Your results on Financial Accounting 2009
1. Which of the following books of original entry is used to record all payments and receipts by cash or cheque?
- Sales day book
- Cash book
- Purchases day book
- General journal
2. As a basis for assessing future usage, fixed assets are shown at
- selling price
- cost price
- cost plus residual value
- net book value
3. In the absence of an agreement, partners share profits
- based on activeness of a partner.
- based on capital contribution .
- on partronage basis.
- on equal basis
4. Subscriptions prepaid by members is recorded in the Balance Sheet fo a club as a
- current asset
- current asset
- fixed asset
- long term liability
5. The reduction in value of an intangible asset is
- depletion
- depreciation
- amortization
- appreciation
6. Which of the following is not part of cost of production.
- wages of operators
- factory power
- Advertising
- Cost of raw materitals.
7. Rent is apportioned to each department on the basis of
- area or space occupied
- equality
- turnover
- purchases
8. A document which acknowledges that a company owes a person a stated sum of money withan agreement to pay a fixed rate of interest periodically is
- share certificate
- allotment certificate
- preference certificate
- debenture certificate
9. Use the following information to answer questions 9 to 11.
D
Purchase of raw materials 236,500
Returns of raw materials 4,750
Carriage on raw materials 34,000
Stock of raw materials at close 39,500
Factory fuel 150,000
direct wages 205,000
Indirect wages 31,250
Factory power 105,000
Work-in-progress at start 32,500
What is the value of raw materials used?
- D270,500
- D285,250
- D255,000
- D236,250
10. What is the prime cost?
- D 717,500
- D 231,250
- D 286,250
- D 270,500
11. The total factory overhead is
- D 318,750
- D 286,250
- D 255,000
- D 236,250
12. Financial statements do not disclose all information users need to know about a firm.This is the concept of
- consistency
- money measurement
- dual aspect
- materiality
13. Which of the following is not a source of revenue for local government?
- Mining royalties
- Radio and TV licences
- Tenement/property rates
- Business permit fee.
14. A difference between the debit and credit totals in a Trial Balance is placed in
- bank reconciliation statement
- profit and loss account
- suspence account
- appropriation account
15. A three column Cash Book contains columns for
- Cash, Assets and Liabilities
- Bank, Cash and Assets.
- Cash, Bank and Returns
- Discount, Cash and Bank.
16. A three column Cash Book contains columns for
- Cash, Assets and Liabilities
- Bank, Cash and Assets.
- Cash, Bank and Returns
- Discount, Cash and Bank.
17. The total debtors account of a trading concern is N13,000. Out of this 2% is irrecoverable, 5% of the balance is not likely to be collected. What is the provision for doubtful debts?
- N910
- N650
- N637
- N260
18. Which of the following is not part of factory overhead?
- Factory salaries
- Factory lighting and heating
- Depreciation of plant and machinery
- Depreciation of fixtures and fittings.
19. Cost of extension to a factory building is classified as
- capital receipt
- revenue expenditure
- capital expenditure
- revenue receipt
20. Which of the following does not appear in a bank statement?
- dividend received
- bank charges
- uncredited cheques
- dishonoured cheques
21. The purchase of a typewrite for office use for 02,000 is debited to
- creditors
- bank account
- purchases account
- equipment account.
22. The document making a public offer for the sale of a company’s share is
- Memorandum of Association.
- Articles of Association
- Prospectus
- Certificate of Registration.
23. Programs installed in computers to facilitate processing of data are
- hardwares
- software
- magnetic tapes
- diskettes
24. In a not for profit making organization, the excess of income over expenditure is
- added to capital
- added to accumulated fund.
- deducted from capital.
- deducted from accumulated fund.
25. Use the following information to answer questions 24 to 26. The authorized capital of City Entertainment Company is made up of 200,000 22% preference shares of Le 60 each and 300,000 ordinary shares of Le 20.80% of the ordinary shares have been issued at Le 30 each and fully paid. All the preference shares have been issued at par and fully paid. The directors decided to pay the preference dividend and recommended ordinary dividend of Le 0.10 per share. What is the amount of preference dividend payable for the year?
- Le 600,000
- Le 500,000
- Le 300.000
- Le 5,000.
26. What is the amount of the share premium?
- Le 9,000,000
- Le 500,000
- Le 3,000,000
- Le 2,400,000.
27. The value of the ordinary share capital to be stated in the balance sheet is
- Le 9,000,000
- Le 7,200,000
- Le 4,800,000
- Le 4,000,000.
28. The petty cash book has
- a debit balance only
- a credit balance only
- a nil balance only.
- both debit and credit balances.
29. Credit sales was debited to A. Akpan instead of B. Akpan. This is an error of
- principle
- original entry
- omission
- commission
30. Use the following information to answer questions 29 and 30.
A motor car costing D100,000 was depreciated at 20% per annum by the diminishing balance method.
Two years later, it was sold for D60,000.
The net profit or loss on the sale was
- D 40,000 profit
- D 4,000 profit
- D 4,000 loss
- D 40,000 loss.
31. The net book value at the time of sales is
- D 64,000
- D 60,000
- D 40,000
- D36,000.
32. A service which a firm has enjoyed, but which has not yet been paid for is
- accured expense
- preliminary expense
- prepaid expense
- overhead expense
33. Which of the following is not part of the double entry system?
- trading account
- profit and loss account
- appropriation account
- balance sheet
34. In the balance sheet, the balance on the Provision for Depreciation Account is shown as
- addition to fixed assets
- dedeuction from fixed asset
- addition to capital.
- deduction from current liabilities.
35. S. Sule sets aside from his private funds N20,000 for business purposes. The N20,000 is referred to as
- drawings
- capital
- loan
- profit
36. An article costs N1,800 and is sold at a gross profit of 20% on selling price. What is the sellingprice?
- N2,250
- N2,160
- N1.800
- N1.440.
37. Which of the following are Personal Accounts? I Wages II Debtors III Creditors IV Buildings
- I, II and III only
- II and III only
- II and IV only
- Ill and IV only.
38. Prepayment is treated in the balance sheet of a firm as a
- fixed asset
- long-term liability
- current asset
- current liability.
39. Which of the following is found in a Sales Ledger Account?
- Credit purchases
- Bill payable
- Discount received
- Discount allowed.
40. The authority of the Accountant-General to disburse from government fund is
- provision
- warrant
- vote
- estimate
41. Use the following information to answer question 40.
Bank Statement Dr Dr Balance
$ $ $
2/1/06 Balance b/d 2,000
3/1/06 ‘23456’ 500 1,500
4/1/06 Deposit 1,000 2,500
5/1/06 Deposit ‘23457’ 1,500 4,000
6/1/06 3,000 1,000
40. Total withdrawal is
- $3,500.
- $2,500
- $2,000.
- $1,000.
42. The depreciation on plant acquired by a manufacturing company is treated as
- prime cost
- administrative expenses
- factory overhead
- selling and distribution expenses
43. As evidence of payment to a government treasury, revenue collectors issue
- treasury card.
- receipt voucher card
- treasury receipt.
- payment voucher.
44. Hardware in data processing refers to
- programs run on the computer
- entry and storage of information on computer
- microsoft disc operating system
- mechanical components of the computer.
45. Which of the following is a self-balancing account?
- Trading Account
- Appropriation Account
- Assets Account
- Control Account
46. A medium of imputing data into the computer is through the use of the
- keyboard
- monitor
- software
- hardware
47. Which of the following is debited to partner’s current account?
- Capital
- Interest on capital
- Drawings
- Share of profit.
48. Use this information to answer questions 47 and 48. Abu, a debtor to Dania, owed 010,500 at the start of the month. He paid cash of 040,005 during the month and received additional credit sales of 020,000. Abu’s balance at the end of the month is
- 030,505 cr.
- 09,505 cr
- 09,505 dr.
- 030,500 dr.
49. In Dania’s books, to record the payment of 030,505 cr.40,005 by Abu
- debit Cash Account, credit Abuâ€s Account
- debit Abuâ€s Accont credit Cash Account
- debit Cash Account, credit Sales Account
- debit Sales Account, credit cash Account
50. A debenture holder is a
- creditor
- promotor
- debtor
- shareholder
ANSWER
- B
- B
- D
- A
- C
- C
- A
- D
- D
- B
- B
- B
- A
- C
- D
- D
- C
- D
- C
- C
- D
- C
- B
- B
- D
- D
- C
- D
- D
- C
- A
- A
- D
- B
- B
- B
- B
- C
- D
- B
- A
- C
- C
- D
- D
- A
- C
- B
- A
- A