1. Which Question Paper Type of Principles of Account is given to you?
A. Type D
B. Type I
C. Type B
D. Type U
2. Accounting information seeks to provide ___.
A. permanent records for all transactions
B. analysis of accounts to trade debtors
C. audited reports on the accounts of a company
D. data about the employees of a company
3. When the debit side total of an account, t means that the account has __.
A. been overdrawn
B. been understated
C. debit balance
D. credit balance
Use the information below to answer question 4 and 5
July 1 - Started business with ₦10,500
July 31- Paid Agromachinex ₦6,000 owing them
4. The double entry for July 1 would be __.
A. debit capital and credit cash
B. credit cash and debit bank
C. debit cash and credit capital
D. debit purchases and credit cash
5. The double entry for July 31 would be __.
A. debit Agromachinex and credit cash
B. debit equipment and credit Agromachinex
C. credit capital and debit cash
D. credit cash and debit purchase
6. The total credit sales for a period can be extracted from the __.
A. cash book
B. sales day book
C. petty cash book
D. returns inwards
7. The major source document which enables an employer to calculate the employee wages is the __.
A. nominal roll of employees
B. record of number of hours worked
C. effort of the employee
D. record of number of dependents per employee
8. Which of the following items is a capital expenditure?
A. Maintenance of office machine
B. Purchase of office stationery
C. Carriage inwards
D. Purchase of office machinery
9. The corresponding entry of personal accounts found in the debit side of the cash is to __.
A. credit real accounts
B. debit real accounts
C. credit the ledger
D. debit the ledger
10. Alaka who owed Saka ₦15,000, settled his debt after deducting cash discount of 10 %. To record the discount in the book of Saka, debit __.
A. discount received account and credit Alaka's account
B. Alaka's account and credit discount received account
C. Saka's account and credit discount received account
D. discount allowed account and credit Alaka's account
11. I. The amount of the imprest is the same from one organization to another.
II. At the end of a fixed period, the petty cashier received a fixed sum of money.
III. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
IV. The system is a method by which a measure of control is kept on petty cash expenses.
Which of the above is correct about the imprest system?
A. I, II and III
B. I, III and IV
C. II and IV
D. III and IV
Use the information below to answer question 12 and 13.
A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9,000.
12. The yearly depreciation using the straight line method would be __.
13. If the scrap value is presently ₦15,000 what will be the yearly depreciation using straight line method?
14. The purchase of mattresses from Freehold enterprises by cheque amounted to ₦305,150. The correct entries for this transaction in the book of the buyer is to debit __.
A. sales account and credit bank account
B. purchases and credit bank account
C. cash and credit freehold
D. bank and credit freehold
Use the information below to answer question 15 and 16.
15. Calculate the gross profit.
16. Calculate the expenses debited to the profit and loss account.
Calculate the closing capital.
18. What type of stock valuation would a vegetable seller adopt in valuing it's product?
C. Simple average
D. Weighted average
19. The total cash and cheques received from customers in a control account is derived from the __.
A. purchases day book
B. cash book
C. income and expenditure account
D. sales journal
Use the information below to answer question 20 and 21.
20. Find the opening capital.
21. Calculate the value of closing capital.
Opening capital ₦50,000
Closing capital ₦64,000
Determine the net profit
23. The estimated profit or loss for a period is calculated by ___.
A. closing capital less opening capital add drawings
B. opening capital less closing capital add drawings
C. opening capital less drawings add closing capital
D. opening capital add closing add drawings
The adjusted capital as at 31/1/2007 is __.
25. When goods produced are transferred at cost plus mark-up sale, the difference between the cost and the transferred price is a __.
B. sales commission
C. manufacturing profit
D. factory reserves
26. The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of__.
A. goods available for sale
B. goods sold
C. goods manufactured
D. materials put into production
Use the information below to answer question 27-28.
27. Calculate the cost of raw materials used.
28. Determine the prime cost.
29. In manufacturing account, the work-in-progress at the end of the year is __.
A. deducted from the cost of goods completed during this year
B. added to the cost of goods completed
C. stated in the profit and loss account
D. stated in the prime cost section
30. Which of the following is accounted for in receipts and payment account?
A. Subscriptions received in advance
B. Subscriptions due not yet received
C. Accrued expenses on annual dances
D. Depreciation of the club house
31. Which of the following expenses relates to the profit and loss account of a manufacturing firm __.
A. Direct materials
B. Direct labour
C. Administrative overhead
32. I. Direct materials
II. Direct labour
III. Direct expenses
IV. Factory expenses
Prime cost consists of __.
A. I, II and III
B. I, II and IV
C. I, III and IV
D. II, III and IV
33. The amount paid by a new partner on admission as a compensation for the reputation built up by old partners is a __.
34. A partnership's internal regulations are set out by __.
A. a deed
B. a law
C. a constitution
D. an article
35. In a partnership account, interest on drawings is __.
A. debited to appropriation account
B. credited to appropriation account
C. treated as an expense in profit and loss account
D. recorded in the balance sheet as current assets
36. When a share valued at 50k is issued at ₦1.59, it is said to be issued at __.
37. The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of
A. net income
B. revenue reserve
C. capital reserve
D. net loss
38. When shares are issued at a discount, entries are to debit __.
A. application allotment account and credit discount account
B. discount account and credit
C. cash account and credit discount account
D. discount account and credit bank account
39. When there is no basis of apportionment in an organization, the expenses should be apportioned based on __.
Use the information below to answer question 40 and 41.
Rate expenses of ₦1,500 are apportioned in the ratio 1:2.
40. The gross profit for K is __.
41. What is the net profit of Y?
42. The objective of departmental account is to __.
A. ascertain the cost of running the organization
B. ascertain the amount of profit or loss for each department
C. ascertain the amount of profits for losses for the enterprises
D. offset the loss of each treatment
43. Which of the following is the capital reserve of a company?
A. Share premium
B. Retained profit
C. Accumulated depreciation
D. Loss on forfeited shares
Applications were invited by the directors of Abiodun PLC for 500,000 ordinary shares of ₦1:00 each at ₦1:10 per share payable as follows;
On application 46k
On allotment 20k
1st Call 15k
2nd Call 19k
How much is to be paid for application?
45. The issued share capital is the number of shares that are __.
A. authorized by share holders
B. shared among the directors
C. fully subscribed
D. in the share certificate
46. The distributable profit available to shareholders at the end of each year is the __.
A. total profit and debtors balance
B. general reserve and retained profit
C. retained profit and fictitious assets
D. total profit less creditors balance
47. The debenture issued at par above the nominal value is said to be issued at a __.
A. cost price
48. Accountant-general of the federation is responsible for __.
A. the general supervision of all auditing personnel in all the ministries
B. the compilation of annual financial statement
C. the interpretation of rules and regulations affecting the private sectors
D. ensuring the efficient operation of the ministries
Assets and Liabilities of a Local Government
Calculate the liabilities of the local government.
50. An instrument which allows public officers to increase expenditure within a year is __ .
A. statutory allocation
B. supplementary budget