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ACC203 E-EXAM PRACTICE QUESTIONS AND ANSWERS

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The book of original entry used to record all goods sold and services rendered on credit to a third party in the order in which they occurred, irrespective of the amount involved is called

a. Sales day book

b. credit sales book

c. purchase day book

d. sales return day book

 

 

 

The goods bought and later returned by the buyer to the seller is called

a. return on sales

b. Return outward

c. Return inward

d. carriage inward

 

 

 

Another name for sales journal is

a. Sales day book

b. Return day book

c. purchase journal

d. purchase day book

 

 

 

Who is responsible for reporting on the true and fair view of an organizations financial statement

a. Accountant

b. Anayst

c. Auditor

d. Interpreter

 

 

 

One of the users of accounting information that will want to know about profit earned, dividends to be paid and net worth of the business is called

a. Suppliers

b. Shareholders

c. Tax authorities

d. Customers

 

 

 

 

The accounts which contains the names of persons, organization and firms is called

a. normal ledger

b. nominal account

c. impersonal ledger

d. personal ledger

 

 

 

The cash provided for the petty cashier is called

a. petty cash

b. balance b/d

c. financing assets

d. starting capital

 

 

 

The account in which a trial balance figure that did not agreed is posted to is refers to as___

a. ledger

b. journal

c. credit account

d. suspense account

 

 

 

In preparation of bank reconciliation statement, uncredited cheques are added to the balance as per

a. bank statement

b. uncredited cheques

c. cash book

d. cash statement

 

 

 

 

Income and expenditure accounts are called

a. credit sales

b. purchase ledger

c. nominal account

d. sales ledger

 

 

 

The principal accountant officer of Nigeria is called the

a. auditor

b. cash officer

c. accountant general of the federation

d. manager

 

 

 

Contra entry is a transaction between bank and ___

a. cheque

b. transaction

c. credit

d. cash

 

 

 

 

The authority of the accountant-general to disburse from government fund is called

a. warrant

b. approval

c. disbursement

d. implementation

 

 

 

Bad debts that organizations are hopeful of recovery are called

a. doubful debts

b. payable debt

c. irrecoverable debts

d. credit sales

 

 

 

If the closing stock is overstated, the effect on gross profit will be

a. suspended

b. cancelled

c. understated

d.overstated

 

 

 

A sale of goods to Ben was not posted. This is an error of

a. commission

b. original entry

c. principle

d. omission

 

 

 

The account in which a trial balance figure that did not agreed is posted to is refers to as___

a. suspense account

b. journal

c. ledger

d. credit account

 

 

 

Purchases of goods from Ben had been entered in Benson Account, this is an error of _

a. original entry

b. transposition

c. ommission

d. commission

 

 

 

 

In preparation of bank reconciliation statement, uncredited cheques are added to the balance as per

a. uncredited cheques

b. cash statement

c. bank statement

d. cash book

 

 

 

Income and expenditure accounts are called

a. purchase ledger

b. sales ledger

c. credit sales

d. nominal account

 

 

 

Bad debts that organizations are hopeful of recovery are called

a. credit sales

b. irrecoverable debts

c. doubful debts

d. payable debt

 

 

 

The principal accountant officer of Nigeria is called the

a. auditor

b. cash officer

c. accountant general of the federation

d. manager

 

 

 

The irrecoverable debts are refers to as

a. amount owed

b. future income

c. bad debts

d. credit

 

 

 

The principal book of accounts where the double entry principle is completed is called _

a. ledger

b. journals

c. suspense account

d. day book

 

 

 

The cash provided for the petty cashier is called

a. financing assets

b. balance b/d

c. petty cash

d. starting capital

 

 

Which method of preparing trial balance assumes that if equals are subtracted from equals, the remainders are equal”

 

a. divisional method

 

b. total and balance

 

c. balance method

 

d. total method

 

 

 

 

 

Money spent to acquire or purchase property of permanent nature for individuals and organisations is called

 

a. expenses

 

b. capital expenditure

 

c. revenue expenditure

 

d. revenue expenses

 

 

Which of the following is not a source document

 

a. ledger

 

b. payment voucher

 

c. receipt

 

d. bank teller

 

 

 

Books in which accounting transactions are first recorded before been posted to their various accounts in the ledger are refers to as

 

a. subsidiary books

 

b. ledgers

 

c. journal

 

d. debit books

 

A source document that is used to record full details of money paid for a particular purpose and shows when the money has left a particular account to another party or for the settlement of financial obligation is called

 

a. payment voucher

 

b. receipt

 

c. teller

 

d. invoice

 

 

The reduction in the value of an asset as a result of wear and tear is called..

 

a. time wasted

 

b. depreciation

 

c. useful time

 

d. assets time

 

 

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 is known as

 

a. account balancing

 

b. bank reconciliation statement

 

c. cash statement

 

d. bank checks

 

 

Which of the following source document is regarded as a negotiable instrument

 

a. credit note

 

b. cheque

 

c. teller

 

d. debit note

 

 

 

Those business documents confirming the occurrence of financial transaction between two or more parties is called

 

a. standing order

 

b. book-keeping

 

c. cash book

 

d. source document

 

 

 

 

 

 

 

 

 

The two indirect users of accounting information are financial analysts and

 

a. Customers

 

b. Emplyoyee

 

c. Government

 

d. Managers

 

 

 

 

Profit and loss account is prepared in order to ascertain

 

a. purchases

 

b. Net profit

 

c. total sales

 

d. cost of goods available for sale

 

 

 

 

 

One of the users of accounting information that will want to know about profit earned, dividends to be paid and net worth of the business is called

 

a. Shareholders

 

b. Customers

 

c. Suppliers

 

d. Tax authorities

 

 

The reduction in price given to a customer who purchase in large quantity is called

 

a. Trade discount

 

b. payment on sales

 

c. purchase discount

 

d. gift

 

 

 

ho is responsible for reporting on the true and fair view of an organizations financial statement

 

a. Auditor

 

b. Anayst

 

c. Interpreter

 

d. Accountant

 

 

The quality of a good information should be complete enough to give the user full information with which decision can be reached is known as

 

a. Reliable

 

b. Accurate

 

c. Completeness

 

d. Timely

 

 

The three branches of accounting are, auditing, management accounting and

 

a. Business

 

b. Customers

 

c. Reporting

 

d. Financial

 

 

In preparing trading profit and loss account, insurance payment is a charge to..

 

a. trading account

 

b. profit and loss account

 

c. income statement

 

d. balance sheet

 

 

The concept of accounting that sees an organization as a legal entity, separate from its owners is called

 

a. Going concern concept

 

b. Matching concept

 

c. Entity concept

 

d. Dual concept

 

 

 

The two indirect users of accounting information are financial analysts and

 

a. Customers

 

b. Emplyoyee

 

c. Government

 

d. Managers

 

1. Discount can be defined as an inducement given to_____ to enable them buy in large quantities,

a) Staff

b) Members

c) Customers

d) Marketers

 

 

 

2. Invoice under normal circumstances is meant for _____ transactions, which include credit sales and credit purchases.

a) Credit

b) Debit

c) All

d) Some

 

 

3. An/a _____ can be defined from a broad perspective as a person who carries out the accounting functions for or within an organization

a) Ledger

b) Accountant

c) Auditing

d) All the above

 

 

4. One of the accounting principles is the _____ system, which means that all accounting transactions have two parts to them

a) Economic

b) Military

c) Double entry

d) Single entry

 

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5. The purchases journal is not an/a _____ because it does not have a debit or credit side

a) Account

b) Invoice  

c) Book

d) Cheque

 

 

 

6. A contra entry is any transaction that has been recorded _____ in an account through a debit and a credit entry in the same account

a) Many times

b) Several times

c) Twice

d) Once

 

 

 

7. _____ are accounts that record the company’s properties and possessions that is expected to last for more than one accounting year.

a) Double entry

b) Real account

c) None of the above

d) All of the above

 

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8. Purchases represent total value of goods that are bought for cash and on credit for _____.

a) Restock

b) Refill

c) Refresh

d) Resale

 

 

9. Direct transfers or Standing orders are payments made directly by the bank as a result of previous instructions given by the customer to the bank.

TRUE / FALSE

 

10. _____  are services and goods that have been consumed or enjoyed during the year but which payment has not been made either in full or in part at the end of that financial year.

a) Commodities

b) Finish goods

c) Accruals

d) Annuity

 

 

11. Non-current assets are the company’s tangible assets that are expected to be used in, and for the organization for _____

a) Many years

b) Once

c) Twice

d) All the above

 

 

12. _____ Profit is the profit realized on trading activities alone without other expenses incurred in the business.

a) Market

b) Sales

c) Goods

d) Gross

 

 

13. Another name for returns inwards journal is returned inwards day book or _____.

a) Sales return book

b) Purchases journal day book

c) returns inwards day book

d) Petty cash book

 

 

14. Accounting information should be _____ from the thoughts and feelings of the person preparing

the report.

a) Hide

b) Free

c) Different

d) None of the above

 

 

15. Financial accounting is also used to determine the financial position of an organization which shows the company’s assets and liabilities at a particular_____.

a) Time

b) Season

c) Section

d) Date

 

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16.  What is the acronym of ICAN and Association of National Accountants of Nigeria (ANAN)

a) International Currency Accountant of Nigerian

b) Institute of Chartered Accountants of Nigeria

c) Institute of Chartered Account of Nation

d) International Currency Account of  Nigeria

 

 

17. Flexibility means that accounting reports should be easy to change, adjust and adapt to

suit different kinds of _____

a) Marketers

b) Account

c) Users

d) Banks

 

 

18. Accounting is a/an _____ because it follows a systematic and organized body of knowledge.

a) Mathematics

b) Science

c) Physics  

d) Economics

 

 

19. Internal control systems are _____ by men and there are people in organizations that want

to commit fraud and therefore look for ways to subvert the control system.

a) Inverted

b) Instituted

c) Reformed

d) Produced

 

 

20. A _____ is a known career that requires an identified path for the acquisition of specialized and/or formal education or training before rendering any service acquisition of a specialized 

Ans. Profession

 

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21. The report should be _____ enough to give the user full information about which decision

could be reached

a) Valid

b) Composed

c) Detailed

d) Complete

 

 

22. Auditing is an independent examination of the books of accounts, records, and financial

statement of an organization by an _____ person called an auditor.

a) Individual

b) Independent

c) Adequate

d) Experience

 

 

23. The direct users are members of the organization that relies on the _____ information to make daily, routines and other decisions.

a) Accounting

b) Basic

c) Legal

d) Right

 

 

24. Accounting concepts are principles upon which the preparation of accounting records are based, which are universally _____

a) Unacceptable

b) Acceptable

c) Recognized

d) All the above

 

 

25. Accounting as a Service Activity Accounting has physical products that can be bought and sold like the manufacturing companies.

TRUE / FALSE 

 

 

26. Accounting is a _____ because is a means of communicating business information.

a) Science

b) Language

c) Statement

d) All the above

 

 

27. The acquisition of key business _____ that includes income, expenditure, profit, assets

a) Understanding

b) Knowledge

c) Information

d) Statistics

 

 

28. _____ started from stewardship duty and is concerned with the keeping of books of accounts and preparation of financial statements for the entire organization on a historical basis.

a) Financial

b) Business

c) Personal

d) Management

 

 

29. ____ accounting is also referred to as managerial accounting

a) Management

b) Financial

c) Business

d) Personal

 

30. The _____ is interested in accounting information to determine the company income tax to be paid, and compliance with government rules and regulations governing the operation of the business.

a) Producer

b) Agent

c) Accountants

d) Government

 

 

31. An invoice is a document that shows the transfer of goods and/or provision of service between two or more parties for which payment is yet to be received.

TRUE / FALSE

 

 

32. _____ note is a document showing a claim or refund in favor of the receiver.

a) Debit

b) Credit

c) Bank

d) Account

 

 

33. Companies rely on _____ for different inputs such as raw materials, work-in-progress and

finished goods on credit.

a) Staff

b) Suppliers

c) Consumers

d) Marketers

 

34. Public sector accounting refers to accounting services carried out at the _____, state and

federal government ministries and parastatal.

a) Town

b) City

c) Market

d) Local

 

 

35. Cost accounting is a branch of accounting that is concerned with how to find out the _____ of goods produced or services rendered in an organization.

a) Product

b) Size

c) Cost

d) Weight

 

 

36. The _____ states that in recording the value of a company’s assets, the value should be stated or recorded at the cost price or the original cost

a) Record book

b) Company

c) All the above

d) Cost concept

 

 

 

37. _____  is a document that is used to record full details of money paid for a particular purpose.

a) Payment Voucher

b) Payment slip

c) Record books

d) Invoice

 

 

38. _____ is a book of original entries used to record all goods sold and services rendered on credit to a third party in the order in which they occurred irrespective of the amount involved.

Ans. Sales journal

 

 

39. _____ is the money spent in an organization in order to generate income either now or in the future.

a) Expenses

b) Expenditures

c) Gain

d) Profit

 

 

 

40. Net profit is the profit derived after all expenses and cost of sales have been deducted from

the net income including sales of goods and other income.

TRUE / FALSE

 

 

41. All but one are not examples of intangible assets

a) Goodwill

b) Copyrights

c) Patent rights

d) Trade fair

 

 

42. _____ ledger contains the accounts of the business owner e.g. capital, drawings, bank and loan account.

a) Private

b) Personal

c) Sales

d) Purchases

 

 

43. An entry where sales invoice total of N55,000 is mistakenly calculated to be N45,000 is refers to _____

a) Errors of omission

b) Compensating Errors

c) Errors of Principle 

d) Errors of Original Entry

 

 

44. An that takes place when a transaction is completely omitted from the books of accounts is known as _____

a) Errors of omission

b) Compensating Errors

c) Errors of Principle,

c) Errors of Original Entry

 

 

45. The left side of a _____ is called the debit side while the credit side is the right side.

a) Ledger

b) Accounting

c) Double entry

d) Cash book

 

46. An/a _____ is exchanged between a buyer and seller of goods and those that render services.

a) Receipt

b) Invoice

c) Cheque

d) Cash

 

 

47. _____  is a document that emanates from the bank because a bank teller is used to pay or lodge money (cash and cheque) into an account in a bank.

a) Bank Teller

b) Bank Statement

c) Bank Overdraft

d) Cheque book

 

 

48. _____ discount is a price reduction given to a customer who buys in large quantity for

consumption and not for resale.

a) Market

b) Customer

c) Bonus

d) Quantity

 

49. Another name for purchasing a day book is _____.

a) Account journal

b) Purchases journal

c) Purchases day journal

d) Account day book

 

 

50. Petty cash payments are small payments given out for some small expenses that occur almost on _____ basis in an organization e.g. transportation, fuel.

a) Yearly

b) Daily

c) Weekly

d) Monthly

 

 

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