FBQ1: The underlying purpose of accounting isto provide financial information about an economic -------- Answer: Entity FBQ2: The main statutory document for the regulation of business in Nigeria is the -------- Answer: Companies andAllied Matters Act 1990 (as amended in 2004). FBQ3: ----------- is the classification and recording of business transactions in the books of account. Answer: Book keeping FBQ4: ----------- is an accounting process that starts with bookkeeping and ends with the preparation and interpretation of financial statements. Answer: Financial Accounting FBQ5: ------------ is the collection of cost data in some organized ways by means of an accounting system. Answer: Cost accumulation FBQ6: ---------- refers to the keeping of accounting record by hand written of relevant posting in the books of accounts. Answer: Manual accounting system FBQ7: --------- is a set of numbers and codes that define each account head and also differentiate between classes of accounts. Answer: Chart of account FBQ8: ---------- enable some companies to use different accounting software for the financial records, but some organisation still prefer the manual system for one reason or the other. Answer: Computerized information systems FBQ9: A --------- is cheaper to install in terms of cost when compared with a computerized system of maintaining financial records. Answer: Manual system FBQ10: --------- is the assumption that an entity will continue in operational existence for the foreseeable future. Answer: Going Concern Concept FBQ11: ------- refers to the assumption that in the measurement of profit, costsshould be set against the revenue that they generate at the time when they arise. Answer: matching concept FBQ12: -------- 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. Answer: Historical cost FBQ13: --------- assumes that when accounting for transactions the preparer should look at the economic substance of a transaction, not its legal form. Answer: Substance Over Form Concept FBQ14: -------- 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. Answer: An asset FBQ15: ------- can be defined as a legal obligation to transfer assets or provide services to another entity that arises from some past transaction or event Answer: A liability FBQ16: ------- are amounts provided to allow for liabilities that are anticipated but not yet quantified precisely, or for reductions in asset values. Answer: Provisions FBQ17: _______expenditure will have no value at the end of the period to which it relates. Answer: Revenue FBQ18: ___________typically includes the cost of purchasing a non-current asset and the cost of improvements to a non- current asset that lead to increased revenue, or sustained revenue. Answer: Capital expenditure FBQ19: . _____________ is a reduction in the amount that the customer has to pay, provided payment is made within a given period stipulated by the seller at the time of sale. Answer: Cash discount FBQ20: -------- is sent by the seller if the buyer has been undercharged on the invoice. It has basically the same layout and information as the invoice except that instead of details of the goods, it shows details of the undercharge. Answer: Debit note FBQ21: ---------- is used to record the purchase on credit of goods for resale. Answer: Purchase Day Book FBQ22: -------- are generally referred to as the unsold portion of goods held for resale. Answer: Inventories FBQ23: The assumption that the last batches of goods are considered to be sold first prior to earlier purchases is known as Answer: LIFO FBQ24: ----------- uses a predetermined rate set by the entity’s management for the purpose of calculating the cost of sales and inventory. Answer: Standard Cost FBQ25: --------- is a list of ledger account balances within a ledger, at a particular instance. Answer: Trial balance FBQ26: Error of ----------- occurs when a transaction is recorded with the wrong amount at the beginning of the recording process. Answer: Error of original entry FBQ27: ---------- are ownership interests a company has in another organisation. Answer: Investments FBQ28: ------- are financial obligations against the company that are not due for repayment within one year. Answer: Treasury bills FBQ29: ---------- are non-distributable reserves that are retained to comply with certain laws or for accounting requirement. Answer: Capital Reserves FBQ30: --------- is a summary of customers or suppliers ledger in total. Answer: Control account FBQ31: ---------- are payments made directly by the bank as a result of previous instructions given by the customer to the bank. Answer: Standing orders FBQ32: --------- becomes necessary as a result of differences between the cash book prepared by an account holder and the bank statement prepared by the bank. Answer: Reconciliation FBQ33: ---------- is any item, process or activity for which a separate measurement of cost is required. Answer: Cost object FBQ34: --------- is to be used in any given situation is that which is most relevant to the purpose of the cost ascertainment exercise. Answer: Cost Unit FBQ35: Sugar PLC produces bottles of sugar with a Selling price of N1,000 and a variable cost of N600. Fixed cost is N6,000,000 per annum. Calculate the sales at break-even point. Answer: N15,000,000 MCQ1: Book-keeping by Lucia Pacioli, an Italian monk was published in____ Answer: 1494 MCQ2: The main statutory document for the regulation of business in Nigeria is the Answer: Companies and Allied Matters Act 1990 (as amended in 2004). MCQ3: Book-keeping is the ______of accounting Answer: recording phase MCQ4: The accounting process that starts with bookkeeping and ends with the preparation and interpretation of financial statements is called…….. Answer: Financial Accounting MCQ5: Accounting information should possess the following qualities before users can rely on it, except Answer: Predicting MCQ6: _______can be defined as broad basic assumptions that underlie the periodic financial statements of business enterprises. Answer: Accounting concepts MCQ7: An accounting concept in which assets will always equal liabilities plus owners’ capital is called_________ Answer: Duality Concept MCQ8: The ________is the assumption that an entity will continue in operational existence for the foreseeable future. Answer: going concern concept MCQ9: ________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. Answer: An asset MCQ10: Motor tax on the truck and lorry can be classified as__________ Answer: Revenue expenditure MCQ11: ________is sent by the seller if the buyer has been undercharged on the invoice. Answer: A debit note MCQ12: A form of payment that is convenient and safe is __________ Answer: The Cheque System MCQ13: One of these is not a common method of valuing inventory. Answer: stock-taking MCQ14: The method of valuing inventory that uses a predetermined rate set by the entity’s management for the purpose of calculating the cost of sales and inventory is Answer: Standard cost MCQ15: Credit transactions not relating to goods for resale (or services) are recorded in _________________ Answer: the journal MCQ16: What is the process of making the balance on the bank column of a cash book to agree with the balance on the bank statement received from the bank? Answer: Bank Reconciliation MCQ17: The cost accounting system of any organization is the foundation of the -------------------- financial information system. Answer: internal MCQ18: In an organisation, who needs a variety of information to plan, to control and to make decisions? Answer: Management MCQ19: What may be defined as “Gathering of cost information and its attachment to cost objects, the establishment of budgets, standard costs and actual costs of operations, processes, activities or products; and the analysis of variances, profitability or the social use of funds”. Answer: Cost Accounting MCQ20: Costs may be classified in numerous ways, but a fundamental and important method of classification is into: Answer: direct and indirect costs MCQ21: Prime cost and Overheads is equal to --------------------------- Answer: Total cost MCQ22: The total of direct costs is known as ___________. Answer: Prime Cost MCQ23: What is determined as the point where total income from sales is equal to total expenses (both fixed and variable)? Answer: Break-Even point MCQ24: Which of these is not an example of fixed costs? Answer: Commission MCQ25: Which of these is not an example of variable costs? Answer: Factory cost MCQ26: Which of the following is used to test the arithmetical accuracy of postings? Answer: Trial balance MCQ27: Which of the following errors affect the trial balance? Answer: Error of partial reversal of entry MCQ28: Which of the following does not affect the trial balance? Answer: Error of omission MCQ29: The purpose of the statement of profit or loss is to determine one of the following Answer: Net profit MCQ30: Given sales #34,000; return inward #1,000; opening stock #3,000; purchases #6,000: determine the gross profit. Answer: #24,000 MCQ31: Given a gross profit of #50,000; discount received #1,000; transport #5,000; salaries #10,000: determine the net profit. Answer: #36,000 MCQ32: Given opening stock as #15,000; purchases #10,000; carriage inward #5,000; closing stock #11,000: what is the cost of goods sold? Answer: #19,000 MCQ33: Assets that add value to the organization but cannot be seen are known as Answer: Intangible assets MCQ34: Given furniture #50,000; fittings #20,000; building #200,000; stock #60,000; debtors #40,000: determine the non-current assets. Answer: #270,000 MCQ35: Which of the following are non-distributable reserves? Answer: Capital reserves