12, Which of the following is NOT an account Prudence Consistency A Accruals Realisation The concept which requites that an income should not be recog! fully written off is referred t Materiality concept Pruden Business entity concept Acerval concept Matching concept concept 14. The consistency concept stipulates thy g methods used anytime, if their methods will Managers of business entities are free to change account can choose any aceaunting concept to treat similar iter Managers of business ent Both cash and accrual basis of accounting should be adopted ¢ ‘Once a method has been chosen to treat and record an item in the ace other periods rements should disclose the items thet are it should be maintained ificant in the books Financial st ves rise to the following EXCEPT 15. The acerual concept g Prepayments Trade payal Cash expenses Trade Receivables Expenses owed 16. The provision for bad ancl doubtful debts is an example of the application ofthe concept Consistency Prudence Accruals Materiality Realisation jon of the entity concept to sole trader? 17. Which of the following is the implic Business can sue and be sued separately Liability of the owner is limited The owner cannot own privan Private use of business assets redu Owner can issue shares to the public sels owner's capital Page 3 of 20J for more than one accounting peri ed to be used erie anne less of their insignifical waskets are expect period of use reps 18, Sigplers,perorators and waste bi ‘and should be measured over the applicable concept to the above 1s Historical cost Objectivity/Fairness Materiality Substance over form : im business from the propriet 1A t and costs of the 9, An account income and costs is known as 4; concept which separates the ineome Entity concept Pradence concept Money measurement concept Periodicity concept Going concern concept 20. When cash taken from the tll is banked, the transaction is recorded as a Bank entry Till entry Cash entry Debit entry Contra entry 21. Shola bought goods on credit from Gbade. The goods had a price list o Shola trade discount of 10% and cash discount of 4%, how much is Shola amount on the invoice’ 00, but Gbade allowed expected to be the net 4.300 4,320 4.500 4.700 N5,000 22. The right ofa seller to merge a customer's accounts, ONE: in credit and the ‘net balance for that particular customer is a right of Balance-off Set-off Final settlement other in debit, to arrive at Contra entry Sell-off 23. The main objective of cash discount is to Eiicourage tnide receivaties Encourage trade patronage Increase imecoverable debs Fncolurage prompt cash payments Encourage bulk purchases age 4 of 20————— 44, Mensnt Linierptlven sctd gous worth CHAGHSA, O00 tor Tanah witout to a trade oh ‘ou aloo af 10%, Caleuare ty et waten va GEO, 800 GHWONO,280 anes, suo GHETOS,000 CHEROT, S00 oils Worth CHIGNS0,000 10 Tnlily subjout to a trade disco [ved hy Menaul Bnterpri 28, Menwaly Himerprives sold cash discount of 10%, Cialoulate the amount te GHE 88,000 GUE 127,800 GHEHSO.280 GHET22,500 GHET6S,000 26, Discount allowed to a customer for bulk purchase is known a Cash discount Discount allowed Discount received Rebate Quantity discount 27, Which of the following is NOT u reason for depreciating non-current asset Wear and tear Obsolescence Appresiation Passage of Time Depletion riate tothe type ie EXCEPT 28. The method of depreciation selected should be the ONE most use in the business. The princi Straight line method Different cost method Reducing balance method Output of usage method Annuity or rising charges method 29. The following are non-current assets, EXCEPT Land Goodwill Building Receivable ‘Machinery Page $ of 2030, Which of the following is NOT a revenue expenditure? Cost incurred in acquiring trading inventories for sale Discount allowed on Credit sales Cost of Repairing Plant and Equipment Staff Salaries and emoluments nt ayset Purchase of new equipment for use as 31. The sunimation of all depreciation already charged on a non-current asset is Provision ayeregate Amortization charge ‘Accumulated depreciation Accumulated cost Book value 32. Which of the following items is revenue expenditure? Procurement of furniture Cash purchase of tractor Credit purchase of a tractor Procurement of stationery Purchase of property 33, Which of the following is NOT an example of capital expenditure Purchase of non-current assets Extension or any improvement of a permanent nature made to any structure Public relations cost Legal fees of acquiring land or buildings: ‘The cost incurred in bring any non-current assets to its present location 34. Cost of Plant and machinery Le 1,200,000; Depreciation rate 12.5% per annuum, The depreciation charged for the third year using reducing balance method is, Le150,000 Le131,250 Let 14,844 Le105,000 Lel04,844 35. Cost of Plant and machinery Le!,200,000; Depreciation rate 12.5% per annum, What is the net book value at the end of the second y Le 1,050,000 Le 918,750 Le 903,500 Le 803,906 Le 650,000 Page 6 of 20a 36, Which of the following non-current assets does NOT need Warehouse Lund Furniture Fittings Computer 37, The cost of the gate to a premises should be treated a Capital project Capital receipt Revenue receipt Revenue expenditure Capital expenditure ns have a maximum duration of 38, Revenue it Six months ths Eighteen months ‘Twelve me Twenty months 39, Which of the following is an example of capital expenditure Stationery penses Travelling expenses Prelin ary expenses, Plant refurbishment Vehicle maintenance 40, Which of the following is NOT a non-current asset Lang Buildings Inventory Motor vehicles 41, Whieh of the following is NOY a cause of depreciation of monscurrent assets Deflation Physical deterioration Depletion Efuxion of time Obsolescence 42; While oF the following can i reyurded ws revenwe exyrnltin Cost OF nonocurronit ansets acai Formation expenses of a ew bustneyy Payment for registration with yovernmom Apenidlture incurred on repairs uf wonseurront wenvte ‘Coat fnaurred tn svaretioune expansion Page DotanCheque stu Pay in slip Cheque book Credit note 50. Which of the following is re Bank Stateme Cash book DR Ca unt CR Trade receivables accoun civables account CR Ca: R Trade receivab 7 DR Trade receivables account CR Irrecoverable debts account atation of adjusted ca: 3, The follow hat are used for recording in the books of EPT Purchase orders Sales invoice Credit note Debit notes Payment voucher $4, Which of the following is both a book of original entry and a ledger? Journal Cash discount Trade discount Cash book Sales day booksods retuned or over payment a customer in respect of pplier 55. A Document s the customer is called ? Debit Note Remittance Advice Goods Returned Note Goods Overpayment Note Credit note 56, Which of the following is NOT a use of Journals? Making adjustment entries Posting of opening balances Correcting errors Posting of unusual items and t Posting the cash hook entries actions 37. Which ofthe following documents is checked against a waybill io ensure that goods ordered were the ones supplied? Good Received Note Purchase Invoice Purchase Order Store Issue Voucher Gate Pass $8. In which of the following is « transaction first recorded: Ledgers Logbook Records Journal Account $9. Which of the following is TRUE of the General Joumal? A. It has a brief explanation or narration of the transaction B. Ithas only Debit column C. It uses only Credit column D It does not have debit and credit column E-Itis used to record only sales and purchases transactions his farm at a cost of GH¢2,000,000 and debited the amount to Farm 60, Flamingo bought a tractor for h ited an ertor of Appliances Expenses Account and credited the bunk account, f lamingo had con Omission Original entry Principle Commission Reversal of entry Page 10 of 20Ses uit Fi Mee oF payment io reins gh the bank and withdrawal Inve entry In whieh yon need to reoord the fallow ing transaction # An Invoice tor Has Sen to Altvall WAZOBIA (a cuitomer) ‘OF the Sales Day Book recorded in the nominal ledger? jer Creal Receivables Control Accountpsidiary books are recorded 67, Transaetions that are NOT entered into other subsidiary t Special journal Memorandum journal ournal proper Multi-purpose journal Extra ordinary joumal ure for Le20,000. He also purchased 40,000 to rent an office and bought flu 68. Patrick spen Fovon cash same pods fortes at ie cost of Lo30,000 and ook ashore trm lan af L230 Cooperative Thrift and Savings Society \ # What is Patrick’s total asset? Le140,000 £110,000 1Le70,000 260,000 6 seunting entries to record the use ofa business cash for owner's personal benefits are Dr. Cash account Cr, Capital account f Dr. Cash aecoun Ci: Inventory account Dr. Drawings aecount Cr, Cash account Dr. Cash account Cr. Drawings nt Cr. Drawings account 70, document that informs the buyer that his indebtedness has been reduced by the amount stated therein is a Debit nove Purchase invoice Sales invoice Credit statement 1, Which of the following isan example of revenue expenditure? Buying a van Buying machinery Painting outside of new building Petrol costs for van Purchase of office equipment 72: Which of the following books serves as a ledger? Sales Day Book Cash Book Journal Retumts Inwards Book Retums Outwards Book Page 12 of 20cel fret of customers! pebit oF customers’ account Debit oF suppliers’ account Pebit of Inventory account 74, The total amount in the Sales Day 1 ed into the sate J into the personal accounts of cust Credited into the personal accounts of customer Used asa contra entry in purcha 78, Accounting principles are divided int Financial Accounting and Managemen Auditing snd management Ac Accounting Concepts and Co Accounting GAAP and Assumption 76, Which of the following is not an Duial Aspect Concept True and Fair Concept Certain assumptions Quality of the productsot recorded to the accounts due to: on-finaneial quantitative information is not recorded to t 80, Dual Concept Acertial concept Money measurement concept Entity concept a, 81. Which of the following is not related to money measurement concept All busines transactions shouldbe expressed in money ’ The transaction which eannot be expressed in money, will not be recorded in the books Business is not treated as a separate from the proprietor All of the above 82, Cash refers to three items namely; counting ertible inventories ‘cash-in-hand, cash at bank and easily € ash tobe collected, cash from debtors and cash at bank cash-in-hand, stol ent hand cash equiva cash invested, stollen cash a id cash equivalent 85. There are four main conventions in practice ity, Objectivity and Consistency Materiality, Full disclosure and Consistency Materality, Full disclosure and Going convene Conservatism, Maeriality, duality and Consistency 84. Which of the follow Realization concept iness entity concept Shareholders? wealth concept Balance sheet Equation concept 1 i5 not an accounting concept? 85. Cash flow statement is used primarily he agTian the total amount of raw cash avaiable at a Raaieulae point in time by determining the difference berwann inflows and outflows: Not so true True False sometimes Hb. The process of identifying, measuring, analyzing Presenting and communicat the nell economic information to permit informed judgemens and decis the information was the definition of financia| ae unting given by {ntermational Accounting Standards Board (IAS) n making by users of Association of Accountants of American Imemational Accounting Association American Accounting Association 87. Which ofthe folowing is an example of money measurement concept? convention of consistency convention of materiality Convention of full disclosure convention of conservatism Page 14 of 20Ppoccounting, all busine Cost concept Dual aspect concept Going concern concep Matehiny ® Accounting equar Business entity ¢ wept Neept Money measurement concent Going concern concept Matching concept 0. Which of the f Going concern Mllowing is a fundamental accountin Consisteney Materiality Matching con According to wh pt ich assumption assets Money measurement Going concern concept Matching concept a Business entity concept YD, Fined assets ate recorded at cost less de Going concern concept Matching concept Revaluation consept reclation and not net realizable value bx Business entity ¢ cept 93, Which of the following Is the correct aecountin uation? Axgels = Liabilities ~ Capital Liabititles = Capital + Assets Capital = Assets + Liabilities Liabilities = Assets « Capital 94, The concept of conservatisin lakes into account All future profits and all future losses Ail future profits but leaves al) future losses All future tosses but leaves all future profits AIL of the above 95. Revenue Is considered us being earned on the date at which itis realized due to: Menaurement concept Realization concept Money concept Realized revenue ¢ ny records and data on finaricial statements must be based on objective nltied eviderice dic t Objective evid neept Going concern concept Realization concept Fingiial records concept 97 Hcl entity must choose a Going vonvern concept Wusliw entity cone Aceoinnting year € Spooittelly concent neept Page 15 of 20shows acing ano eo 54. Acechcting niles, pritclp racy Convention uintng prastive framework Object and ying concer concept 100, Revenue is considered to be earned whe Sale is efTected Before cash is received aA When a sale transaction is about to commence , Il have the effect o 101. The concept of conservatism will have th Overstatement of assets Understatement of assets Overstatement of revenue Understatement of revenue m concept Ownership concept Which of the followin balanced: is NOT a reason why cash books and ledg is left in the bank eecount * how much the business owe other people Find out what the business is owed Ascertain how much is stolen from the busivess sablish how much was received from or spent oh vatious business activities 4 The accounting entries to record goods drawn fro business by its owner for his persona ‘consumption ar ital account Cr Inventory a Dr Cost of sales Cr Inventory account Dr Drawing account Cr Inventory account Dr Drawing account Ct Capital account Dr Sales Account Cr Drawings account 105 Which of the followin Sale of goods on ered Cash paid to trade payables Purchases of goods on credit Cash purchases Cash received fiom trade receivables Page 16 of 20106, The last stag © in the book keeping process ig Extraction of the trial batan Posting into the ledgers Raising the transaction documents Balancing the ledger Casting to detect errors 107. A-company’s til balance failed to aurve, The totals Debit GH¢e407,801 Credit GHe404,210, Which of the following errors could a count for the difference No entries made in the records for ash sales totalling Gl1¢3,591 Discount allowed of € 1€1,795.50 debited in err The returns outwards totals of GH¢1,795.50 was included in the trial balance as a debit h ‘The omission from the trial balance of the debit balance n the insurance expense None recording of sundry income of GH¢3,591.00 in the los. The effect of items that are recorded on the debit side ofa bank state the credit side of the cash book is that Bank balance is overstated Bank balance is unders ed It results in an overdraft nk balance It has no effect on Cash balance is understated 109, Taylor bought a non-current asset on credit from Mopai Company Limited subsidiary ledger will Mopai Company Limited record this transaction? Purchase Journal Sales Journal Cash Book Journal Proper Non- current assets register 110. ‘A motor vehicle worth N750,000 was bought on credit from Eleganza and Sons Limited J Sons Limited reflect the transacti car dealer. How would Elegar Non-current Assets Trade receivables Trade payables Cash-in-transit Goods on sale or return Page 17 of 20mh IE sales account has been wrongly debited with the sales amount of N30.0¢ Amount fo be used to reverse the above wrong entry? N90,000 debit 90,000 eredit N60,000 debit 60,000 credit N15,000 debit 112, An error within the same class of account affecting different persons is Error of omission Error of principle Error of commission Compensating error Complete reversal error 113 A debit balance of GHC10,000 ina cash account shows that There was GHC10,000 cash on hand Cash has been over spent by GHC10,000 GHE10,000 was the total of cash paid out ‘The total of cash received was GH(10,000 ‘The cash account has been overcast by GHC10,000 114, Which of these errors would be disclosed by the Tria! Balance? n the cash book but credited to Mr Samson's ‘Cheque of N9,800 from Mr Sa mson, correctly posted account as N8,900 Selling expenses debited to the sales account and credited to the bank account Credit sales of N30,000 debited to Suppliers account and credited to sales account as N30,000 A purchase of N40,000 was omitted entirely from the books A cash sales of N52,000 was debited to the ‘customer and credited to cash account 8 pe ich of the following aecounts must be cleared in the Trial Balance before final can be prepared? Carriage inward Cash discounts received Bad debt provision ‘Suspense account Float balance 116. ‘Which of the following errors will NOT affect the agreement of the tr ial balance? versa was made A debit entry has been made but no corresponding credit entry or vi Debit and credit entries have been made on the same side A debit entry and its corresponding eredit entry had been correctly posted Opening balance has not been brought down Debit and cred entries have been made but at different values Pave 18 of 20NS EEE 117, Gani Nharuma Ventures asthe flowing rans Pe Discount allowed on Saks to customers amount to GMD20,000 (i) D hy fiom Supplies fs GMD30,000. The accountng treatment oft 8 DR Income statement CR Discount received account DR Discount received account CR Income siatement DR Cash book CR Discount received account DR Discount received acount CR Cash book DR Cash book CR Income statement Moki! NKtruma Ventures has the following transaction Discount allowed on Sales to customers amount to GMD20,000. i) froin Supplies is GMD30,000.25. The ascounting testmeg i DR Cash book CR Discount allowed account : DR Discount allowed account CR Cash book = DR Income statement CR Disco int allowed account A DR Discount allowed account CR Income statement DR Cash book CR Income statement 19, Which of the follow isNOT a debit entry in T Dishonoured bills and cheques from customers Cash paid to customers from the cash book Debit notes issued Discount allowed as recorded in the Cash book 120, ___Temitope Enterprises provision or allowance for depreciation counting N50,000, Which of the following is the correct double entry for this tr DR. Depreciation expense account CR, Allowance for depreciation DR. Allowance for depreciation CR, Depreciation expense account DR. Non-current asset CR. Depreciation expenst DR. Depreciation expense account CR.Statement of profit or loss account 121 ONE of the main uses of Trial Balance is to? Post items from sales day hook into the sales ledger (Check postings from purchases day book into the purchases ledger | accounts Facilitate preparation of the Correct errors of postings Standardise accounting records The processes involved in book-keeping are as follows, EXCEPT Classification of business transactions using source documents Recording of transactions in appropy Extraction of the Trial Balance Extracting future cash flow Posting of entries from subsidiary books to the ledger Page 19 of 20Fer of oriole ‘ Which ofthe following is NOT an example of areal account Neetu inward ledger 126 Jnvdividuat aecount in the Purchase Day Book are posted to Credit of supp ee iat Debit of Suppl Debit of Inventory account A susp Source of error is unknowit Tie amovine involved is quite significant {ine ervors do not feet the tral balance mn amount fnvitved 18 not material entry ts committed for N800,000 cash, The amount was debited souitt, What is the type of error committed 12 goods bought & motor V 128. Ai tity sel ted into cash ae into puuclvases account and cred Liew oF comin Hamve af complete reversal Hewor of principle Connpensating etter Draprasitlion roe