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 adjusted cash book balance is _______

1. N109,500

2. N209,500

3. N155,500

4. N100,000

2 / 50

B. 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?

3 / 50

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

4. Each code is a unique number.

4 / 50

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

1. Business entity

2. Consistency

3. Materiality

4. Prudence

5 / 50

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

1. A. Repairs to factory machinery.

2. B. Direct production wages.

3. D. Factory insurance.

4. C. Office salaries.

6 / 50

F. 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....................

7 / 50

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

8 / 50

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

1. Business entity

2. Consistency

3. Prudence

4. Accruals

9 / 50

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

1. Income is recognised when earned and cash is received

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

3. Income is recognized only when cash is received

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

10 / 50

J. 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%

11 / 50

K. What is the depreciable amount of the machine?

1. 48000

2. 200000

3. 240000

4. 240000

12 / 50

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

13 / 50

M. A piece of software that has become popular as an Accountant's tool is referred to as .......................

14 / 50

N. Which of the following would result from an increase in the allowance for doubtful debts?

1. A decrease in net profit An increase in net profit .

2. An increase in gross profit

3. An increase in asset

4. decrease in gross profit

15 / 50

O. 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. N81000

2. N80900

3. N86100

4. N81100

16 / 50

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

1. Department code.

2. All of the above.

3. Product code.

4. Nominal ledger code.

17 / 50

Q. 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. B. 20,000

2. A. 15,000

3. C. 25,000

4. D. 30,000

18 / 50

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

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

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

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

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

19 / 50

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

1. Source documents

2. Cash book

3. Accounting books

4. Ledger

20 / 50

T. 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 normally produced annually and management accounts are normally produced monthly.

3. Financial accounts are more accurate than management accounts

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

21 / 50

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

22 / 50

V. 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. STATEMENT NOT VALID

3. VALID STATEMENT

4. NONE OF THE ABOVE

23 / 50

W. Credit sales are recorded in a ______

24 / 50

X. 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 ________

25 / 50

Y. 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. N260

2. N315

3. N275

4. N185

26 / 50

Z. 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. A liability

3. An asset

4. A payable

27 / 50

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

1. Valid Statement

2. Statement not valid

3. all of the above

4. a and b

28 / 50

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

29 / 50

AC. The excess of Gross Profit over operating expenses is ________

30 / 50

AD. An item of property, plant and equipment costing N600,000 was bought on 1 January, 2011. Depreciation was provided at 20% annually on straight-line basis and computed up to the point of sale. It was sold on 30 June, 2014 for N157,500. In the year of sale, profit is _______

1. Reduced by N22,500

2. Reduced by N120,000

3. Increased by N157,500

4. Increased by N22,500

31 / 50

AE. 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 decrease in allowance

3. c. ¢2,500 decrease in allowance

4. 500 increase in allowance

32 / 50

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

33 / 50

AG. 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?

1. A. Loss 13,000

2. B. Profit 7,000

3. C. Profit 10,000

4. D. Profit 13,000

34 / 50

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

35 / 50

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

36 / 50

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

37 / 50

AK. The objective of financial statements is it enables users to assess the performance of management and to aid in decision making

1. STATEMENT NOT VALID

2. VALID STATEMENT

3. NONE OF THE ABOVE

4. A AND B

38 / 50

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

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

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

39 / 50

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

40 / 50

AN. The following are application packages EXCEPT.

1. Peachtree

2. Re-writable

3. Oracle

4. Bank master

41 / 50

AO. A cheque issued and which remains with the payee for more than six months becomes a _______ cheque

42 / 50

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

1. declining

2. Amortization

3. Deterioration

4. Depletion

43 / 50

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

44 / 50

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

45 / 50

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

46 / 50

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

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

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

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

47 / 50

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

1. Errors of omission.

2. Errors of transposition.

3. Errors of principle.

4. All of the above.

48 / 50

AV. The idea that an accounting entity will not be wound up in the foreseeable future is ________

49 / 50

AW. 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?

1. Assets of the company would be over-stated by N18,000

2. Net profit of the company would be over-stated byN18,000

3. Liabilities of the company would be over-stated by N18,000

4. Liabilities of the company would be under-stated by N18,000

50 / 50

AX. 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

Rate this quiz