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ACC204
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1. An error which occurs when an entry is made to the wrong account of a different class, a norminal account is debited to a real account is an error of:
—>> Principle
Compensation
Ommission
Original Entry
2. One of the following items is not of revenue expenditure.
—>> Incidental freight
Wages
Repairs
Discount allowed
3. One of these is not an item of current liabilities:
Account payable
Income in advance
—>> Prepaid Insurance
Overdraft
4. A situation in which the last batches of goods are considered to be sold first prior to earlier purchase is said to be….
Inventory method
Average method
FIFO method
—>> LIFO method
5. The amount which an entity owes its supplies and others in the course of its business activities, such liabilities are usually expected to be paid within one accounting year is known as…
Accont receivable
Cash received in advance
Accruals expenses
—>> Accounts payable
6. The type of loan with a fixed rate interest and long-term maturity date and it is usually traded on the stock market is….
—>> Debenture
Mortgage loan
Longterm loan
Convertible debt
7. A trial balance is a proof of accuracy of:
Transaction
Financial accounts
Trading
—>> Double entry in the ledgers
8. If a motor van was acquired for N55,000 with an estimated useful life of 5years and the residual value of N5000, using the straight line method of depreciation, what is the annual depreciation charge will be?
N8,000
—>> N10,000
N15,000
N5,000
9. The accounting entries for assets withdrawn from business for private use in case of cash are….
—>> Dr drawings account and Cr cash account
Dr cash account and Cr drawings account
Dr cash account and Dr drawings account
Cr drawings account and Cr cash account
10. Using the residual balance method of depreciation, if a motor vehicle that cost N17,150 has a useful life of 5years and a residual value of N500, calculate the annual depreciation rate;
O.42
0.21
0.72
—>> 0.51