recovered account/Credit personal account

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

4. Debit Income statement/Credit irrecoverable debts recovered account

23 / 50

W. 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 wrong posting in the debit and credit columns

3. Errors of principle

4. Transposition of figures

24 / 50

X. 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. N200

2. N205

3. N203

4. N250

25 / 50

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

26 / 50

Z. 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. ¢480,000

2. 360000

3. 500000

4. 420000

27 / 50

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

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

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

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

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

28 / 50

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

1. 48250

2. 40250

3. 40000

4. 48000

29 / 50

AC. 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. N10,000 Loss

4. N90,000 Loss

30 / 50

AD. ............... a chronological record of the transactions of a business entity

31 / 50

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

32 / 50

AF. 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. N900,000 profit

3. N500,000 loss

4. N500,000 profit

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. 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....................

35 / 50

AI. Which of the following is NOT correct in differentiating between sole trader and limited liability companies?

1. Drawings would only appear in the financial statements of a sole trader

2. A sole trader's financial statements are private and never made available to any other equity holder

3. A sole trader is fully and personally liable for any losses that the business might make

4. Only companies have share capital

36 / 50

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

1. Department code.

2. Nominal ledger code.

3. All of the above.

4. Product code.

37 / 50

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

1. Appreciation

2. Deterioration

3. Obsolescence

4. Amortization

38 / 50

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

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

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

3. Cost of painting a building.

4. The replacement of windows in a building

39 / 50

AM. Which of the following errors does NOT affect the balancing of a trial balance?

1. Transposition error

2. Error of principle

3. Duplication of entries

4. Casting error

40 / 50

AN. The following are optical Disks EXCEPT __________

1. WORMS

2. DVD: Digital video Disk

3. Floppy disk

4. CD-ROMs

41 / 50

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

1. Prudence

2. Accruals

3. Business entity

4. Consistency

42 / 50

AP. 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. Uncredited cheques

3. Dividend received by bank on behalf of customer.

4. Bank charges

43 / 50

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

1. Statement not valid

2. a and b

3. all of the above

4. Valid Statement

44 / 50

AR. 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. N16900

2. N20000

3. N1700

4. N16500

45 / 50

AS. The fact that allowances are made against doubtful debts upholds the concept of __________

1. Business entity

2. Materiality

3. Consistency

4. Prudence

46 / 50

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

1. 48000

2. 48250

3. 40000

4. 40250

47 / 50

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

1. Trial balance

2. Sales day book

3. Statement of Profit or Loss

4. Control accounts

48 / 50

AV. 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. c. ¢2,500 decrease in allowance

2. 500 increase in allowance

3. 500 decrease in allowance

4. 2,500 increase in allowance

49 / 50

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

50 / 50

AX. 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?

1. 450000

2. 350000

3. 500000

4. 550000

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