Nyansapɔ wisdom knot — symbol of wisdom, ingenuity, and patience

Financial Accounting2004

WASSCE · 54 questions · Answers included

54 questions

1

The sales day Book is used to record

2

The principle entry book-keeping states that every

3

Which of the following is used to record the purchase of fixed asset on credit?

4

Which of the following is both a subsidiary book and a ledger?

5

Rent receivable account is an example of

6

Which of the following is not a source document?

7

Pending the location of an error, the difference disclosed in a trial balance is temporarily treated in

8

Which of the following items is not shown in the Trial Balance

9

The total of the purchases day book is posted to the purchases account in the

10

Use the following information to answer the question \(\begin{array}{c|c} \text{prepared} & \text{1/01/2003} & N600.00\\ \text{Rent paid} & \text{31/12/2003} & N3,000.00\\ \text{Rent prepaid} & \text{31/12/2003} & N400.00\end{array}\) Rent for 2013 amounted to

11

Use the following information to answer the question \(\begin{array}{c|c} \text{Unpresented cheques} & N85,305 \\ \text{Balance as per bank statement} & N206,865 \\ \text{Balance as per cash book} & N144,495\end{array}\) Uncredited cheques amount to

12

Which of the following terms describes the provision made for the loss in the value of an asset that has a legal life span?

13

The amount set aside out of profit for a specific purpose is

14

Which of the following is correct about cost of goods sold?

15

Net debtors is

16

The balance on the sales ledger control Account at the end if the accounting year represents total

17

a decrease in the provision for doubtful debts result in

18

The accounting concept which allows the use of a particular method for treating a transaction for a reasonable number of years is

19

Use the following to answer the given question \( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \text{Sales} & 3,850\end{array}\) Gross profit is

20

Use the following to answer the given question \( \begin{array}{c|c} \text{Purchases} & 2,000\\ \text{Opening stock} & 900\\ \text{Closing stock} & 300 \\ \text{Sales} & 3,850\end{array}\) The cost of goods available is

21

Which of the following is not a debit item in the partnership profit and loss appropriation account?

22

Which of the following is not correct?

23

When discount is allowed, the accounting entry is debit Discount allowed and credit

24

When partners maintain fixed capital accounts, the correct entries for a partner's share of profit is

25

Goodwill is taken into account in partnership when

26

The excess of current assets over current liabilities is

27

A class of preference shares in which dividend rights are carried forward is

28

The class of shareholders who are paid last in the event of wedding-up are

29

When both debit and credit entries in respect of a transaction are made in the same ledger account, this is

30

Use the following information to answer the given question \(\begin{array}{c|c} & N\\ \text{Stock of raw materials - 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials - 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor's salary} & 15,000\end{array}\) Total overhead cost is

31

Use the following information to answer the given question \(\begin{array}{c|c} & N\\ \text{Stock of raw materials - 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials - 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor's salary} & 15,000\end{array}\) The prime cost is

32

Use the following information to answer the given question \(\begin{array}{c|c} & N\\ \text{Stock of raw materials - 1st January, 2002} & 460,000\\ \text{Purchases of raw materials} & 1,000,000\\ \text{Carriage inwards} & 100,000 \\ \text{Stock of raw materials - 31st December, 2002} & 500,000\\ \text{Royal paid} & 35,000 \\ \text{Manufacturing wages} & 80,000\\ \text{Supervisor's salary} & 15,000\end{array}\) Cost of raw materials used is

33

The price paid by an acquiring company is

34

A unit of company's capital which can be bought is

35

Use the information to answer the given question. RECEIPTS AND PAYMENTS ACCOUNT: \(\begin{array}{c|c} & & N & & N \\ \hline \text{Balance - 1st January} & 2002 & 200 & \text{Bar supplies}& 2,850\\ \text{subscriptions received:} & & & \text{wages} & 350\\ & 2002 & 3,600 & \text{General expenses} & 400 \\ & 2003 & 250 & \text{Printing expenses} & 120 \\ \text{Receipts from Bar} & & 4,500 & \text{Equipment} & 200 \\ \text{receipts from dance} & & 500 & \text{Repairs} & 200 \\ \text{Sundry receipts} & & 400 & \text{Balance - 31st December} & 4,880 \\ & & \overline{9,450} & & \end{array}\) ADDITIONAL INFORMATION: \(\begin{array}{c|c} & \text{1/01/02} & \text{31/12/12} \\ & N & N \\ \hline \text{Equipment} & 4,500 & 5,150\\ \text{Stock - Bar} & 1,200 & 3,200 \\ \text{Bar supplies} & 2,400 & 5,600\end{array}\) Accumulated fund as at 1st January 2002 is

36

Use the information to answer the given question. RECEIPTS AND PAYMENTS ACCOUNT: \(\begin{array}{c|c} & & N & & N \\ \hline \text{Balance - 1st January} & 2002 & 200 & \text{Bar supplies}& 2,850\\ \text{subscriptions received:} & & & \text{wages} & 350\\ & 2002 & 3,600 & \text{General expenses} & 400 \\ & 2003 & 250 & \text{Printing expenses} & 120 \\ \text{Receipts from Bar} & & 4,500 & \text{Equipment} & 200 \\ \text{receipts from dance} & & 500 & \text{Repairs} & 200 \\ \text{Sundry receipts} & & 400 & \text{Balance - 31st December} & 4,880 \\ & & \overline{9,450} & & \end{array}\) ADDITIONAL INFORMATION: \(\begin{array}{c|c} & \text{1/01/02} & \text{31/12/12} \\ & N & N \\ \hline \text{Equipment} & 4,500 & 5,150\\ \text{Stock - Bar} & 1,200 & 3,200 \\ \text{Bar supplies} & 2,400 & 5,600\end{array}\) Gross profit from Bar trading is

37

Use the information to answer the given question. RECEIPTS AND PAYMENTS ACCOUNT: \(\begin{array}{c|c} & & N & & N \\ \hline \text{Balance - 1st January} & 2002 & 200 & \text{Bar supplies}& 2,850\\ \text{subscriptions received:} & & & \text{wages} & 350\\ & 2002 & 3,600 & \text{General expenses} & 400 \\ & 2003 & 250 & \text{Printing expenses} & 120 \\ \text{Receipts from Bar} & & 4,500 & \text{Equipment} & 200 \\ \text{receipts from dance} & & 500 & \text{Repairs} & 200 \\ \text{Sundry receipts} & & 400 & \text{Balance - 31st December} & 4,880 \\ & & \overline{9,450} & & \end{array}\) ADDITIONAL INFORMATION: \(\begin{array}{c|c} & \text{1/01/02} & \text{31/12/12} \\ & N & N \\ \hline \text{Equipment} & 4,500 & 5,150\\ \text{Stock - Bar} & 1,200 & 3,200 \\ \text{Bar supplies} & 2,400 & 5,600\end{array}\) Amount owing to Bar creditors is

38

An expense is said to be revenue in nature if it

39

Which of the following is the basis of accounting in public service?

40

The amount of money granted by government to public institutions to meet recurrent expenditure during a fiscal year is

41

A business operates on a mark-up of 25%. If cost of goods sold is N800,000. What is the profit?

42

Rent prepaid as at 1st January, 2002 was N15,000. How much was paid for rent in 2007?

43

Which of the following is not correct? \(\begin{array}{c|c} Assets & Liabilities & Capital\\ N & N & N \\ \hline \text{A. 95,550} 11,500 & 82,000 \\ \text{B. 82,000} & 28,000 & 54,000\\ \text{C. 78,500} & 12,500 & 66,000\\ \text{D. 65,400} & 11,200 & 54,200\end{array}\)

44

Use the following information to answer the given question, \(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight and installation cost} & 10,000 \\ \text{Annual maintenance cost} & 1,000\\ \text{Estimated useful life - 5 years} & \\ \text{Estimated scrap value} & 2000 \end{array}\) What is the total acquisition cost of the equipment?

45

Use the following information to answer the given question, \(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight and installation cost} & 10,000 \\ \text{Annual maintenance cost} & 1,000\\ \text{Estimated useful life - 5 years} & \\ \text{Estimated scrap value} & 2000 \end{array}\) What is the annual depreciation charge of straight line method is used?

46

Use the following information to answer the given question, \(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight and installation cost} & 10,000 \\ \text{Annual maintenance cost} & 1,000\\ \text{Estimated useful life - 5 years} & \\ \text{Estimated scrap value} & 2000 \end{array}\) Using reducing balance method at the rate of 20%. What is the depreciation charge for the second year?

47

Use the following information to answer the given question, \(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight and installation cost} & 10,000 \\ \text{Annual maintenance cost} & 1,000\\ \text{Estimated useful life - 5 years} & \\ \text{Estimated scrap value} & 2000 \end{array}\) What is the annual depreciation charge of straight line method is used?

48

A statement that measures the performance of a business over a period of time is the

49

Use the following information to answer the given question, \(\begin{array}{c|c} & N\\ \hline \text{Purchase price of equipment} & 60,000\\ \text{Freight and installation cost} & 10,000 \\ \text{Annual maintenance cost} & 1,000\\ \text{Estimated useful life - 5 years} & \\ \text{Estimated scrap value} & 2000 \end{array}\) What is the annual depreciation charge of straight line method is used?

50

Capital at start was N280,000, while at the end of the year was N485,000 and drawings during he year was N15,000. What is profit for the year?

51

Computer programmes are

52

Which of the following is not a unit of the computer?

53

The transfer of goods between departments is recorded be debiting

54

A fixed amount of money set aside for petty expenses is