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 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 ________

2 / 50

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

3 / 50

C. 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 asset, decrease in capital and decrease in liability

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

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

4 / 50

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

1. 40000

2. 48250

3. 40250

4. 48000

5 / 50

E. 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 Personal Tax A/C; CR Bank A/C

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

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

6 / 50

F. 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

7 / 50

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

1. Managing cash.

2. Ensuring high profits.

3. Ensuring high dividends to shareholders.

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

8 / 50

H. Credit sales are recorded in a ______

9 / 50

I. 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. Bank charges

2. Uncredited cheques

3. Unpresented cheques

4. Dividend received by bank on behalf of customer.

10 / 50

J. An amount spent in acquiring or adding value to a fixed asset/non-current asset is ________

11 / 50

K. What is an imprest system?

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

2. Is part of computerized accounting

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

4. Helps to control petty cash.

12 / 50

L. 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 statement is prepared for a manuf acturing business and an income and expenditure account is prepared for a non manufacturing business

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

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

13 / 50

M. 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 payable

3. An asset

4. A liability

14 / 50

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

15 / 50

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

16 / 50

P. One of the following is a disadvantage of Application Packages.

1. They provide standard approach to common applications.

2. They save programming efforts

3. They make implementation of an application to be quicker and cheaper.

4. There may be inclusion of features that are not particularly relevant in the packages

17 / 50

Q. The following are application packages EXCEPT.

1. Bank master

2. Oracle

3. Peachtree

4. Re-writable

18 / 50

R. 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. 5000

2. 4750

3. 4820

4. 4930

19 / 50

S. 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. 435

2. 515

3. 615

4. 385

20 / 50

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

21 / 50

U. 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.

22 / 50

V. The data storage hierarchy is as follows:

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

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

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

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

23 / 50

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

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

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

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

24 / 50

X. 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. 2,500 increase in allowance

3. 500 increase in allowance

4. 500 decrease in allowance

25 / 50

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

26 / 50

Z. 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. N20000

2. N1700

3. N16500

4. N16900

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

29 / 50

AC. 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 Income statement/Credit irrecoverable debts recovered account

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

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

4. Debit irrecoverable debts recovered account/Credit personal account

30 / 50

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

31 / 50

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

1. Accrual

2. Consistency

3. Information

4. Historical cost

32 / 50

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

1. Trading account

2. Provision for bad debt account

3. Statement of profit or loss

4. Statement of financial position

33 / 50

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

1. Returns inward note

2. Returns outward note

3. Invoice

4. Official receipt

34 / 50

AH. 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. N790 overdrawn.

2. N540 overdrawn.

3. N590 overdrawn.

4. N840 overdrawn

35 / 50

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

36 / 50

AJ. The adjusted cash book balance is _______

1. N100,000

2. N109,500

3. N209,500

4. N155,500

37 / 50

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

38 / 50

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

39 / 50

AM. 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. Increased by N22,500

2. Reduced by N120,000

3. Reduced by N22,500

4. Increased by N157,500

40 / 50

AN. 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. N12000

2. N25000

3. N19000

4. N27000

41 / 50

AO. The accounts of credit suppliers are contained in the ........................ ledger

42 / 50

AP. 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. I and II

4. II and IV

43 / 50

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

44 / 50

AR. Which one of the following sentences does NOT explain the distinction between financial accounts and management accounts?

1. Financial accounts are more accurate than management accounts

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

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

4. Financial accounts are primarily for external users and management accounts are primarily for internal users.

45 / 50

AS. The following are optical Disks EXCEPT __________

1. WORMS

2. CD-ROMs

3. Floppy disk

4. DVD: Digital video Disk

46 / 50

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

1. Statement not valid

2. a and b

3. Valid Statement

4. all of the above

47 / 50

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

1. Product code.

2. Department code.

3. All of the above.

4. Nominal ledger code.

48 / 50

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

49 / 50

AW. The balance as per bank statement is ______

1. N39,500

2. N41,500

3. N179,500

4. N139,500

50 / 50

AX. 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. A. 15,000

2. B. 20,000

3. C. 25,000

4. D. 30,000

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