Your results on Financial Accounting 2011 are shown below

1. The two fundamental books of accounts are

• returns inwards and outwards.
• journal and ledger.
• discounts allowed and received.
• credit note and debits note.

2. Which of the following is a capital expenditure?

• Extension of building
• Repairs of generator
• Purchase of stock
• Purchase of stationery

3. Expenses accrued at the end of the accounting year is treated in the balance sheet as

• current assets.
• current liability.
• fixed assets.
• long-term liability.

4. Another name for owner’s equity is

• loan
• debtors
• capital
• overdraft

5. The reduction in value of goodwill is

• amortization.
• appreciation.
• depletion
• depreciation.

6 Use the following information to answer questions 6 to 8.

	GHO
1	Opening stock	4000
2	Purchases	12000
3	Carriage inwards	300
4	Returns outwards	322
5	Sales	20000
6	Closing stock	6000

The cost of goods sold is

• GH0 16,300.
• GH0 15,978.
• GH0 10,022.
• GH0 9,978.

7. The cost of goods available for sale is

• GH0 16,300.
• GH0 15.978.
• GH0 10,022.
• GH0 9,978.

8. The gross profit is

• GH0 12,300.
• GH0 11,978.
• GH0 10, 022.
• GH0 9,978.

9. Which of the following is not recorded in a Partnership Appropriation Account?

• Interest on capital
• Partners drawings
• Share of profit
• Interest on drawings

10. When a transaction is completely left out. from the books, it is an error of

• Commission
• omission.
• principle
• compensation.

11. Which of the following is not a subsidiary book?

• Sales Day Book
• Purchases Day Book
• General Journal
• Trial Balance.

12. In departmental accounts, rent is apportioned on the basis of

• purchases
• floor area occupied
• number of personnel in each department
• volume of sales

13. The document used in government accounting to show evidence of cash receipts and payments is the

• budget
• warrant
• vote
• voucher

14. Which of the following errors will affect the totals of a trial balance?

• Compensating error
• Complete reversal of entry
• Error in addition
• Error of original entry

15. Use the following information to answer questions 15 to 17. Okoro and Osula are in partnership sharing profits and losses in the ratio 3:2 respectively. Their respective capital were #40,000 and #15,000 and their drawings were #7,000 and #5,000. Interest on capital was 5% and interest on drawings was 10%. The net profit was #30,000. 15. Okoro’s share of the profit is

• #17,070.
• #16,070.
• #11,380.
• #10,000.

16. Osula’s interest on drawings is

• #2,000.
• #750.
• #700.
• #500.

17. The total interest on capital is

• #4,000.
• #2,750.
• #2,000.
• #750.

18. Which of the following is an example of a subsidiary book?

• Cash book
• Bank statement
• Control accounts
• Trial balance

19. Goods returned by the buyer is recorded in the seller’s books as

• carriage inwards
• carriage outwards
• returns outwards.
• returns inwards

20. The method of ascertaining capital from incomplete records is by preparing the

• cash book
• statement of affairs
• suspence account
• control account

21. A petty cashier operates with an imprest of D1,000 per week. At the end of the week he had disbursed D920. How much is needed to restore the imprest?

• D1,920
• D1,000
• D920
• D80

22. Accumulated fund is also referred to as

• surplus
• profit
• deficit
• capital

23. Subscriptions owed by members of a club is a/an

• asset
• liability
• profit
• surplus

24. Prime cost is derived by adding I. cost of raw materials consumed; II. indirect expenses; III. direct labour; IV. factory expenses; V. work-in-progress; VI. direct expenses.

• I, II and IV only
• I, 111 and VI only
• IV, V and VI only
• II, III and V only

25. The document from which entries are transferred to the purchases day book is the

• waybill
• credit note
• receipt
• invoice

26. A bookkeeper debited Motor Vehicle Account instead of Motor Expenses Account. This is an error of

• Commission
• original entry
• complete reversal of entry
• principle

27. John received a cheque from Dawda, a debtor, in payment for goods purchased by Dawda on credit. The transaction will be recorded in John’s

• cash book and sales-ledger
• nominal ledger and sales ledger
• cash book and purchases ledger.
• nominal ledger and purchases ledger.

28. Use the following information to answer questions 28 and 29.

1	Prime cost	6000
2	Factory overheads	6000
3	Stock on 1/1/09 work in progress	1000
4	Stock on 31/12/09 work in progress	2000
5	returns inwards	800
6	sales	20000

Cost of production is

• #10,000.
• #9,000.
• #8,000.
• #6,000.

29. Net sales for the period is

• N20,000.
• N20,800.
• N19,200.
• N10,000.

30. The total value received by a company as consideration for shares issued constitutes

• paid-up capital
• authorized capital
• working capital
• capital employed

31. The first calculating machine in data processing was

• Abacus
• Pascal
• Punched cards
• Digital

32. The going concern concept assumes that

• every transaction is represented by a debit and credit entry
• the currency must not change
• the firm is a legal entity.
• the business will continue.

33. Which of the following is not a purpose for which share premium may be utilized? A.

• Issuing fully paid bonus shares
• Writing off preliminary expenses
• Settling salesmen commission
• Providing for redeemable preference shares

34. A debenture is

• a loan capital raised by a company
• money given to a company as a gift
• accured expenses
• share capital

35. The concept which deals with the exclusion of trivial items in the accounting records is

• consistency
• going concern
• materiality
• money measurement

36. Which of the following is not an example of capital reserve?

• Share premium
• Retained profits
• Surplus on revaluation of assets
• Pre-incorporation profits

37. Goods sent to branch are recorded in the head office’s books at I. selling price. II. cost price plus markup percentage, ill cost price.

• I and II only
• I and III only
• II and ill only
• I, II and III

38. Computer memory sizes are measured in

• kilometres.
• kilowatts.
• kilobytes.
• centimetres.

39. Rent owed by a department is treated in the Balance Sheet as

• asset of the business.
• asset of the department.
• liability of the business.
• liability of the department.

40. When shares are issued to the public and the issuing company has not requested for payments, it is referred to as

• authorized capital.
• paid-up capital
• uncalled capital.
• unissued capital.

41. Use the following information to answer questions 41 and 42.

Ogogo’s sales ledger control account         D	D
Balance b/d                                             25180	Discounts allowed                                                         1936
Sales                                                         43220	Sales returns                                                                  1884
Dishonoured cheque                                542	Cash received from customers                                    Xxx
68942	Balance c/d                                                                  68942

Net sales is

• D41,878.
• D41,336.
• D41,284.
• D39,400.

42. The total cash received from customers is

• D68,942.
• D60,000.
• D43.220.
• D41,336

43. The diagrammatic representation of the workings of the computer program is

• flow chart
• desktop
• keyboard
• byte

44. The process of recording financial transactions of government is

• Management Accounting
• financial accounting.
• cost accounting.
• public sector accounting.

45. A bank statement shows a debit balance of Le 475. After the entry of an uncredited cheque of Le 800, the new balance is

• Le 325 overdraft.
• Le 325.
• Le 1,275.
• Le 1,275 overdraft.

46. The business entity concept

• separates the owner’s transactions from the business transactions
• records transactions outside the business
• does not separate the owner’s transactions from the business transactions.
• involves other business transactions

47. Which of the following is not used in Public Sector Accounting?

• Cash Book
• trial Balance
• Profit and Loss Account
• Bank Reconciliation Statement

48. The concept which states that assets are not to be recorded at their current market value is

• money measurement
• materiality
• cost
• entity

49. Provision for depreciation on delivery van is charged to

• trading account.
• profit and loss account.
• appropriation account.
• manufacturing account.

50. Which of the following date lines is correct for a profit and loss account?

• For the year ended 31st December 2009
• As at 31st December 2009
• For the period 31st December 2009
• As at the year 2009

ANSWERS

1. B
2. A
3. B
4. C
5. A
6. D
7. B
8. C
9. B
10. B
11. D
12. B
13. D
14. C
15. A
16. D
17. B
18. A
19. C
20. B
21. C
22. D
23. A
24. B
25. D
26. D
27. C
28. B
29. C
30. A
31. A
32. D
33. C
34. C
35. C
36. D
37. A
38. C
39. C
40. C
41. B
42. B
43. A
44. D
45. A
46. A
47. C
48. C
49. B
50. A