A company’s income statement for the year ended December 31, 2013 showed a net profit of N6,500,000. It was later found that N1,800,000 paid for maintenance of motor vehicles had been debited to the motor vehicles at cost and had been depreciated as if it was a new motor vehicle. If it is the company’s policy to depreciate motor vehicles at 25% per year on straight line basis with a full year charge in the year of acquisition, what would be the net profit after adjusting for this error?
Question MCQ2 : A business has opening payables of Le 75,000 and closing payables of Le 65,000 and received a discount of Le 3,000. Cash paid to suppliers was Le 65,000. What is the figure for purchases?
Answer: Le 58,000
Question MCQ3 : Given a selling price of a product at N175,000 and a gross profit mark-up of 40%. Calculate the cost price
Question MCQ4 : The method of depreciation selected should be the ONE most appropriate to the type of asset and its use in the business. The principal methods used include the following EXCEPT
Answer: Different cost method
Question MCQ5 : Given that inventory at start is N400,000, inventory at close is N600,000, Purchases is N12,000,000, Turnover is N15,000,000. Determine the cost of goods sold
Question MCQ6 : Given that inventory at start is N400,000, inventory at close is 600,000, Purchases is N12,000,000, Turnover is N15,000,000.The value of goods available for sale is
Question MCQ7 : Given that inventory at start is N400,000, inventory at close is 600,000, Purchases is N12,000,000, Turnover is N15,000,000.The gross profit is
Question MCQ8 : Which of the following is NOT an element of financial statement?
Question MCQ9 : The following form part of the financial statements EXCEPT
Answer: Directors‟ Report
Question MCQ10 : Flamingo bought a tractor for his farm at a cost of GH¢2,000,000 and debited the amount to Farm Appliances Expenses Account and credited the bank account. Flamingo had committed an error of
Question MCQ11 : The Microsoft Office Application include the following EXCEPT
Question MCQ12 : The original cost of an equipment was L$150,000. It was revalued upwards to L$200,000 two years ago. The value has now fallen to L$130,000. The decrease in value of the equipment will amount to
Question MCQ13 : Which of the following is NOT an example of Financial Liability in the Statement of Financial Position?
Answer: Trade receivables
Question MCQ14 : Which of the following would result from an increase in the provision for doubtful debts?
Answer: A decrease in net profit
Question MCQ15 : Which of the following would result from an increase in the provision for doubtful debts?
Answer: A decrease in gross profit
Question MCQ16 : Which of the following is a Long-term liability?
Answer: Short-term Payables
Question MCQ17 : The Microsoft Office Application used for calculations is called
Question MCQ18 : Given that account receivable at start is N205,000, account receivable at close is N320,000, provision for doubtful debt b/f is N30,750, Sales is N1,318,600. Provision for doubtful debts is to be 15% of receivable. What is the amount to be provided for debt for the year?
Question MCQ19 : Given that account receivable at start is N205,000, account receivable at close is N320,000, provision for doubtful debt b/f is N30,750, Sales is N1,318,600. Provision for doubtful debts is to be 15% of receivable. If 50% of sales were on credit how much was collected from debtors during the year
Question MCQ20 : Margaret bought an electronic typewriter costing Le61,000 on credit from Unicom Technical. The transaction was not posted in the books. The error committed is an error of....................
Question MCQ21 : The Concept which supports the division of a company‟s continuous life into measurable time sessions for which financial statements are prepared is called
Question MCQ22 : Which of the following is NOT classified as a selling, general and administration expense?
Question MCQ23 : The summation of all depreciation already charged on a non-current asset is
Answer: Accumulated depreciation
Question MCQ24 : If the cost price of an article is N120,000 and selling price N150,000. Which of the following will be correct?
Answer: Margin is 20%
Question MCQ25 : If total receivables at the end of a company’s financial year is GH¢10 million and provision for bad and doubtful debt is 10%. How much bad debt provision is charged to Income in the year?
Question MCQ26 : Which of the following errors will NOT affect the agreement of the trial balance?
Answer: Opening balance has not been brought down
Question MCQ27 : Which of the following accounts must be cleared in the Trial Balance before final accounts can be prepared?
Answer: Bad debt provision
Question MCQ28 : Which of the following balances in the Statement of financial position will be affected if bad and doubtful debt provision is increased?
Answer: Trade receivables
Question MCQ29 : Which of the following documents is checked against a waybill to ensure that goods ordered were the ones supplied?
Answer: Purchase Order
Question MCQ30 : Accounting is concerned with the following purposes EXCEPT
Answer: Having the record of accounting firms operating in the country
Question MCQ31 : A document sent by a supplier to a customer in respect of goods returned or over payments made by the customer is called:
Answer: Credit Note
Question MCQ32 : State the book of prime entry in which you would record the following transaction: An invoice for N650,000 was sent to Alhaji WAZOBIA (a customer)
Answer: Sales Day Book
Question MCQ33 : Given that Furniture and fitting costs N15,000, account receivable is N17,000, bank account is N11,000, Loan payable is N13,000, What is the capital at start?
Question MCQ34 : Branches of accounting include all these EXCEPT:
Answer: Financial Management
Question MCQ35 : ALL of the following are regular users of general purpose Financial Statement EXCEPT
Question MCQ36 : The accounting concept that states that income should be recognised when they are earned and not when they are received is the
Answer: Accrual Concept
Question MCQ37 : The document that serves as evidence of payment to creditors, through the bank and withdrawals made for office use is
Answer: Cheque Counterfoils
Question MCQ38 : Which of the following is NOT an example of a real account?
Answer: Salaries and wages
Question MCQ39 : Why should financial statements be prepared on a consistent basis?
Answer: To make it easier to compare results from one year to the next.
Question MCQ40 : Which of the following is NOT a reason for depreciating non-current assets?
Question MCQ41 : The term “accrued rent expense” means
Answer: Rent due but unpaid
Question MCQ42 : Which of these errors arise when ONE or more errors are cancelled out by ONE or more errors elsewhere?
Answer: Compensating error
Question MCQ43 : In preparing a company’s bank reconciliation statement at month end, which of the following items is adjusted in the cash book?
Answer: Direct debits
Question MCQ44 : Which of the following is NOT a cause of Depreciation of a Motor Vehicle?
Answer: Scrap value
Question MCQ45 : The sales of Le 1,525 to Mr. D. Nonko was wrongly posted into Sales ledger as Le1,552. This type of error is known as
Answer: Error of original entry
Question MCQ46 : The Net Book value of a Property Plant & Equipment is N1,750,000 while the Accumulated Depreciation on the Property Plant & Equipment to date is N1,050,000.Assuming there are no additions to and disposal of the Fixed Asset, the cost of the Property Plant & Equipment is
Question MCQ47 : Assets, with a life-span of more than one year, within the business on an ongoing basis, in order to generate revenue are called
Answer: Non-Current Assets
Question MCQ48 : Which is odd among the following?
Answer: Stability concept
Question MCQ49 : The sales value of goods sold on 2nd January 2011 was N250,000. The gross margine on sales was 25%. What is the value of stock sold on December 31st 2011
Question MCQ50 : Narration as used in accounting entries is commonly found in
Answer: Journal proper