ACC102 Multiple Choice Questions (MCQs)
The most liquid asset in the statement of financial position is ______
Answer: Stocks
Items of stocks taken by the proprietor for personal use is deducted as _______ in the Statement of Financial position
Answer: Consumption
An unpresented cheque for a period of six months and above is regarded as _________
Answer: Stale cheque
What is the double entry for goods purchased with cash?
Answer: Debit Cash A/c and Credit purchases A/c
The common name given to Statement of profit or loss and other comprehensive income and the Statement of Financial position is _______
Answer: Assets account
Carriage outward is shown as an expense_______
Answer: Trial balance
Accounts receivables is classified as ________
Answer: Intangible asset
Purchases returns book records goods returned to _________
Answer: Dealer
A provision for doubtful debts is _______ from the receivables in the statement of financial position.
Answer: Deducted
The transfer of goods and services from a seller to a buyer without immediate payment by the buyer is _______
Answer: Purchases
The sum of prime cost and production overheads is known as ______
Answer: Production cost
The total of sales day book is transfer to _______ side of sales a/c
Answer: Purchases
Carriage inward is __________ Purchases in the statement of profit or loss.
Answer: Deducted from
The assumption that a business will continue to operate for an indefinite period of time is based on_________ concept
Answer: Current liabilities
The double entry principle states that every transaction must be recorded _____ in different accounts.
Answer: Twice
Under inventory valuation, the method which the goods sold are said to have come from the last lot of goods received is called________
Answer: First in First out
A document showing details of goods sold and the prices of those goods is called_________
Answer: Cheque book
An allowance designed to induce customers to settle their accounts promptly is called_____________
Answer: Interest paid
The concept that distinguishes income, costs, assets and liabilities of a business from that of the owner is the________
Answer: Money measurement concept
Income received in arrears is stated under_______________ in the statement of financial position.
Answer: Current assets
A document used when goods are returned by buyers or refunds made to them when they are overcharged is called ________________
Answer: Liability report
An asset that is neither current assets nor non-current assets and not intangible assets is called ______________________________
Answer: Intangible asset
If closing inventory is over – stated, the gross profit will be _________
Answer: Will remain the same
The assets of Osiguba Enterprises are worth N1,040,125, capital is N500,000 and liabilities are _________
Answer: N605,896
The difference between current assets and current liabilities is called_____
Answer: Reserve
A document sent to a supplier showing allowances to be obtained for unsatisfactory goods called ________________
Answer: Control Note
Ledger can be classified mainly into________________________ ledgers
Answer: Real and intangible
The brief explanation made for every entry in the journal without which the origin of and reason for the entry might not be readily apparent is known technically as___________
Answer: Note
A Cash Book that has columns for Discounts, Cash and Bank is referred to as a_________
Answer: Two column cash book
Under IFRS Balance sheet is called__________
Answer: Statement of financial position
Another name for the general ledger is___________________
Answer: Private ledger
Debtors accounts are contained in ______________
Answer: Sales ledger
What is the full meaning of the acronym, IFRS in relation to accounting_
Answer: Income Financial Receipts Standards
What is the meaning of CVP analysis?
Answer: Cost, Volume, Price analysis
The process of adding up all the respective debit and credit entries by a book-keeper and deducting one total from the other to arrive at the net balance is referred to as __________.
Answer: Opening and closing accounts
