ACC203 e-exam (2019)

FBQ1: The beginning of accounting was _______
Answer: Stewardship

FBQ2: In accounting permanent records should be created whereby both the ______and the owner can have access to present and past events. 
Answer: Steward

FBQ3: The owner of the business is referred to as an  ____
Answer: entrepreneur

FBQ4: The earliest known originator of book keeping system was ................
Answer: Rev. Father Lucas Pacioli

FBQ5: Accounting consists of the process in designing and operating an efficient accounting information system for collection, recording, measuring, summarising, analysing and __________the results of financial transactions for a particular period to users of financial information for them to make informed decisions. 
Answer: Communicating

FBQ6: Accounting is a discipline involved with the recording, classification and _______of financial information for both trading and non-trading organisations.
Answer: Interpretation

FBQ7: Sales represents total of all credit and cash sales made to a ___________
Answer: Third party

FBQ8: Accounting requires the acquisition of a specialised knowledge over a given period of time which involves the combination of_________
Answer: Theory and Practice

FBQ9: Reserves are amounts set aside out of profits earned by a company and constitute part of __________fund.
Answer: Shareholders’

FBQ10: Accounting is a ________because is a means of communicating business information.
Answer: Language

FBQ11: Accounting does not have ________ products that can be bought and sold like the manufacturing companies.
Answer: Physical

FBQ12: Accounting is a _________because it follows a systematic and organised body of knowledge.
Answer: Science

FBQ13: Accounting is a ________because it is also based on some fundamental principles which are applicable worldwide. 
Answer: Management science

FBQ14: The maintenance and recording of the books of accounts in a _____manner similar to procedures in a laboratory make accounting a science. 
Answer: Systematic

FBQ15: Accounting should include enough facts and _____to satisfy the need of the users. 
Answer: Figures

FBQ16: Ability to trace all accounting transactions in a report to the source documents is important for ________to be realised.
Answer: Objectivity

FBQ17: Bank reconciliation is the process of making the balance on the bank column of a cash book to _____with the balance on the bank statement received from the bank. 
Answer: Agree

FBQ18: Accounting report should be prepared in a way that allows for quick and easy ________from one period to another. 
Answer: Comparability

FBQ19: Accounting report is _______ if it is easy to change, adjust and adaptable to suit different kinds of users. 
Answer: Flexible

FBQ20: Financial accounting is also used to determine the _________of an organisation which shows the company’s assets and liabilities at a particular date.
Answer: Financial position

FBQ21: Cost accounting helps organisation in controlling and _______their costs.
Answer: Minimising

FBQ22: Management accounting is a branch of accounting that uses different _______analysis tools to project for the future of an organisation.
Answer: Quantitative

FBQ23: Auditing is an ______examination of the books of accounts, records and financial statement of an organisation by an independent person called an auditor.
Answer: Independent

FBQ24: Without the accountants, financial statements will not make any ______to many people. 
Answer: Meaning

FBQ25: The external auditing service provided by ________is to ensure that complete and reliable financial statements are published or released to the public.  
Answer: Accountants

FBQ26: Every business organisation is expected to keep its __________accurately and in an orderly manner. 
Answer: Financial records

FBQ27: Accounting is used to ________the financial performance of an organisation
Answer: Measure

FBQ28: Accounting makes use of _______financial data in forecasting future performance and financial position of different organisations.
Answer: Historic

FBQ29: Shareholders are the _______of a company and they are interested in the performance of the company
Answer: Owners

FBQ30: The government is interested in accounting information to determine the company income tax to be paid, _______with government rules and regulations governing the operation of the business. 
Answer: Compliance

FBQ31: The concern of the suppliers is to know how stable the company is ______in order to meet their bills and invoices as at when due. 
Answer: Financially

FBQ32: The laid down rules that are complied with in the preparation of accounting records for any organisation is _______ 
Answer: Accounting concept

FBQ33: The tradition for the preparation of accounting records is __________ 
Answer: Accounting convention

FBQ34: In recording the books of accounts, the business records are kept and treated_______from the owners even in a situation where the business is owned by a person.
Answer: Share

FBQ35: In accounting revenues and expenses for any accounting period should be ________with each other so as to bring them into the accounting period to which they relate, so that the profit or loss for the period can be ascertained. 
Answer: Matched

FBQ36: The convention of prudence states that profit should not be ______when recognising profit to be recorded in financial statement, but the profit should be based on actual profit earned or realised for the particular period. 
Answer: Anticipated

FBQ37: A cheque is a _______instrument that originates from banks and it is used to withdraw money from a stated bank account in a bank.
Answer: Negotiable

FBQ38: A bank teller is used to ________money (cash and cheques) into an account in a bank.
Answer: Pay

FBQ39: Credit note is a document showing a ______in favour of the receiver. 
Answer: Claim

FBQ40: Discount can be defined as an _______given to customers to enable them buy in large quantity, obtain profit margin price
Answer: Inducement

FBQ41: Quantity discount is a price ______given to a customer who buys in large quantity for consumption and not for re-sale.
Answer: Reduction

FBQ42: Purchases day book is a subsidiary book of account used to record all goods bought and services received on _______from a third party in the order in which they occurred irrespective of the amount involved. 
Answer: Credit

FBQ43: Journal or journal proper is one of the books of original entry that is used to record any transaction which cannot be ________recorded or classified into any of the other subsidiary books. 
Answer: Conveniently

FBQ44: The cash book is a book of original entry used to record all _____transactions.
Answer: Cash

FBQ45: A contra entry is any transaction that has been recorded ______in an account through a debit and a credit entry in the same account. 
Answer: Twice

FBQ46: The double entry principle states that for every debit entry for a transaction, there must be a corresponding ________for the same transaction.
Answer: Credit entry

FBQ47: Ledger is the ______of accounts where the double entry principle is completed.
Answer: Principal book

FBQ48: Error is an accounting terminology used to signify ______made while recording and/or posting financial transactions. 
Answer: Mistakes

FBQ49: Expenditures are the money spent in an organisation in order to generate _______either now or in the future. 
Answer: Income

FBQ50: The manual accounting system refers to the keeping of accounting record by __________of relevant posting in the books of accounts.
Answer: Handwritten

MCQ1: The accounting report should be ...........enough to give the user full information with which decision could be reached.
Answer: Complete

MCQ2: Good accounting information should be ...........to the purpose for which it is prepared.
Answer: relevant

MCQ3: The owner of a business is referred to as __________  
Answer: an entrepreneur

MCQ4: Financial accounting is prepared on ___________
Answer: Historical basis

MCQ5: Financial accounting is also used to determine the ..........of an organisation 
Answer: Financial position

MCQ6: Accounting as a form of knowledge and profession consist of different branches except...................
Answer: Commerce

MCQ7: To find out the cost of goods produced or services rendered in an organisation we need...............
Answer: Cost accounting

MCQ8: The acquisition of key business information that includes income, expenditure, profit, assets and liabilities are made available from ____________ prepared by accountants. 
Answer: Financial Statement

MCQ9: In business, __________ refers to the process of allocating funds to meet the needs of your business. 
Answer: Finance

MCQ10: The sole proprietorship business  is also referred to as a __________
Answer: One-man- business

MCQ11: Which of the following is not a nature of accounting? 
Answer: Auditing

MCQ12: Utility is the satisfaction derived from consuming a particular product or accepting a service.
Answer: Economist’s point of view

MCQ13: For financial statements to make meaning to many people, one of the following must be prepared by an accountant. 
Answer: Accounting ratio

MCQ14: To investigate the adequacy of tax paid by organisations, government engages the services of.......... 
Answer: Accountant

MCQ15: To safeguard the assets of an organisation, an Accountant employs one of the following.............
Answer: Internal control system

MCQ16: The two government recognised accounting professional bodies in Nigeria are: 
Answer: Association of National Accountants of Nigeria and Institute of Chartered Accountants of Nigeria

MCQ17: One of the following is not a direct user of accounting information
Answer: Supplier

MCQ18: Business documents that confirm the occurrence of financial transaction between two or more parties are called.......
Answer:  Source documents

MCQ19: The total of goods returned to supplier from the purchases returns day book is transferred to the ............of the returns outwards account.
Answer: Credit side

MCQ20: The following except ____________ are recorded in the Journal Proper 
Answer: Recording of credit sales

MCQ21: The left side of a cash book is called_____________________
Answer: Debit side

MCQ22: When cash is withdrawn from the bank to the office ________________
Answer: Credit - The bank column.

MCQ23: Contra entry can be found in___________
Answer: Two column cash book

MCQ24: When liabilities value reduces, the liabilities account should be___________.
Answer: Debited

MCQ25: The advantages of trial balance exclude one of the following_______.
Answer: It helps in preventing errors.

MCQ26: One of the following errors does not affect the agreement of trial balance
Answer: Errors of principle

MCQ27: A debtor paid N10, 500 cash but his account was credited with N10,000 while the cash book was debited with N10,500.
Answer: Credit - Debtors Account N500

MCQ28: Motor vehicle purchases of N660,000 was entered in the purchases account. Correct the errors.
Answer: Credit -Purchases account

MCQ29: The cost of transporting goods meant for resale into the organisation is called___
Answer: Carriage Inward

MCQ30: Assets that add value to the organisation but they cannot be seen by their nature are called_________ 
Answer: Intangible assets

MCQ31: 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 is called_________
Answer: Accruals

MCQ32: Reserve which is distributed to the shareholder and other capital providers in form of debenture interest, retained profit is called ________
Answer: Revenue Reserve

MCQ33: Any transactions that will increase the customers’ indebtedness to the organisation are .........to the debtors control account 
Answer: Debited

MCQ34: A statement sent periodically usually once a month by a buyer to his suppliers is called____________
Answer: Creditor’s Statement of Account

MCQ35: The causes of the differences between the bank statement and the cash book exclude one of the following____________________
Answer: Signed cheques

MCQ36: To prepare Bank reconciliation statement start with Balance as per adjusted cash book and add_______
Answer: Unpresented cheques

MCQ37:  The accounting concept that assumes that the business will be in existence for a very long period of time without any intention to close the company later is___ 
Answer: Going Concern Concept

MCQ38: The traditions and customs adopted by accountants for the preparation of financial statements exclude one of the following
Answer: Money Measurement 

MCQ39: A document that is used to record full details of money paid for a particular purpose is called______________
Answer: Payment Voucher

MCQ40: One of the following is not a subsidiary book of account_______
Answer: Ledger account

MCQ41: Where an account of capital expenditure is treated as revenue expenditure item it is called_______________
Answer: Errors of Principle

MCQ42: Cash of N600,000 received from a debtor was recorded in the cash book only. You are to correct the error. 
Answer: Debit - Suspense Account N600,000

MCQ43: One of the following is not a branch of accounting.
Answer: Investigative accounting

MCQ44: The accounting system that recognises revenue from selling a good or service in the period which the good is sold or the service is performed is called_________
Answer: Accrual based accounting

MCQ45: The revenues that are generated outside the sales of goods or services that the firm regularly deals with are called
Answer: Discount received

MCQ46: Essential features of a business organisation exclude one of the following
Answer: The need to take risk

MCQ47: The functions of an accountant exclude one of the following.
Answer: Stock brokering

MCQ48: The professional person that reports on the true and fair view of an organisation’s financial statements is 
Answer: Auditor

MCQ49: An inducement given to debtors (credit customers) for paying their debt on time or promptly within the specified time frame or period is known as
Answer: Cash Discount

MCQ50: A book used to record goods previously sold to customers but were later returned by the buyer to the seller is known as__________
Answer: Returns Inwards Journal


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