PAPER TYPE: D
1. Which Questions Paper Type of Principles of Accounts is given to you?
B. Type A.
C. Type B.
D. Type C.
E. Type D.
2. The historical development of accounting reveals that it ___.
A. deals with debit and credit terms
B. is a product of financial development
C. is a product of its own environment
D. is an ideal subject for financial development
3. In a trial balance, income and liabilities are__
A. debited and credited respectively
C. Credited and debited respectively
4. The principle of double entry ensures__.
A. mathematical accuracy in trial balance
B. Balance at the bank
C. increases in the assets and liabilities
D. balance of cash account.
5. I. Deduct the smaller side figure from the bigger side figure
II. Add up both sides
III. Take the difference to the smaller side and add to the smaller figure
The correct procedure for balancing account is __.
A. II, I and III
B. I, III and II
C. II, III and I
D. I, II and III
6. Given: ₦
7. The major feature of a journal is that it has___.
A. six columns, date, particulars, folio, amount, debit and credit
B. five columns, date, particulars, folio, debit and credit
C. three columns, date, particulars, folio and amount
D. four columns, date, particulars, folio and amount
8. The medium of correcting errors whose difference are shown in the trial balance is by the use of __.
A. debtors’ account
B. creditors’ account
C. suspense account
D. ledger account
Use the information below to answer question 9 and 10.
Adamu Stores bought accessories from Mu’azu Beverages for ₦400 on credit. A trade discount of 10% and a cash discount of 15% were provided.
9. Find the total amount paid.
10. Calculate the cash discount.
11. In bank reconciliation process, discrepancies caused by timing arises as a result of __.
A. cash book and bank statement
B. bank statement only
C. cash book, bank statement and other incidental records
D. cash book only
12. The process of reconciling cheques between banks is termed cheque __.
13. In a bank reconciliation statement, interest charged for overdrawn balances should be added to the ___.
A. balance as per bank statement
B. bank balance as per adjusted cash book
C. aggregate balance as per cash book
D. bank balance as per cash book
Use the information below to answer question 14 and 15.
I. Stock of goods
IV. Cash at bank
V. Loan from the bank
14. Determine the current liabilities
A. III and V
B. Il and III
C. IV and V
D. l and II
15. Find the current assets.
A. Ill and V
B. II and I
C. IV and V
D. I and IV
16. The type of expense charged against the administration of a firm is the ___.
A. repairs on building
B. interest paid on loan
C. discount allowed
D. tax expense.
17. In a period of declining price, which of the following methods would result in higher profit?
B. Simple average.
D. Weighted average.
18. The item on the credit side of the trading account is the ___.
A. returns outwards
B. carriage on sales
Use the diagram below to answer question 19 and 20.
June 30 Closing stock 100 units at ₦ 90 July 8 Purchased 200 units at ₦95 10 Sold 160 units 17 Returned 80 faulty units purchased at ₦ 95 18 Purchased 200 units at ₦ 105 20 Sold 180 units 28 Purchased 200 units at ₦ 110 29 Sold 120 units 30 Sold 100 units
19. How many units were at hand as at July 30?
20. What is the value of stock as at the end of July 10 using FIFO?
B. ₦13 300
C. ₦15 200
D. ₦4 12 600
21. A typical example of a real account is ___.
22. The control account can be used in ___.
A. recording all business transactions of the enterprise
B. keeping records of all direct deposits in the bank account
C. monitoring the books of original entry
D. monitoring the efficiency of bookkeeping by accountants.
USE THE DIAGRAM BELOW TO ANSWER QUESTION 23 AND 24.
Incomplete Record (Extract)
23. What is the cost of goods sold?
A. ₦4 800
B. ₦8 480
C. ₦2 320
D. ₦9 900
24. Calculate the net profit.
A. ₦1 620
C. ₦1 420
D. ₦ 2 120
Use the information below to answer question 25 and 26
Trading account for the year ended 31st December 2009
25. Find the average stock for the period.
A. ₦27 000
B. ₦23 000
C. ₦ 28 000
D. ₦ 20 500
26. Calculate the cost of goods sold.
A. ₦61 000
B. ₦58 000
C. ₦ 62 000
D. ₦57 000
27. The costs that are directly traceable to the goods being produced is ___.
A. partly manufactured goods
B. overhead cost
C. total factory expenses
D. prime cost.
28. The production cost that does not form part of the product but is incidental to production and facilitates the production activities is the ___.
A. prime cost
B. indirect cost
C. total cost
D. direct cost.
29. Work-in-progress is the ___.
A. value of partly finished goods
B. value of finished goods on hand
C. sales less cost of goods sold
D. value of goods produced.
30. The major feature of the not-for-profit-making organization is that they are formed ___?
A. to use accumulated fund to describe the net amount owed to members
B. mainly to improve the welfare of her members
C. to engage in trading activities to sponsor its activities
D. in order to compute the receipts and payments account.
31. The subscription paid in advance is treated in the balance sheet of a club as ___?
A. a surplus
B. a liability
C. a deficit
D. an asset.
32. The capital of a not-for-profit-making organization is referred to as ___.
A. entity fund
B. capital owned
C. accumulated fund
D. capital employed.
33. The major objective of departmental accounts is to ascertain the ___.
A. contribution of each department to profit
B. materials sold in each department
C. insurance premium payable on employees
D. number of employees in each department.
34. The transactions relating to liquidation in partnership account is drawn by using ___.
A. current account
B. cash account
C. capital account
D. realization account.
35. The cost method of charging goods to branch is used where___.
A. branch stock adjustment account is in use
B. the retention of branch trading account is in addition to the cost of goods sold
C. goods are sent without invoice or any documents
D. goods are of a perishable nature on which a pre-determined price is inapplicable.
36. The correct entries to record goods transferred to branch from head office is to debit___.
A. branch stock account and credit goods sent to branch account
B. branch supplies account and credit branch stock account
C. branch stock account and credit purchases account
D. goods sent to branch account and credit branch stock account.
37. The two accounts that are normally opened in the head office when goods are transferred to a branch are ____.
A. branch supplies and branch receipts
B. branch stock account and goods sent to branch accounts
C. goods sent to branch account and branch receipt account
D. goods sent to branch account and branch supplies.
38. Goods invoiced to a branch can be sent using ___.
A. cost price, selling price and fixed percentage on selling price
B. cost price, selling price and fixed percentage on cost price
C. cost price and fixed percentage on cost price
D. cost price and fixed percentage on selling price.
39. The major point of agreement carried by the partnership deed is___.
A. 5% interest per annum on any loan
B. an oral agreement among the partners
C. method of inheritance by the partners' children
D. the profit and loss sharing ratio of the partners.
Use the information below to answer questions 40 and 41.
40. The interest on Kemi's capital is ___.
A. ₦ 1,000
B. ₦ 2,000
C. ₦ 500
D. ₦ 3,000.
41. The interest on Keme's drawings is calculated as ___.
A. ₦ 200
B. ₦ 150
C. ₦ 300
D. ₦ 100
42. Which of the following can be used on admission of a new partnership?
A. Revaluation account.
B. Profit and loss account.
C. Capital account.
D. Trading account.
43. Goodwill is determined using __.
A. capital contribution of old partners.
B. number of partners admitted.
C. the business and customer relations
D. number of active partners.
44. The founders of a company are __.
45. The fund in which all government receipts are paid is __.
A. consolidated revenue fund
B. development fund
C. trust fund
D. contingency fund.
46. Which of the following accounts for the highest revenue to Nigeria?
A. Import duties.
B. Personal income tax.
C. Petroleum resources.
D. Company tax.
47. If Aboki Holdings Limited issued 120,000 ordinary share of ₦2.00 each at market value of 5.50k each, the share premium would ___.
48. Which of the following is a signatory to federal government account?
B. Governor of Central Bank.
49. The chief accounting officer of a local government is the __.
C. Director of personnel
50. Which of the following signs general warrant for the release of money from the consolidated revenue fund?
A. Minister of Finance.
B. Chairman, Economic Advisory Committee
C. Permanent secretary.
D. Minister of Economic Planning