PAPER TYPE: YELLOW
Which Question Paper Type of Principles of Accounts as indicated above is given to you?
A. Type Green.
B. Type Purple.
C. Type Red.
D. Type Yellow
2. The basis upon which assets of an organization is valued is the __.
A. historical concept
B. business entity concept
C. periodicity concept
D. materiality concept.
3. An accountant must not only be interested in record keeping but also in ___.
A. the application of professional competency
B. the accuracy of postings
C. the casting of financial figures
D. effective preparation of balance sheet.
4. The correct posting in the double entry system of account when there is an increase in assets, expenses, capital or liabilities is to debit ___.
A. capital and credit liabilities
B. liabilities and credit assets
C. assets and credit capital
D. capital and credit assets.
5. The capital of a sole trader can be increased by __.
A. debiting the capital account
B. crediting the capital account
C. debiting the cash account
D. crediting the cash account.
6. Akirika bought a motor van for his business by cash. The entries are to debit ___.
A. motor van and credit Akirika
B. sales and credit Akirika
C. motor van and credit cash
D. cash and credit motor van.
Use the information below to answer questions 7 and 8.
Ibrahim, a microbusiness operator, sold 10 bags of sugar to Jide at total cost of ₦12,000.
7. In the book of Ibrahim, the entry to record the transaction would be to debit __.
A. sugar account N12,000 and credit Jide ₦ 12,000
B. Jide ₦12,000 and credit sales account ₦12,000
C. Ibrahim 412,000 and credit Jide ₦ 12,000
D. sugar account N 12,000 and credit Ibrahim ₦ 12,000.
8. The record in Jide's book would be to debit __.
A. purchases N12,000 and credit Ibrahim ₦12,000
B. purchases ₦ 12,000 and credit sugar account 412,000
C. Jide ₦12,000 and credit purchases ₦12,000
A. ₦6,950 credit
B. ₦6,950 debit
C. ₦ 6,000 credit
D. ₦ 6,000 debit
10. In a three-column cash book, dishonoured cheques will be shown on the
A. bank column (debit)
B. bank column (credit)
C. cash column (debit)
D. cash column (credit)
A. trade discount
B. cash discount
C. discount allowed
D. discount received
12. Cash can be drawn from the bank using ___.
A. a bank teller
B. a credit card
C. a recharge card
D. ATM card
13.13.In a modern day banking system, cash transfer cannot be made where the transferor ___.
A. has no sufficient cash with the bank
B. has no account with the bank
C. does not reside in the bank's country
D. does not possess the domestic currency
The adjusted cash book balance is ___.
15. Find the gross profit ___.
16. Calculate the net profit ___.
Use the information below to answer questions 17 and 18.
At the end of a financial period, the trading profit and loss account of a sole trader
shows a profit of ₦180,000. It is however discovered that revenue of ₦15,000 is
recorded as expenses while expenses of ₦4,000 is recorded as revenue.
17. Determine the adjusted net profit ___.
18. The revenue to be added as an adjustment is ___.
19. Which of the following is an item of special assets?
A. Fixed assets
B. Current assets
Use the information below to answer questions 20 and 21.
1/5/07 Purchased 100 bags of milk at ₦10.00k each
3/5/07 Purchased 60 bags of milk at ₦11.50k each
15/5/07 Issued 85 bags of milk
15/5/07 Purchased 180 bags of milk at ₦12.80k each
22/5/07 Issued 145 bags of milk.
20. Using FIFO method, what would be the value of stock as at 9/5/07?
21. Using simple average method, calculate the value of stock after 22/5/07?
22. The LIFO method has an advantage over FIFO in that stocks are valued at ___.
A. previous prices
B. current prices
C. average rates
D. flat rates
23. In sales ledger control account, returns inwards is usually ___.
A. debited and debtors credited
B. credited and sales returns debited
C. debited and cash credited
D. credited and bank credited
24. Purchasers ledger control account can also be referred to as ___.
A. sales day book
B. purchases day book
C. creditors ledger
D. debtors ledger
25. Which of the following is a debit item in the sales ledger control account?
A. Cheque receipts
B. Dishonoured cheques
C. Discount allowed
D. Bills receivable
What is the sales value?
28. In manufacturing accounts, finance expenses are charged to the __?
A. departmental account
B. trading account
C. profit and loss account
D. balance sheet
Use the information below to answer questions 29 and 30.
Total production cost ₦360,000
Factory overhead cost ₦56,000
Selling price per unit ₦ 120
Production volume 4000 units
29. What is the total manufacturing profit?
30. Determine the value of prime cost ___.
31. The excess revenue over expenditure is charged to ___.
A. profit and loss
B. revenue account
C. accumulated fund
D. income and expenditure account
32. Given: Receipt and Payment Accounts (Extract)
Determine the balance?
A. 415,000 debit
B. 215,000 credit
C. 215,000 debit
D. 315,000 credit
33. The main advantage of a departmental account is that its ___.
A. expenses are shared
B. gross profit is computed
C. net profit is computed
D. balance sheet is obtained
34. Given: Trading, Profit and Loss Account (Extract)
Less cost of goods sold
Cost of good available for sale
Less stock 31/12
Cost of goods sold
From the above information, the gross profit department X is ___.
A. ₦3, 800
35. In the head office ledger, the value of goods sent to the branch are ___.
A. debited to the head office current account
B. debited to the branch current account
C. credited to the head office current account
D. credited to the branch current account
36. Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?
A. Cost price
B. Fixed percentage on cost
C. Selling price
D. Invoice price
Use the information below to answer questions 29 and 30.
The partners capital are: Modibbo ₦60,000 and Jakata ₦90,000. The partners share
profit and losses in the ratio of their capital contributions.
The net profit for the year is ₦12,000.
37. Find Modibbo's share of the profit ___.
38. What is Jakata's profit sharing profit?
39. In what way can goodwill be written off in a partnership business?
A. Using the partners' profit and loss sharing ratio
B. By neglecting the ratio of partners’ capital contributions
C. By sharing it unequally among the partners where no agreement exists
D. By sharing it among the active partners only
40. Ngozi and Musa with a capital of ₦30,000 each decide to admit Mary into the partnership business with a capital of ₦20,000 and goodwill ₦15,000. If the profits and losses are to be shared equally, the journal entries to record goodwill are __.
A. debit goodwill ₦15,000, cash ₦20,000 and credit Mary's capital ₦35,000
B. credit goodwill ₦15,000, cash ₦20,000 and debit Mary's ₦35,000
C. debit goodwill ₦15,000, credit cash ₦20,000 and credit Mary's capital ₦20,000
D. debit old partners’ capital ₦15,000, credit cash ₦20,000 and Mary's capital ₦35,000
41. In converting a partnership into a limited liability company, the necessary accounts to be opened in the books of the company are __.
A. business purchase account and ordinary share capital account
B. Business purchase account, vendor account and ordinary share capital account
C. business purchase account and vendor account
D. ordinary share capital account, vendor account and unpaid share capital account
42. Given: I. The Memorandum of Association of the Company
II. The Article of Association of the Company
III. The Incorporation documents
From the above, which of the following is delivered to the Registrar of companies for incorporation
A. I and II
B. I, II and III
C. I and III
D. II and III
43. When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such money is to debit __.
A. application and allotment account and credit unsubscribed shares
B. application and allotment account and credit cash
C. oversubscribed shares and credit allotment account
D. oversubscribed shares and credit allotment account
44. Investment at cost of a company is to be disclosed under ___.
A. trading accounts
B. profit and loss account
C. balance sheet
D. source and application of fund
Use the information below to answer questions 45 and 46.
Purchasers - 44,880
Sales - ₦85,850
Trade creditors - 12,250
Trade debtors - 24,000
Accrued expenses - 350
Prepaid expenses - 700
Stock 1/1/2006 - 25,120
Stock 31/12/2006 - 27,840
45. Calculate the acid test ratio ___.
46. Determine the number of times stock was turned over during the period to the nearest figure ___.
47. Which of the following is a source of revenue to the federation account?
A. Market fees
B. Bicycle licences
D. Property rates
48. The book into which all types of a ministry's expenditure are recorded is the ___.
A. ledger book
B. payment book
C. vote book
D. expenditure book
49. The Petroleum Technology Development Fund is under the ___.
A. general fund
B. contingency fund
C. trust fund
D. capital fund
50. The power to appoint the Auditor General of the Federation is vested in the
A. National Assembly
C. Judicial Service Commission
D. Civil Service Commission