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Principle of Accounting 2016 QUIZ STUDY
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Balance as per cashbook 2, 970
Bank Charges 220
Unpresented cheques 3, 950
Uncredited cheques 4, 178
Direct debit by bank 1, 0000

Determine the balance as per bank statement.
A. # 1,978
B. # 1962
C. # 1,522
D. # 2,522

The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?
A. #184, 000
B. #196,500
C. #212,000
D. #168,500

The major advantage of the journal proper is that it
A. helps in the preparation of the balance sheet
B. prevents fraud and theft of item of the business
C. serves as a book of instruction to the bookkeeper
D. help the banking industry to be efficient

Departments K Y
Opening 2,500 800
Purchases 120,000 100,000
Sales 180,000 200,000
Salary 8,000 30,000
Closing stock 3,000 1,500
Rate expenses of 1,500 are apportioned in the ratio 1:2

The gross profit for K is
A. # 60,700
B. #23,500
C. #60,500
D. #82,500

One of the objectives of accounting is that it can be used for
A. business decision making
B. due process in business
C. motivating employees
D. determining the work force

The ratio that gives the indication of the efficiency of a firm's sales with respect to cost of goods sold is a
A. return on capital employed
B. gross profit margin
C. net profit margin
D. return on equity

The instrument used in analysis and interpretation of financial statement is the
A. accounting ratios
B. income and expenditure extract
C. balance sheet extract
D. found accounting

An item in the balance sheet of a limited liability company is
A. accrued expenses
B. lighting and heating
C. salaries and wages
D. general expenses

The documents that provide instant information to firms on their tranactions with banks are
A. bank statement and debit note
B. cheque book and cashbook
C. cheque stub and deposit slip
D. payslip and credit invoice

Which of the following is the capital reserve of a company?
A. Accumulated depreciation
B. Retained profit
C. Share premium
D. Loss on forfeited shares

The effect of overstating revenue expenditure in the profit and loss account is that the
A. opening stock will be increased
B. net profit will be understand
C. net profit will be overstead
D. opening stock will be decreased

Which of the following condition would attract credit and debit notes to be used?
A. When goods are received from supplier
B. When a trial balance is extracted
C. When a buyer is under or over charged
D. When goods are sold to a buyer

Given: #
Drawings 3,500
Net loss 2,500
Capital 1.1,2007 35,000
Additional capital 10,000
The adjusted capital as at 31 : 12 : 2007 is
A. #45,000
B. #39, 000
C. #35,000
D. #46,000

A receipt is an evidence of
A. payments
B. stocking
C. delivery
D. discounts

Turaki Youth Club Income and Expenditure for the year ended 31/12/04

# #
Bal.b/d 390 Expenses on cleaning 300
Sales of - New tool 510
trickets 4,000 Repairs 400
Donations 3,000 Electricity 350
Subscription 6,500
What is the total income for the period?
A. #10,500
B. #13,500
C. #13,890
D. #9,500

An organization which has records of only personal accounts is said to be operating on the basis of
A. single entry
B. real accounts
C. nominal accounts
D. double entry

A proprietor started business with #13,000. Assets and liabilities at the end of the year; fixed assets #8,800, stock #, 600, debtors #1,000, cash #3, 000 and creditors #1,000. Determine the profit for the year?
A. #2,400
B. #3,000
C. #9,800
D. #1,400

Badge Plc issued 450,000 ordeinary shares of 50k each at #1.50 per share
Application and allotment 45k
1st call 50k
2nd call 55k

Determine the amount received on final call.
A. #225,000
B. #236,250
C. #247,500
D. #202,500

When goods are sent to the branch at cost plus mark-up, it means that the branch should sell at
A. a price above or below the stipulated price
B. any price but not below the transfer price
C. cost price
D. a price that is equal to the mark-up

The income and expenditure account differs from receipts and payments account because it
A. accounts for notional charges
B. records transactions that relate to the period on cash basis
C. records transactions that relate to the period on accrual basis
D. accounts for balance of cash at bank

The major sources of revenue for the state and local governments is
A. value added tax
B. statutory allocation
C. taxes and levies
D. recurrent revenue

1. The amount of the imprest is the same from one organization to another.

2. At the end of a fixed period, the petty cashier received a fixed sum of money.

3. At the end of a period, the petty cashier is reimbursed with the amount spent in that period.

4. The system is a method by which a measure of control is kept on petty cash expenses.

Which of the following is correct about the imprest system?
A. II and IV
B. I, III and IV
C. I, II and III
D. III and IV

When the fixed capital method is used, the partners' share of profits and remunerations are credited to the
A. current account
B. profit and loss account
C. profit and loss appropriation account
D. capital account

A discount that is allowed to encourage a debtor to pay off his debt within a period is the
A. annual discount
B. trade discount
C. periodic discount
D. cash discount

The costs of acquiring fixed assets and bringing them into the firm is a
A. general expenses
B. recurrent expenditure
C. revenue expenditure
D. capital expenditure

Impersonal account is subdivided into
A. real and nominal accounts
B. nominal and personal accounts
C. real and current accounts
D. personal and real accounts

Opening balance of Dikscompany was #12,202, closing balance #15,300, total cash received during the period #40,000. What wasthe amount of cash paid during the same period?
A. #36,902
B. #27,502
C. #12,498
D. #43,098

The total cash and cheques received from customers in a control account is derived from the
A. income and expenditure account
B. cashbook
C. purchases day book
D. sales journal

Which of the foloowing is a credit item in creditors ledger control account?
A. Returns outwards
B. Discount Received
C. Bad debts
D. Purchases

The trader is capital in a single entry system is ascertained by preparing
A. gross profit
B. statement of affairs
C. suspense account
D. appropriation account

I. Members subscription
II. Fines from members
III. Donation
IV. Loan from bank

From the informaation above, sources of income for a Not-for-profit-making organization include
D. I and IV

Clifford pays rent of #200 per month for premises He paid #2,800 within the year. Computer the prepayment.
A. #300
B. #400
C. #600
D. #200

Purchases can be ascertained through the preparation of a
A. stock account
B. sales account
C. total debtors control account
D. total creditors control account

When stock is withdrawn for personal use, the accounting entries is to debit
A. stock account credit drawings
B. drawing account, credit stock account
C. personal account credit cash account
D. cash account, credit personal account

Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled #800,000. A provision for bad and doubtful debts.
Find the amount for sundry debtors after provision.
A. #744,800
B. #760,000
C. #784,000
D. #744,000

Which of the following is accounted for in receipts and payments account?
A. Accrued expenses on annual dances
B. Subscriptions due but not yet received
C. interest on bank deposit
D. Depreciation of the club house

When the purchase consideration is lower ttan the net asset, the buyer has gained the advantage of
A. capital reserve
B. revenue reserve
C. net income
D. net loss

An increase in government expenditure within a year is taken care of by means of
A. virement
B. financial regulations
C. supplementary estimate
D. warrant

A business organization prepares departmental account in order to
A. asertian the contribution of each department to the organization
B. ascertain interdepartmental transfer
C. build other branches
D. know the number of departments in the organization

The objective of departmental account is to
A. ascertain the amount of profits or losses for the enterprise
B. ascertain the amount of profits or losses for each department
C. ascertain the cost of running the organization
D. offset the loss of each department

Which of the following expenses relate to the profit and loss account of a manufacturing firm?
A. Administrative overhead
B. Direct labour
C. Direct materials
D. Work-in-progress

The difference between book keeping and accounting is that while
A. book keeping interprets data, accounting records it
B. book keeping is regarded as the language of the business accounting ascertians its strength and weakness
C. book keeping records data accounting interprets it
D. book keeping summaries information accounting communicatesit

Alaka who owed Saka N15,000, settled his debt after deducting cash discount of 10%. To record the discount in the book of Saka, debit
A. Saka's account and credit discount received account
B. Alaka's account and credit discount received account
C. Discount received account and credit Alaka's account
D. Discount allowed account and credit Alaka's account

If the scrap value is now N15,000. What will be the yearly depreciation using the straight line method.?
A. N11,000
B. N7,000
C. N4,000
D. N24,000

The yearly depreciation using the straight line method would be?
A. N5,200
B. N6,500
C. N8,800
D. N4,400

What is the total sales for the period?
A. N37,000
B. N36,000
C. N35,000
D. N40,500

What is the total purchase for the period?
A. N30,200
B. N30,000
C. N25,000
D. N31,200

A Major funtion of commerce is to
A. facilitiate human satisfaction through exchange
B. eliminate trade barriers
C. provide raw materials for manufacturers
D. influence government policies

A company's expenditure on raw materials is termed as_______?
A. Prime cost
B. Explicit cost
C. Average cost
D. Implicit cost

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