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A. Which accounting concept does not agree with making allowance for discount receivable?
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B. 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:
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C. Which of the following is NOT correct in differentiating between sole trader and limited liability companies?
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D. The data storage hierarchy is as follows:
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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?
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F. 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
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G. Which one of the following should be accounted for as capital expenditure?
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H. 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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I. 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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J. Which of these books of account could be classified as a subsidiary book as well as a ledger
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K. 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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L. 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 __________
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M. The source document that is used to write up the Sales Day Book is a _________
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N. What is an imprest system?
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O. 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
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P. 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 _______
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Q. 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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R. 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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S. What is the depreciable amount of the machine?
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T. 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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U. 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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V. When there is inflation, the historical cost convention has the effect of _________
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W. 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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X. Which one of the following sentences does NOT explain the distinction between financial accounts and management accounts?
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Y. When recognizing income under the accrual basis, which of the following statements is correct
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Z. Which ONE of the following expenses should be included in prime cost in a manufacturing account?
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AA. A cheque issued and which remains with the payee for more than six months becomes a _______ cheque
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AB. Which of the following errors will cause the trial balance totals to be unequal?
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AC. 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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AD. Non-current assets can best be defined as Items of machinery which are not moveable and are purchase with an intention of resale
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AE. Which of the following provides the origin of accounting information?
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AF. The accounts of credit suppliers are contained in the ........................ ledger
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AG. Which of these statements CANNOT be defined as income?
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AH. 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: _________
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AI. The amount at which an asset is recognized after deducting any accumulated depreciation and accumulated impairment losses is called ________
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AJ. 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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AK. The excess of current assets over current liabilities is known as ________
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AL. The balance as per bank statement is ______
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AM. 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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AN. Using straight line method, what would be the annual depreciation charge for the second year of usage?
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AO. Using straight line method, what would be the annual depreciation charge for the second year of usage?
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AP. Which of the following errors does NOT affect the balancing of a trial balance?
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AQ. The accounting measure used to match tax effect of transactions with their accounting impact is termed.......................
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AR. The difference between an income statement and an income and expenditure account is that __________
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AS. What is the gross profit on sales worth GHÂ¢240,000, if gross profit is 331/3% on cost of goods sold?
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AT. The excess of current assets over current liabilities is ........................
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AU. A statement to agree the difference between the Cash Book and the Bank Statement balance is called ________
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AV. The error made where the original figure is incorrect, yet double entry is still observed using the same figure is _________
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AW. Which of the following would NOT be posted to the credit of payables control account
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AX. 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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AY. 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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AZ. 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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BA. The document that is filled/completed to support cash lodgement in a bank is called ________
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BB. The effect of the error on the financial statements, if not detected, would include the following except
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BC. 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
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BD. 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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BE. ............... a chronological record of the transactions of a business entity
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BF. Items that are normal to activity of an enterprise and abnormal as a result of their infrequency of occurrence and size are known as..........................
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BG. Extended Trial Balance is an alternative way of arriving at the figures to be included in the __________
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BH. The source of data for recording the Returns Inward Book of a business entity is ________
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BI. 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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BJ. 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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BK. The profit of a business may be calculated by using which one of the following formulae?
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BL. The difference between the monetary value of output and input of goods and services attributed to a business is called..........................
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BM. 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?
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BN. In what way should users be able to compare an entity's financial statement?
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BO. 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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BP. 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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BQ. A Motor Van costs N100,000, Furniture N5,000, Creditors N25,000,. What is the capital account balance?
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BR. 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?
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