30 Account questions for Examination

1.  Accrual concept stipulates that

A. revenue should be recognized when it is earned

B. cost should be recognized when the expenditure is paid

C. revenue should be recognized only when the cash is paid

D. costs should be recognized when they are incurred.

2. The basic role of accounting is to

A. detest fraud   B. attest to financial statement

C. Measure performance   D. protect shareholders

3. The need for changes in accounting theory in Nigeria was influenced by the

A. dynamics of commercialization and privatization policies

B. growth in size of business units

C. introduction of the structural adjustment programme

D. inconvertibility of the nation’s currency

4. A bookkeeping error occurs when there is

A. a deliberate manipulation of records

B. unintentional correct posting in the ledger

C. intentional failure to record transactions completely

D. incorrect records and oversights that are not intended.

5. When a proprietor withdraws cash from the business for private uses, he

A. debits cash account and credits drawings account

B. credits cash account and debit cash account

C. credits cash account and debits drawings account.

D. credits cash account and debits drawings account

6. A basic unifying concept in accounting implies that                                

A. where creditors’ account is zero, the assets equal to the owners’ equity 

B. there should be balance in creditors’ account in order to ensure total assets.                          

 C. revenues should be supported by investors and owners’ capital D. total assets can be less than liabilities and equity.

7. A source document for sales day book is.                                                                                            

A. a requisition form.                                

B. an invoice

C. a custom advice                             

D. a credit advice.

8. In a cash book, the opening balance was N 7600 closing balance N9200 and the total cash received during the period was N18000. What was the amount of cash paid out during period? 

A. N8900 B. 9800  C. 1460  D. 16400

9. If the total discount allowed in a cash book was N230 and the total discount was N255, which of the following is true concerning the two discounts?                                                              

A. They must be balanced the cash book and the difference taken to the debtors ledger.                    B. They must be balanced in the cash book and the difference taken to the trial balance.                C. They should not be balanced in the cash be before being taken to the trial balance.                    D. They should not appear in the trial balance as they will already either received or paid out.

10. Which of the following bank reconciliation items should not be added or subtracted from   the bank statement balance to determine the adjusted cash balance?                                                 A. Outstanding cheques  B. Bank service charges  lC. Deposits in the mail not yet received by the bank.  D. Bank error, charging a company for another company’s cheque.

11. The fixed amount of money given to a petty cashier at the beginning of a period is called?                                                

A. Imprest  B. Petty cash    C. Float D. Cash advance    

12. A provision for bad debt account had N20000 and the vehicle is to be depreciated at 5%.

Using the reducing balance method of depreciation, what would be the value of the assets after 3 years.                                                    

A. N19,000.00 B. N18,050.50  C. N17,147.50 D. N16, 290.13

Use the information below to answer question 13 and 14.

Capiatl: opening balance 307,000

closing balance                                   342,000

Net profit for the period 121,600

Opening stock 98,800

Purchases                 706,000

Carriage inwards 17,500

Cost of goods sold                       740,000

Total selling, general and 

admin. Expenses 526,000

Discount received                             9,650

1. A   16. D

2. B    17. C

3. B    18. B

4. B    19. D

5. C    20. D

6. A   21. B

7. B   22. B

8. D   23. B

9. D   24. B

10. D  25. D

11. C   26. D

12. N.A 27. D

13. B    28. C

14. C     29. A

15. A     30. A