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MCQ22: When cash is withdrawn from the bank to the office ________________ Answer: Credit – The bank column.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