ACC102 EXAM PRACTICE QUESTIONS AND ANSWERS

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1. Financial accounting involves an accounting process that starts with…..

a.book-keeping

 

 

2.Rudimentary form of accounting started with bookkeeping by Lucia Pacioli, an Italian______.

Ans:  monk

 

3. Cost accounting is the procedure for accumulating data to provide ____ for managerial action.

Ans: information

 

 

4. the procedure for accumulating data to provide information for managerial action is called…

b.Cost accounting

 

 

5. The concept that states that financial information should allow users to determine trends in the performance of an entity over time is…

c.The consistency concept

 

 

6. One of these is not why accounting information is needed

d.helps creditors to predict and evaluate the indetedness of the company

 

 

7. The divorcement of ownership from management created the following, except…..

a.Cost and management accounting

 

 

8. ……includes ability to trace transactions to documentary evidence

c.Objectivity

 

 

9. ……includes ability to trace transactions to documentary evidence

c.Objectivity

 

 

10. For accounting information to be made available early enough for its use, it must be…

a.timely

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11. Auditing is the _____ examination of the books of accounts and records of the company

 

a. Semi-independence

b. Centralized

c. Independent

d. Co-independent

 

 

The ___ accounting system refers to the keeping of accounting record by hand written of relevant posting in the books of accounts.

a. Automatic

b. Manual

c. Mechanical

d. Functional

 

 

The going concern concept is the assumption that an entity will _____ in operational existence for the foreseeable future.

a. Abort

b. Stop

c. Pack Up

d. Continue 

 

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The ___ concept is concerned with allocating expenses and income to the periods to which they relate

a. Deficit

b. Going

c. Accruals

d. Entity

 

____ is one of the qualities that financial information should have, as detailed in the Framework.

a. Procrastination

b. Inaccuracy  

c. Inconsistency

d. Consistency

 

 

A ______ can be defined as a legal obligation to transfer assets or provide services to another entity that arises from some past transaction or event.

Ans: liability 

 

 

 

Credit transactions often involve trade_____.

a. Accurals

b. Discount

c. Deficit

d. Incentives

 

 

The purpose of the invoice, which is sent by the seller, is primarily to ____ the buyer how much is owed for the goods supplied.

a. Inform

b. Update

c. Accuse

d. Religate

 

 

The main book of account in which all transactions are recorded is called the ____

a. Cash book

b. Purchase daybook

c. Ledger

d. Trial balance

 

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_____are generally referred to as the unsold portion of goods held for resale.

a. Inventories

b. Ledgers

c. Stock piles

d. Returns

 

 

______ represent the total of all credit and cash sales made to a third party.

a. Purchase

b. Inventories

c. Bad debts

d. Sales

  

CAPITAL = Total assets – Total _____

a. Inward

b. Outward

c. Liabilities

d. Stock

 

 

 

 

Bank ______ is the process of making the balance on the bank column of a cash book to agree with the balance on the bank statement received from the bank.

a. Reconciliation

b. Debating

c. Segmentation

d. Departmentalizing

 

 

_____ is the recording phase of accounting.

a. Factorization

b. Conceptualization

c. Statistics

d. Bookkepping

 

 

 

Financial accounting involves an accounting process that starts with bookkeeping and ends with the preparation and interpretation of financial ____.

a. Balancing

b. Exponential

c. Statements

d. Documentations

 

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_____ accounting provides information to management of a business to help them take better decision and to improve

 a. Management

b. Financial

c. Costing

d. Managing

 

 

 

The accounting profits generated in the financial statements provide the basis for determining the____ profits of a company.

a. Chargeable

b. Taxable

c. Gross

d. Net

 

 

____ of Account is a set of numbers and codes that define each account head and also differentiate between classes of account.

a. Diagram

b. Chart

c. Flow

d. Schedule

 

 In Conclusion