Q1 ________ is computed by subtracting the cost of goods sold from sales revenue
Q2 ________ discount is the amount allowed off normal selling price at the time goods are being sold to encourage the customer to buy the goods
Q3 _________ entry is an entry that is used to describe the movement of cash between the office and the bank
Q4 The cash book could be the main cash book and the ________
Q5 _________ helps to decongest the ledger
Profit and loss account
Q6 A ________ is a type of day book, recording transactions where the balance will be included in the trial balance.
Q7 The following procedure can be adopted when a trial balance fails to agree, except __________
Recast the trial balance
Check that no ledger account has been omitted from the trial balance
Ensure that the trial balance contains the profit figure
Check that each amount entered in the trial balance is on the correct side
Q8 The trail balance does not form part of the double-entry process but is just a ________ that is used to check that the ledger accounts balance
Q9 __________ does not form part of the double entry process.
Statement of Financial position
Q10 _________ is a list of the balances in the general ledger at the end of an accounting period.
Q11 In a ledger, where the debit total is greater than the credit total, we can say that the account has a _________
Q12 If a business pays for cash electricity, debit electricity account and credit __________
Q13 Gbenga pays N2,700 as amount owing by cheque. Accounting entry is ____________
dr creditors’ account & cheque account
dr cheque account & cr owing’s account
dr payment account & cr creditor’s account
dr bank account & cr Gbenga’s account
Q14 Ahmed bought a van for N6,800, so we
dr bought account & cr cheque account
dr van account & cr cheque account
dr van account & cr bank account
dr van account & cr property account
Q15 To increase a liability/capital account, we _________ the capital account
Q16 The purchase returns account is a _________
Q17 To increase an asset, we _______ the asset account
Q18 Recording transactions in the books of an entity is ____________
Q19 Financial accounting involves providing useful information in the financial statements to users to enable them make ________ decisions
Q20 Trade receivables are ____________
Q21 ________ auditors are trained in detecting, investigating and deterring fraud and white-collar crime
Q22 External auditors can be referred to as being ________
Q23 An appointed or statutory auditor is expected to examine the financial statement of an enterprise and also express a _______ opinion on them
Q24 Auditing is a systematic process of _________ obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.
Q25 _________ is the grouping of costs relating to a particular activity in an activity-based costing system.
Q26 ____________ are factors influencing the level of cost
Q27 __________ is the assignment of a whole item of cost, or of revenue, to a single cost unit, centre, account or time period.
Q28 ________ are the remuneration paid to production workers for work directly related to production
Q29 ______ are raw materials used in a production.
Q30 _______ are those costs which can be directly identified with a job, batch, product or service
Q31 _______ is a unit of product or service in relation to which costs are ascertained.
Q32 A ______ is any item, process or activity for which a separate measurement of cost is required.
Q33 Information regarding the financial aspects of performance is provided by the ______ accounting
Q34 ______ are ratios that are useful in determining the ability of an enterprise to meet its short-term maturing obligations.
Net asset ratios
Q35 The three elements of indirect costs: indirect materials, indirect labour and indirect expenses are collectively known as ______
Q36 All material, labour and expense costs which cannot be identified as direct costs are termed ______
Q37 Direct material + direct labour + direct expenses = ________
Q38 _________ is a production or service location, function, activity or item of equipment for which costs are accumulated.
Q39 _________ is the term used to describe the costs of converting purchased materials into finished or semi-finished products.
Q40 Total cost =
Direct cost + Turnaround cost
Indirect cost + Flexible cost
Prime cost + overhead
Overhead cost + Interim cost
Q41 _________ is the relationship between two or more financial or statistical data in a financial statement.
Q42 _________ capital indicates the financial well being of a business enterprise
Q43 _______ are payables in respect of services received that have not been paid for at the end of the accounting period
Q44 A low ______ ratio is an indication that the business may be unable to meet up with its future obligations
Q45 _______ are ratios used in judging the ability of an enterprise to meet its short term financial and maturing obligations
Q46 Trade receivables can also be reffered to as ____
Q47 The accounting entry for increase in provision for bad debt include_________
Debit provision for bad debt account and credit debtors account
Debit bad debt account and credit debtor’s account
Debit Profit or loss account and credit Provision for bad debt account
Debit bad debts account and credit profit or loss account
Q48 In using the different methods of depreciation, the following information is required except _______
number of useful lives
Q49 _______ through technological change refers to the situation where a new model of the asset is significantly more efficient or performs additional functions
Wear and tear
Loss of techniques
Q50 ________ is that part of the cost of non-current asset which is used up during an accounting period.
Q51 __________ is the number of years in which an asset will generate revenue from its usage
Q52 ________ is the value of an asset at the time of its disposal.
Q53 The __________is the most important criterion for determining an asset
ability to generate future economic benefit
ability to control
ability to identify
ability to measure
Q54 Financial statement comprise of the statement of financial position or the _________
statement of cash and its equivalent
Statement of profit or loss
Q55 Advertising expenditure are ________ cost.
Selling and distribution
Q56 _________ refers to the value of the assets shown in the statement of financial position.
Q57 _________ are purchased for the purpose of the production or distribution of goods to be sold by the business
Q58 The cashflow statement is prepared with the following objectives in view except _______
to determine the profit of the entity
to enable users to determine the future cash flow of an entity and compare same with those of other entities
to evaluate an entity’s ability to generate cash and cash equivalent
to evaluate an entity’s financial structure
Q59 In the cash flow statement ______ relates to the acquisition and disposal of fixed assets
Q60 The following are the various classifications of cashflow except ________
Q61 The preparation of financial statements are guided by basic assumptions known as ______
General accounting procedures
Q62 _________ is expressed as a percentage reduction of the recommended retail price of the goods, and is deducted in arriving at the amount the buyer is charged for the goods.
Q63 __________ transaction is one where payment is made or received some time after delivery
Q64 __________ typically includes the cost of purchasing a non-current asset.
Q65 ________ is the main book of account in which all transactions are recorded.
Q66 ________ concept purports that every transaction has two aspects: one represented by an asset and the other a liability, or two changes in either the assets or the liabilities.
Q67 ________ = Owners’ capital + Liabilities
Q68 ________ can be defined as a legal obligation to transfer assets or provide services to another entity that arises from some past transaction or event
Q69 ________ can be defined as a tangible or intangible resource that is owned or controlled by an accounting entity, and which is expected to generate future economic benefits.
Q70 The _______ concept allows a user to assume that all the transactions in an entity�??s financial statements reflect the actual cost price billed, or revenue charged, for items.
net realizable value
Q71 _________ discount is given by one trader to another
Q72 __________ concept assumes that only material items should be disclosed in financial statements.
Q73 The _______ refers to the assumption that when measuring profit, costs should be set against the revenue that they generate at the time when they arise.
Q74 _______ is the amount for which an asset could be exchanged, or a liability settled between informed and willing parties in an arm’s length transaction
Arm’s length value
Q75 Expenses paid for in advance (e.g. rent, insurance, electricity, maintenance) are referred to as ___________
Q76 ________ are amounts set aside for liabilities or reductions in the valuation of assets.
Q77 The implication of the going concern assumption is that assets are valued at their _________, not their scrap value.
net realisable value
Q78 The fundamental concepts in Accounting are _________ & __________
Capital & Recurrent
going concern & accrual
historical cost & Prudency
continuity & matching
Q79 _________ transaction is one in which goods or services are paid for in cash or by cheque when they are received or delivered.
Q80 _________ takes place where the preparers of financial statements use accounting treatments to alter the reports on performance of the reporting entity.