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 data storage hierarchy is as follows:

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

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

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

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

2 / 50

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

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

3 / 50

C. 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

4 / 50

D. Electricity bill of N10,000 incurred during the year was not charged as an expense for that year. The error committed is ....................

5 / 50

E. The adjusted cash book balance is _______

1. N100,000

2. N155,500

3. N209,500

4. N109,500

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

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G. Which ONE of the following expenses should be included in prime cost in a manufacturing account?

1. B. Direct production wages.

2. D. Factory insurance.

3. A. Repairs to factory machinery.

4. C. Office salaries.

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

1. Statement not valid

2. Valid Statement

3. all of the above

4. a and b

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I. The excess of current assets over current liabilities is known as ________

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

1. Dump

2. Sorting

3. Tracing

4. Debugging

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K. 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. C. 1,850

2. B. 1,700

3. A. 1,650

4. D. 1,900

12 / 50

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

1. Administrative overhead

2. Purchase price

3. Import duties

4. Normal amount of wasted material

13 / 50

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

14 / 50

N. When recognizing income under the accrual basis, which of the following statements is correct

1. Income is recognized only when it is not certain that cash will be received

2. Income is recognized only when cash is received

3. Income is recognised when earned and cash is received

4. Income is recognized when earned and not necessarily when cash is received

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

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P. 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. 427500

3. 425000

4. 447500

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Q. 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. N1000

2. N1050

3. N1185

4. N10115

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

1. Trading account

2. Statement of profit or loss

3. Statement of financial position

4. Provision for bad debt account

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

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T. 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. 385

2. 435

3. 615

4. 515

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U. 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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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 irrecoverable debts recovered account/Credit personal account

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

3. Debit Income statement/Credit irrecoverable debts recovered account

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

23 / 50

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

24 / 50

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

25 / 50

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

3. Only companies have share capital

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

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

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

1. Sales day book

2. Nominal ledger

3. General ledger

4. Cash book

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

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

2. Decrease in liabilities

3. Decrease in economic benefits during the accounting period

4. Increase in economic benefits during the accounting period

29 / 50

AC. 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. N185

2. N315

3. N260

4. N275

30 / 50

AD. 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. Reducing Balance Method

4. Revaluation Method

31 / 50

AE. The core objective of accounting is ________

1. To fulfill statutory requirements

2. Keep record or transactions

3. Maintain records of assets and liabilities

4. Provide financial information to the users of such information

32 / 50

AF. 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....................

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AG. Non-current assets can best be defined as Items of machinery which are not moveable and are purchase with an intention of resale

1. VALID STATEMENT

2. A AND B

3. STATEMENT NOT VALID

4. NONE OF THE ABOVE

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

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AI. What is an imprest system?

1. Helps to reconcile the cash book with the bank statement.

2. Is part of computerized accounting

3. Helps to control petty cash.

4. Records the use of a company's seal.

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

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

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AL. The source of data for recording the Returns Inward Book of a business entity is ________

1. Debit note

2. Credit note

3. Payment voucher

4. Invoice

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AM. 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.

40 / 50

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

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AO. An increase in inventories of N500 and a decrease in the bank balance of N600 and an increase in payables of N1,400 results in:

1. C. A decrease in working capital of N1,300

2. A. A decrease in working capital of N1,500

3. D. An increase in working capital of N1,300

4. B. An increase in working capital of N1,500

42 / 50

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

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AQ. 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

44 / 50

AR. The excess of current assets over current liabilities is ........................

45 / 50

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

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

2. Ensuring high dividends to shareholders.

3. Ensuring high profits.

4. Managing cash.

46 / 50

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

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

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

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

1. Returns outward note

2. Official receipt

3. Returns inward note

4. Invoice

48 / 50

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

1. 40250

2. 40000

3. 48000

4. 48250

49 / 50

AW. 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. Each code is a unique number.

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

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

4. Easy to change the code number.

50 / 50

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

1. Consistency

2. Business entity

3. Accruals

4. Prudence

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