FALULIT UP VMIANAULIVIEINT Quite

UNIVERSITY OF BENIN, BENIN CITY

SECOND SEMESTER EXAMINATION

COURSE: INTRODUCTION TO FINANCIAL ACCOUNTING 11 {ACC 121)

2021/2022 academic session

10.

1}.

TIME ALLOWED 1:30 mins

Which of the following will reduce the absolute balance of a bank customer’s a/c
that shows an over drawn
balance (a) Bank charges (b) Dividend received (c) Direct debit (d) Overdraft
interest

In preparing a company’s bank reconciliation account statement at month end, which

of the following items is
adjusted in the cash book. (a) Transposition errors (b) Unpresented cheques (c)
Uncredited cheques (d) Bank
errors

The difference between cash book balance and bank statement balance cannot be
caused by (a) Uncredited
cheques (b) Standing order payments (c) Presented cheques (d) Bank Errors

Which of the following is not a reason for dishonouring cheques? (a) Lack of
mandate (b) Inconsistency in
amount and figure (c) Inconsistency in bearer identification (d) Difference in
issuer and recipient bank

A bank reconciliation showed the following differences between the bank statement
and cash book:
Unpresented cheques N750,000, Uncredited cheques $500,000. If the balance on the
bank statement is

NJ ,000,000 overdrawn, what is the balance in the cash book before any adjustment?
(a) Debit 750,000 (b)
Credit N750,000 (c) Credit 1,250,000 (d) Debit $1,250,000

Which of the following items is not usually found in a Bank Reconciliation

Statement? (a) Bank charges (b)
Adjusted cash book balance (c) Unpresented cheques (d) Dishonored chequcs

Commission of turnover, ATM card charges, charges for check booklets are examples
of (a) Standing order
payments (b) Direct debit (c) Standing order receipts (d) Overdraft.

Cheques already paid out by the firm, but yet to be presented by the payees to the
bank for payment are called
_ (a) Uncredited cheques (b) Unpresented cheques (c) Dishonoured cheques (d)
Posting cheques

An entry in Efosa books of accounts show that a cheque of N1,500 paid into the bank
had been entered twice
in the cash book. The reconciliation entry is __ (a) Debit adjusted cash book with
$1,500 (b) Credit
adjusted cash book with N1,500 (c) Debit adjusted cash book with N3,000 (d) Credit
adjusted cash book with
§3,000

A cheque amounting to N10,000 has not been made available to the bank for payment.
The correct treatment in
the bank reconciliation statementis_ (a) Add 810,000 to the adjusted cash book
balance (b) Deduct
10,000 from the adjusted cash book balance (c) All of the above (d) None of the
above

Regular payments made by the bank on the instruction of the customer is referred to
as (a) Direct
debits (b) Traders’ credit (c) Overdraft (d) Standing orders

. Which of the following is not a type of company? (a) Unlimited company (b)
Company limited by shares (c)

Company limited by Guarantce (d) None of the above

. The full meaning of CAC is ___ (a) Company Allied Commission (b) Corporate Allied
Commission (c)

Corporate Affairs Commission (d) Company Affairs Commission

. Which of the following is not a statutory book to be held by a firm? (a) Annual
returns (b) Register of

members (c) Minute books (d) Hour books

. Which of the following has the first right of claim on the assets of a firm in
the case of liquidation? (a)

Creditors (b) Ordinary shareholders (c) Preference shareholders (d) Directors

. What does FIFO mean? (a) Finished stock In Finished stock out (b) Fabrications
Inward Fabrications Outward

(c) Final Input Final Output (d) First In First Out

. Regardless of how long it takes to produce and sell inventory, inventory is

always considered to be a? (a)

Current asset (b) Current liability (c) Long-term asset (d) Stockholder's equity

. The latest cost of inventories is changed to production but the old prices are
changed to inventories on hand?

(a) Average (b) LIFO (c) FIFO (d) Perpetual

19,

. What is the principal criterion used to distinguish betw

. Which of the following method is suitable for calculating

. The partner that contributes to the daily

- Loss in the value of intangible asset of p

. One of the items is not in partner's a

a) More merchandise was purchased then the amount sold to

An increase in inventories indicates that? ( - gold to the customer (c) Not all
purchases were cash (d)

customer (b) Less merchandise was purchased ther

sseh navments were more than purchases on account . b ee ;

Cash payments were more (han | con tangible assets and inventories? (a) The
physical

t of the asset (c) The nature of the company’s activity, which

substance of the asset (b) The acquisition cos ‘ : A

ES ee held (d) The moment in the accounting period when the asset is

determines the purpose for which the asset is

acquired the cost of inventory when actual costs of individual

units of merchandise can be determined from the accounting records? (a) FIFO Method
(b) LIFO Method (c)

Specific Identification Method (d) Average Method

. The inventories are recorded at the latest price but the production cost is
changed old cost price? (a) FIFO (b)

Average (c) Both a & b (d) None

. Which one of the following methods for inventory valuation may be misleading when
the units are identical?

(a) FIFO Method (b) LIFO Method (c) Specific Identification Method (d) None

. Which type of inventory system requires updating the inventory balance at the end
of the accounting period?

(a) Periodic inventory system (b) LIFO (c) Perpetual inventory system (d) FIFO

. In LIFO method of inventory valuation? (a) Issue of stocks to production is at

latest price (b) Closing stock is

at latest price (c) Both a & b (d) Neither a nor b

. The inventory method that will always produce the same amount for cost of goods
sold in a periodic inventory
Ys p

system as in a perpetual inventory system would be? (a) FIFO (b) LIFO (c) Weighted
average (d) None of
these

. Inventory does not include? (a) Materials used in the production of goods to be
sold (b) Assets intended to be

sold in the normal course of business (c) Equipment used in the manufacturing are
sold (d) Assets currently in
production for normal sales

. In FIFO method of inventory valuation?(a) Closing stock is at latest price (b)

Issue of stocks to production is at

earliest price (c) Both a & b (d) Neither a nor b

. Sales revenues are usually considered earned when? (a) Cash is received from
credit sales (b) An order is

received (c) Goods have been transferred from the seller to the buyer (d) Adjusting
entries are made

. How will the profits be divided among partners in the absence of a partnership
deed? (a) Depending on the

capital invested (b) Depending on the work experience (c) Unequal (d) Equal

. Arclationship that subsist between two or more person carrying on a business with
the view of making a

profit. A) Partnership B) Joint Venture C) Wealth Venture D) Online Business.

. A formal documents drawn to regulate the conducts of partnership business is

known as a A) partnership deed

B) Profit document C) Drawing account D) Online document

. In case of partnership, an account known as ----- is drawn up after the net

profit has been ascertained on the

peers ete)

Statement of profit/toss. A) Appropriation account B) Salary account C) Drawing

Account D) None of the
above

. One of the following is a method of accounting for partner’s capital. A)

Fluctuating capital method B) Flexible

Method C) Protit Method D) Partner method.

. One of the following is not in the partnership deeds A) The amount of salary
received B) Bills dishonoured C)

Bills Receivable D) None of the above,

activities is A) Nominal part ; iv

The partner AS ) inal partner B) Profit partner C) Active partner D)

Obsafenct artners are A) Depreciation B) Amortisation C) Wear and Tear D)

. The partnership Deed came up in what year A) 1890 B

: 1899
. End of year adjustment on the trial balance are scotily 99 C)1980 D)1809

Document C) Cash book D) Subsidiary books cfiscted using A) Extended trail balance
B) Source

. The art of recording related partner's busin

record D All of the Above. SS activities is A) Book keeping B) Cahier Recorder C)

Suspense

. One of the items is not in the a

Ppropriation . .
drawings D) Revenue 7 Account of partners A) Salary B) Sharé of profits C) Interest
in

PPropriation Statement of financial

Current Liability C) Closing Inventories D) Non-of the above Reson fs) bigeeeairent
mstet 2)
43

44,
45.

46.

47.

59.

60.

61.

62,

63.

64

In the statement of financial positi

( i posttions of an organizati “ely, ar
C) Accruals D) Capitals, a ganization receivables are classified as A) Cash B)
Current Asset

----- shows the asset and liabilities of izati

; ; H Solan organization, A) State a] iti
incameU\olirnstie Menirtes D) All of the Aboen ) Statement of financial positions
B) Statement of
A trail balance is extracted from A) §
S na « tf “ oO ! “4 Q - ¥

Free ) Source document B) Accrual document C) P.

‘hich of the aos . PN : .

Which of the following is true for every end of year adjustments 4.) They affect
only the income statement b.)

hey affec ’ Statement ¢ { m neia siti we Bot 1 and B ij a tonly wit norma
I t only tate to { a ial rOSHION Cc, ) i i
{ l : t 1 i ) | A nd dyt ey affect account only “ith al

he snes eas for only It months’ rent during a financial year, what accounting term
is given to the
outstanding one month's rent A) Repayment b.) Prepayment c.) Underpayment d. \
Accruals

artners books D) All of the

- Adjusting entries__a.) Assign revenue to the period in which they are carned b.)
help to properly

measure the period’s net profit/loss c.) Bring asset and liability account to
correct balances d.)All of the above

y hee ia a peemed rent at the end ofa period represents? a.) Asset b.) Expense c.)
Liability d.) Revenue
. How does fatlure to record accrued revenue distort the financial statement? A.)
It understates revenue, net

income and current assets b.) it understates net income, stockholders’ equity and
current liabilities c.) ft

overstates revenue, stockholders’ equity and current liabilities d.) It understates

current assets and overstates
stockholders’ equity.

. Adjusting entries for Accrued rent is a.) DR: accrued rent& CR: Rent expense b.)
DR: Accrued Rent &CR:

Cash c.) DR: Rent expense & CR: accounts payables d.) DR: Rent expense & CR:
accrued rent

. Which one of the following is a correct adjustment entry-to record depreciation-

on furniture? a.) DR:

Depreciation expense - furniture - & CR: Accumulated depreciation - furniture b.)

DR: Depreciation expense -
furniture & CR:Fixed assets c.) DR: Depreciation expense - furniture& CR: Capital
d.) DR: Accumulated
depreciation & CR:Depreciation expense — furniture

. Accrued revenue is revenue that A.) Has been received but not earned b.) Has been
earned but not received c.)

Has been earned and received d.) Has neither been earned nor received.

. Prepayment is an example of a.) Income b.) Current Asset c.) Expense d,) Equity
. Income in Advance is treated as ------- in statement of financial position. A)
Income B) Liability C) Asset D)

Expense

. Rent received is an example of a.) Expense b.)Income c.)Equity d.)Asset

. How would you adjust for an income received in advance in the P-or L A/C (a) Dr:
P-or L-A/C.{b)-Cr: P or L-

A/C, (c) Ignore it because it has no effect (d) It will be adjusted in the
statement of financial position

. When there is drawings of goods at cost, the correct adjustment is ...........

(a) DR: Purchases and CR:

Drawings A/c (b) DR: Drawings and CR: Sales A/c (c} DR: Sales and CR: Drawings A/c
(d) DR: Drawings

and CR: Purchases A/c ;

When there is provision for discount on payables in the first ycar, the following
entries will be made. (a) DR:
Provision for discount Receivable A/c and CR: Statement of P & L A/c (b) DR:
Statement of P & L A’c and
CR: Provision for discount Receivable A/c (c) DR: Sales and CR: Provision for
discount Receivable A/c (d)
DR; Provision for discount Receivable A/c and CR: Sales A/c

An increase in the provision for bad debt will take the following adjustment (a)
Dr: Statement of P
or L A/c and Cr: Provision A/c. (b) Dr: Provision A/c and Cr: Statement of P or L
(c) Ignore it
because it has no effect (d) It will be adjusted in the statement of financial
position only

is a standard trial balance that includes columns extending to the right, where
each column contains a
redit. (a) Extent ledger balance (b) Extent trial balance (c) Extended ledger
balance

veeneee

sub-column of debit and c

(d) none of the above

One of the following is not among the contents of an extended trial balance (a)
statement of profit or less

balances (b) initial ledger balances (c) adjusted trial balance (d) statement of
cash flow balances asad

All but one of the following is a limitation of an extended trial balance (a) An
entry which is omitte act
be entered into the journal entries (b) An error can arise which will compensate
the other entry, and the tria
balance will still be approved or balanced (c) A correct amount can be entered in
the wrong account, same as a
wrong amount can be entered in the correct account (d) a pictorial representation
adjustments to ledger

i i nce er P ; ei
balances in trial bala aid his landlord in advance three months’ rent. What is it

. financial year, a business enterprise p:

mth Se crotement of financial position? (a) Accrual (b) Drawings (c) Cash in banks
(d) Prepayment

3
65.
66.

67.

68.
. increase in drawings will result in ......

70.

71.

74,

15:
76.
77.
78.
79.
80.

84.
85.

86.

87.
88.
89.

90.

One of the following is an administrative cost (a) increased provision for bad debt
(b) a and c (c) decreased
provision for bad debt (d) depreciation charge of non-current asset

One of the following is a selling and distribution cost (a) increased provision for
bad debt (b) depreciation
charge of non-current asset (c) decreased provision for bad debt (d) All of the
above

Prepaid income is treated as ....... (a) current liability (b) current asset(c) a
and b (d) All of the above

Accrued income is treated as ...... (a) current liability (b) current asset(c) a
and b (d) All of the above
(a) increase in equity (b) decrease in equity (c) a and b (d) All of the

above

The double entry if cash is withdrawn from the business is ..... (a) Dr. Purchases
a/c and Cr, Drawings a/c (b)
Dr. Drawings a/c and Cr. Purchases a/c (c) Dr. Drawings a/c and Cr. Bank a/c (d)
Dr. Drawings a/c and Cr.
Cash a/c ;

The double entry if goods are withdrawn at cost from a business is ..... (a) Dr.
Drawings a/c and Cr. Cash a/c
(b) Dr. Purchases a/c and Cr. Drawings a/c (c) Dr. Drawings a/c and Cr. Bank a/c
(d) Dr. Drawings a/c and Cr.

Purchases a/c

. The double entry if goods are withdrawn at selling price is ...... (a) Dr.
Drawings a/c and Cr. Cash a/c (b) Dr.

Drawings a/c and Cr. Purchases a/c (c) Dr. Drawings a/c and Cr, Bank a/c (d) Dr.
Drawings a/c and Cr. sales
a/c

. If the value for Trade Receivable N100, 800, bad debt written off is N750 and
provision for bad debt is

N1,050, closing inventory is N1,000, accrual N3,000 and prepayment N2,000. The
value of current asset is (a)
N100,800 (b) N100,050 (c) N99,000 (d) N102,000

If the value for Trade Receivable N100, 800, bad debt written off is N750 and
provision for bad debt is
N1,050, closing inventory is N1,000, accrual N3,000 and prepayment N2,000. The
value of trade receivable
after adjustment is (a) N102,000 (b) N100,050 (c) N100,800 (d) N99,000

The relationship between profit for the year and equity is (a) inverse (b)
tangential (c) a and b (d) direct

The authorizing document for the payment for a particular expense or service is
KNOWN AS.......sserrsseeesees

An account in which the net difference in the trial balance total is recorded is
called...........000+
An accounting concept that does not recognize income until income has been earned
is called.........--sssc0e00
Discounts given to customers to encourage them to make prompt settlement of their
accounts is called.........
Which of the following is NOT true? (A) The International Accounting Standards
Board (LASB) is an
independent government owned body (B) IASB develops International Financial
Reporting Standards (C) The
IASB is a privately funded body that develops and approves IFRS (D) Prior to 2003,
standards were issued as

International Accounting Standards.

« sevesesscecerenssalh is the amount set aside out of profit for no specific

purpose (A) Trade discount (B) Capital

Reserves (C) Provisions (D) Liability.

2. Which of the foliowing items is a revenue expenditure? (A) Procurement of

furniture (B) Purchase of property

(C) Credit purchase of a tractor (D) Procurement of stationery.

. The body charged with the responsibility of regulating accounting standards in

your country is (A) Central
-Bank (B) Ministry of Finance/Ministry of Finance and Development Planning (C)
Financial Reporting Council
of Nigeria (D) The Professional Accountancy Institute in your country.

In accordance with the International Financial Reporting Standards, fixed assets

are now described as (A)
Qualified assets (B) Durable assets (C) Depreciable assets (D) Non-current assets.

Which of the following enjoys a limited liability A) A general partnership B).A

corporation C). A sole
proprietorship D). none of the above

An asset costing N5,900 was bought on I January 2021. On 31 Dec 2021, the asset had
a fair value of N6900 and
an associated selling expenses of N1200. At what price will the asset be measured
at the reporting date (A) N1,200
(B) 6,900 (C) 8 5,700 (D) 85,900

Inveritory is measured at the lower of (A) cost and recoverable value (B) cost and
fair value less cost to sell (C) cost

and value in use (D) cost and carrying amount

All except ONE are examples of inventories (a) Raw materials (b) Non-current assets
(C) finished goods (D) work

in progress
Which of these methods are prescribed by the IFRS in valuing inventories? (A) FIFO
AND LIFO (B) FIFO and SAP
(C) WAP and SAP (D)) WAP and FIFO
Inventories should be recognized as (A) current-assets and as an income in
determining the cost of goods sold (B)
current liability and as an income in determining the cost of goods sold (c) as an
expense and current liability (d) as
an expense and current-asset

4
INTRODUCTION TO FINANCIAL ACCOUNTING H(ACC121)

IN

_ The following are types of companies except

. The activities of a company are regulated by

DEPARTMENT OF ACCOUNTING,
UNIVERSITY OF BENIN, NIGERIA
SECOND SEMESTER 2021/2022 EXAMINATION

2021/2022 FULL TIME

STRUCTION: Attempt all questions Time: 70 Mins

(a) company limited by guarantee (b) company limited by

shares (c) company limited by association (d) unlimited liability company

_ (a) Deed of partnership (b) capital structure of the

company (c) memorandum and articles of association (d) voting and non-voting right

_ The following are true of companies except (a) companies are separate legal
entities (b) statutory audit of

financial statements are required for public companies (c) A company is dissolved
upon the death of any of
its members (d) companies can sue and be sued

4, Contents of memorandum of association includes the following except (a) the name
of the company (b)
powers and responsibilities of directors (c) location of the registered office of
the company (d) The
number/amount of the authorized share capital -

5, A unit of ownership in a company can be referred to as __ (a) Discount (b)

Premium (c) Hybrid Securities
(d) Share | | | |

_ The excess amount by which the share capital of a company is issued above its
nominal value is ___ (@)
Premium (b) Bonus Issue (c) Discount (d) Paid-up capital | —

7. Shares issued to existing shareholders on a pro-rata basis without the

shareholders making any payment for
shares received is called ___ (a) Share Premium (b) Bonus Issue (c) Right Issue @)
Discount pdtey Shore

8. ___ is when shares are issued to subscribers at a value which is lower than
nominal value of shares

i b) Bonus Issue (¢ Right Issue (d) Discount

en Me isti O aeehaWie® on a pro-rata basis and for which the shareholders are to
make

0, Shares issued. to existing inh Oe EON) ie fo

payment for shares received is called __ (a) Share Premium (b) Bonus Issue g y oo

10 Where more shares are applied for than are available for issue, shares are said
to be
i i d (d) irredeemable

subse ". under subse et or $300 oN outstanding in the adjustment column of the
extended
gh The oranae i ee fe vet credit accrued rates AIC (b) credit rates AJC; debit
accrued rates A/C

trial balance is (a) debit rates ; Drie abore

i i ‘tion: credit accrued rates A/C (a) all of the a

(¢) ded hvaes nares ed to resolve errors that (a) affect the trial balance (b) do
not affect the
12. The extended Trial Balance
of the above

at ll Oe or the ta oe adjusting entries are posted into the ledger through the use
of

13. While preparing the extended We Aare |

@ Grane oe « Recep Od tral balance (a) initial trial balance (b) adjustments (¢)
final
i nin
14. One of these Is not a colum
ial balance Q are adi 1 b/d (c) Net profit (d) Net loss ;
wal be \ r debit usually indicates (a) Bal c/d (b) Bal bid ( Peron cols of the
extended

15. Excess of credit ove djust for N800 electricity prepaid. in the adj too ity AC
re
. : fas t to adju ) «sw A/C. (b) credit € . .

16. The accounting treatmep vs AIC: oredit prepaid electricity ) edit oy ofthe
above

trial balance 1s (a)debit electri NO of financial position; credit electricity Ce

fo final ial
repaid electricity AIC (c) debit s al -nitial trial balance (b) extended trial be
° f these is not a type of Trial balance (a) intitle
17. One 0 s ais
i ° ofit (d)
balance (d) open trial balance + adicates (A) Bal c/d (b) Bal b/d (c) Net pr ee ra)
True (b) False )
18. Excess of debit over credit usually nel te records have been kep

8 ss » accura’
Wi «4. tial balance 2arers, it implies that the accure
Whenever Ue HAP pen

a wea fy bone of the above

Sometimes (0) Ne page Lof4
31.
32.
33%

34

35

. The adjustment carried out in the extended trial balance could include all except
(a) Provision for doubt

partner (b) depreciation on building (c) accrued rent (d) insurance In advance

. If at the end of a financial year, a business enterprise is owed rent, such in

the statement of financiay

position is called (a) Accrual (b) Prepayment (c) Cash in banks (d) All of the
above

. One of the following is an administrative cost (a) increased provision for bad
debt (b) depreciation charge

of non-current asset (c) decreased provision for bad debt (d) All of the above

. --- is an example of a selling and distribution cost (a) increased provision for
bad debt (b) depreciation

charge of non-current asset (c) decreased provision for bad debt (d) None of the
above

. Prepaid income is treated as ....... (a) current liability (b) current asset(c)
noncurrent asset (d) Noncurrent
liability
25. Increase in drawings will result in ...... (a) increase in equity (b) decrease
in equity (c) no effect on equity

(d) None of the above

. The double entry to record goods withdrawn at cost is ..... (a) Dr. Drawings a/c;
Cr. Cash a/c (b) Dr.

Drawings a/c; Cr. Purchases a/c (c) Dr. Drawings a/c; Cr. Bank a/c (d) Dr.
Purchases a/c; Cr. Drawings a/c

- The double entry to record goods withdrawn at selling price is ..... (a) Dr.
Drawings a/c; Cr. Cash a/c (b)

Dr. Drawings a/c; Cr. Purchases a/c (c) Dr. Drawings a/c; Cr. Bank a/c (d) Dr.
Purchases a/c; Cr. Drawings
ale

. If trade receivable is N100,800, bad debt written off is N750, provision for bad
debt is N1,050, closing

inventory is N1,000, accrual is N3,000 and prepayment is N2,000. The value of

current asset is (a)
N102,000 (b) N103,800 (c) N101,800 (d) N100,800

- One of the following is not an operating cost (a) provision for bad debt (b)
depreciation charge (c) factory

rent (d) discount allowed

. The double entry to record increase in provision for bad/doubtful debt is

------------ (a) Dr. expense A/c and

Cr. Provisions with the amount on the trial balance (b) Dr. statement of profit or
loss and Cr. Provisionwith
the amount of increase (c) Dr. provision A/c and Cr. statement of profit or loss
with the amount of increase
(d) none of the above

Item | Batch | Cost NRV |

1 A $40,000 N34,000

2 A 80,000 82,000

3 B $110,000 $10,400

4 B N9,800 9,500

Use the above table to answer questions 31 to 33

Using the global basis, the value of inventory is (a) N135,900 (b) N133,900 (c)
N131,450 (d) N132,400
Using the item basis, the value of inventory is (a) N128,750 (b) $131,400 (c)
N133,500 (d) N134,000
Using the batch basis, the value of inventory is (a)N31,450 (b)N31,800 (c)N31,500
(d)N33,800
January 4"" purchased 200 bundles at N2000
" 7" sold 160 bundles at N3600
"18th purchased 140 bundles at N2400
"20" sold 100 bundles at N3900
Use the above information to answer question 34 to 38

. Using FIFO stock valuation method, calculate the cost of goods sold (a) N544,000
(b) N735,000 (c)

NO611,000 (d) $857,000

. Using FIFO stock valuation method, calculate the total cost of goods purchased in
January (a) N777,000

(b) N818,500 (c) N736,000 (d) N700,100

Page 2 of 4
46,

47.

48.

49.

. Calculate the closing stock

. The weighted aver

. What is the gross profit for the
. The following are the b

. Inventories are measured at the

- Ina partnership business, Which ac

. According to Nigerian law,

. What role does the Corporate Affairs Co

. What does the term “capit

5. When a new

as at 31% J

N196,000 anuary using FIFO (a) N163,5000 (b) 192,000 (c) N164,500 (d)

Age price for January 18" is (a) N221 1.3] (b) N1125.33 (c)N2332.33 (d) N2311.1]

month of January? (a) N543,000 (b) N475,600 (c) N588,800 (d) N422,000
ases of comparing cost with Net Realisable Value (NRV) except (a) Glob i
(b) Item basis (c) Cost basis (d) Batch basis nba bass

lower of ___ and (a) expenses and overhead (b) cost and net

ribution cost (d) production and administration

count captures the distribution of profit or loss among partners based on

their agreed shares? (a) Current Account (b) Capital Account (c) Appropriation
account (d) Goodwill
Account

realisable value (c) selling and dist

what is the maximum number of me

members (b) 15 members (c) 20 members (d) Unlimited members

mmission (CAC) play in Nigeria? (a) Enforcing partnership

agreements (b) Drafting partnership deeds (c) Dissolving partnerships (d)
Registering companies and
partnerships

mbers allowed in a partnership? (a) 10

al contribution"
refer to ina partnership? (a) Interest paid on loans (b) Profit
distribution (c):Amount pariners invest to st

art the business (d) Salaries paid to partners

partner is admitted into a partnership, how is goodwill usually treated in the

accounting
books? (a) It is debited to the new partner's Capital Account (b) It is credited to
the old Partners' Current
Accounts (c) It is debited to the Goodwill Account (d) It is credited to the new
Partners' Current Accounts
What does PSR stand for in partnership accounting? (a) Partnership Sharing Ratio
(b) Profit Sharing Rate
(c) Partner Stock Register (d) Partnership Settlement Record

Which account is used to distribute interest on capital, interest on drawings, and

salary to partners? (a)
Current Account (b) Capital Account (c) Goodwill Account (d) Appropriation Account

In partnership liquidation, what is the usual order of asset distribution? (a)

Return of capital contributions,
payment of debts, profit distribution (b) Payment of debts, profit distribution,
contributions (c) Profit distribution, payment of debts, return of capital
contributions
contributions, profit distribution, payment of debts

What is the primary purpose of an "Interest Expense A/C" in a partnership? (a)

Tracking inventory

purchases (b) Recording partner salaries (c) Calculating profit distribution (d)
Recording interest paid on
capital

return of capital
(d) Return of capital

Which account is credited when a partner takes a loan from the partnership? (a)
Interest Expense A/C (b)

Cash/Bank A/C (c) Partner's Drawing A/C (d) General Expense A/C

A cheque already paid by the company but not yet presented to the bank before
reconciliation date is

termed (a) uncredited cheque (b) with-held cheque (c) dishonoured cheque (d)
unpresented cheque.

. The bank statement and the cash book must always reflect the same transactions on
a daily basis (a) True

(b) False

» Cash or Cheque paid into the bank will appear on which side of the cash book. (a)
credit side (b) debit side

(c) all of the above (d) None of the above

i ank reconciliation
- Cheques already issued out but not yet presented to the bank before the
preparation of bank reco

> nted
are referred to as (a) uncredited Cheques (b) dishonoured cheques (c) abandoned
cheques (d) unprese
cheques

Page 3 of 4
33.

56.

Jose Premium Services acquired a mach

expected to have a residual value of

. Ifa cashbook shows a larger balance than that of

' PA ; ing
ce of a firm’s bank position with its own accounting
~ is a financial report that compares the balance of a

A siliati d) Ledger
records (a) Cashbook (b) Profit or loss account (c) Bank reconciliation wee A
( SKesue wih ie and
Musa tanned a cheque of N50,000 to Abel, but unfortunately Abst mt a Safad
ieeoteniana)
presenting it to the bank, the bank rejected the cheque. Whatis this rejected
cheque c:

cheque (b) Dishonoured cheque (c) Unrepresented cheque (d) Staled ch Wi tatement
(a) Bookkeeper (b)
It is the responsibility of one of the following to prepare bank reconciliation s

Accountant (c) Director (d) All of the above k. (a) True (b)
During the process of bank reconciliation, uncredited cheques are added back to the
cashbook. (a)

False (c) Ail of the above (d) none of the above a P

One of the following is not the reason for preparing bank reconciliation statement
(a) Merger an

i i j f the above
acquisition (b) Transaction accuracy (c) Fraud detection (d) None o 2\ a
the bank statement at reconciliation date. This might be

due to one of the following (a) uncredited cheque (b) unpresented cheque (c)
dishonoured cheque (d) all of

the above

ine on Ist January, 2018 with a useful life of 5 years for #750,000. It is
#5,000. Using the reducing balance method with a depreciation rate of

63%, answer questions 61 to 64

él.
62.
63,

64,

65,

66.

67.
68.

69,

70.

What is the annual depreciation charge for year 2018 (a) #744,799 (b) #472,500 (c)
#64,685 (d) #8,855
What is the annual depreciation charge for year 2020 (a) #744,799 (b) #472,500 (c)
#64,685 (d) #8,855
What is the annual depreciation charge for year 2022 (a) #744,799 (b) #472,500 (c)
464,685 (d) #8,855
What is the accumulated depreciation as at 31"December, 2022 (a) #744,799 (b)
#749,744 (c) #749,799
(d) #744,749

PPE stands for (a) Poor Planning Exercise (b) Property Plant and Equipment (c)
Property Planning
Exercise (d) Property Plant and Equity ”
The amount at which an asset is recognized in the statement of financial Position
after deducting

Current asset against Profit (b) to make cash available to replace non-current
assets (c) to show th
current value of non-current asset (d) to make a Provision for repairs .

A non-current asset With a cost of #900,000 and accumulated depreciation of

#800,000 is Sold for #89 000

What 1S the amount of the gain or loss on dis osal of the asset? a #20,000 loss b
#80,0 0 c

EMS you all succgas POU Cxonaty MSHS,

MET