ACC204 Past Questions and Answers (2)

The Unsold portion of goods held for resale are generally referred to as
Answer

a.
assets

b.
inventories xxxx

c.
stock

d.
goods in store

 

Such inventory approach that maintains records on a continuous basis whenever there is a movement the level of inventory whether through purchases or sales is called
Answer

a.
weighted average

b.
perpetual inventory valuation xxxx

c.
LIFO method

d.
FIFO method

Profit and loss account is prepared to ascertain
Answer

a.
net profit xxxxx

b.
gross loss

c.
gross profit

d.
net value

The full meaning of IFRS is
Answer

a.
Internal Financial Reporting Standard

b.
International Funds Regulatory Service

c.
International Financial Reporting Standards xxxxx

d.
Internal Financial Reporting Standard

Goods bought by an entity for the purpose of resale is refer to
Answer

a.
goods for resale

b.
purchases xxxxx

c.
sales

d.
stocks

The method that applies a simple average of the unit costs/prices to the goods sold to determine the cost of goods sold and average of the unit costs to the units of closing inventory to get the value of closing inventory is known as
Answer

a.
balancing

b.
depletion

c.
machine hour

d.
simple average xxxxx

Accounting concept that recognizes an entity to last for a long period of time is known as
Answer

a.
consistency

b.
dual concept

c.
going concern xxxx

d.
matching concept

The assumption in which the last batches of goods are considered to be sold first prior to earlier purchases is known as
Answer

a.
FIFO method

b.
Valuation

c.
LIFO xxxx

d.
straight line

When an entity withdraws more cash from its bank account more than it actually has with the bank is known as
Answer

a.
income

b.
overdraft xxxx

c.
cash withdrawal

d.
credit balance

The advantage of computerised accounting system that make it less time to process accounting information is
Answer

a.
speed xxxx

b.
accuracy

c.
reliable

d.
complete

Which among the following error can affect the balancing of the trial balance
Answer

a.
principle

b.
commission

c.
ommission

d.
casting error xxxx

Which among the following is not a cash book items
Answer

a.
cash

b.
sales

c.
Suspense xxxx

d.
drawings

Accounting software are “computer programs that assist bookkeepers and accountants in recording and reporting on a firms financial transactions. Whose idea is this
Answer

a.
IASB

b.
IFRS

c.
ANAN

d.
investopedia xxxx

 

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