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

2 / 50

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

3 / 50

C. The core objective of accounting is ________

1. Provide financial information to the users of such information

2. Maintain records of assets and liabilities

3. Keep record or transactions

4. To fulfill statutory requirements

4 / 50

D. The balance as per bank statement is ______

1. N39,500

2. N139,500

3. N179,500

4. N41,500

5 / 50

E. The Agreement of a trial balance will not disclose ONE of the following fundamental errors in the accounting books.

1. Errors of principle

2. Transposition of figures

3. Errors of wrong posting in the debit and credit columns

4. Error in computation of balances

6 / 50

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

7 / 50

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

1. Business entity

2. Consistency

3. Prudence

4. Accruals

8 / 50

H. 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. N1050

2. N1000

3. N1185

4. N10115

9 / 50

I. The adjusted cash book balance is _______

1. N109,500

2. N100,000

3. N155,500

4. N209,500

10 / 50

J. 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. 500000

2. 550000

3. 350000

4. 450000

11 / 50

K. 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. N315

2. N275

3. N185

4. N260

12 / 50

L. What is the depreciable amount of the machine?

1. 200000

2. 240000

3. 240000

4. 48000

13 / 50

M. 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. Depletion

4. Amortization

14 / 50

N. The effect of the error on the financial statements, if not detected, would include the following except

1. The non-current assets account will be understated

2. The purchases in the financial statements will be overstated.

3. The inventory of the outfit will be understated

4. The profit of the outfit will be understated

15 / 50

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

16 / 50

P. 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. N10,000 Loss

3. N90,000 Loss

4. N50,000 Profit

17 / 50

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

18 / 50

R. When there is inflation, the historical cost convention has the effect of _________

1. Understating cash flow and overstating cash in the statement of financial position.

2. Understating profits and overstating statement of financial position values.

3. Overstating cash flow and understating cash in the statement of financial position

4. Overstating profits and understating statement of financial position values.

19 / 50

S. 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 ________

20 / 50

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. 615

2. 515

3. 435

4. 385

21 / 50

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

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

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

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

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

22 / 50

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

23 / 50

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

24 / 50

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

3. Debit irrecoverable debts recovered account/Credit personal account

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

25 / 50

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

26 / 50

Z. 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?

27 / 50

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

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

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

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

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

28 / 50

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

29 / 50

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

1. Decrease in liabilities

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

3. Increase in economic benefits during the accounting period

4. Decrease in economic benefits during the accounting period

30 / 50

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

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

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

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

31 / 50

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

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

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 profit

2. N500,000 profit

3. N500,000 loss

4. N900,000 loss

33 / 50

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

1. Ensuring high dividends to shareholders.

2. Ensuring high profits.

3. Managing cash.

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

34 / 50

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

1. Statement of Profit or Loss

2. Control accounts

3. Sales day book

4. Trial balance

35 / 50

AI. 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. Each code is a unique number.

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

36 / 50

AJ. 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 N157,500

2. Reduced by N120,000

3. Reduced by N22,500

4. Increased by N22,500

37 / 50

AK. 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%

38 / 50

AL. 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. N80900

2. N81100

3. N81000

4. N86100

39 / 50

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

40 / 50

AN. 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

41 / 50

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

42 / 50

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

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

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

3. The replacement of windows in a building

4. Cost of painting a building.

43 / 50

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

44 / 50

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

45 / 50

AS. 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. An asset

3. A liability

4. A payable

46 / 50

AT. 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. 4820

2. 4750

3. 5000

4. 4930

47 / 50

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

48 / 50

AV. 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. Dividend received by bank on behalf of customer.

2. Unpresented cheques

3. Bank charges

4. Uncredited cheques

49 / 50

AW. A company's net profit for the year ended 30 June, 2014 was N6,500,000. It was found that N1,800,000 paid for maintenance of motor vehicles had been debited to motor vehicle account and depreciated at 25% on cost (full year charge) in line with the company's policy. What would be the net profit after adjusting for the error?

1. N5,150,000

2. N4,700,000

3. N1,350,000

4. N7,800,000

50 / 50

AX. 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. N840 overdrawn

3. N540 overdrawn.

4. N790 overdrawn.

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