ACC102 EXAM PRACTICE QUESTIONS AND ANSWERS
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
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
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
_____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
_____ 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