ACC407
1. John cooperatives society purchased a motor vehicle on credit at a cost of N3million from Ndupe motors on 31 oct, 2000. The journal entry to record this transaction will appear as follows:
Dr motor vehicles account and Dr Ndupe account
Dr Ndupe account and Cr motor vehicle account
Cr motor vehicle account amd Cr Ndupe account
Dr John cooperatives society limited account and Cr N3million account
2. Sales day book or sales journal is used for recording
Payment of money
Credit purchases
Credit sales
Return from customers
3. The accounting concept which suggests that all accounts in respect of the business entries should be kept distinct from persons who own or manage them is known as
The cost concept
The business entity concept
The going concern
The realization concept
4. Profit and loss account is prepared to determine.
Gross profit
Net profit
Cost of goods available for sale
Sales return
5. One of the following is referred to as the direct users of accounting information:
Tax authorities
Creditors
Shareholders
Employees
6. The bank column in the cash book shows a credit balance of N180, this means.
A total payment of N180
A gross receipt of N180
An overdraft of N180
A left over of N180
7. Managers use accounting information to:
Assess the viability of the business and make future decisions
Known whether the business is doing well or not
Provides information to the public
Known the worth of the business
8. One of the following is a source document:
Bank tellers
Creditors book
Sales book
Primary and secondary source document
9. Accounting can be referred to as a management science because:
It applies methods of observation in processing financial information
It is a tool of management for planning and control
It stresses the human attributes of imagination and judgement
It provides financial informations for outsiders
10. One of the following is not a specific objective of book-keeping:
Assist in preparetion of profit and loss account
Detection of fraud and irregularities
Ensure arithmetic accuracy of financial records
Provides a basis for taxation
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