Question: Accounting principles upon which preparation of accounting records are based which are universally acceptable are Answer:Accounting Concepts Question: In accounting the convention that recognises that profits should not be anticipated by recording them prematurely is called Answer:Convention of conservatism Question: The financial statement prepared by accountants should exclude one of the following Answer:Subsidiary books Question: One of these is not a way of interpreting financial statements to different users by an accountant Answer:Journal proper Question: The user of accounting information who ensures that the interests of the public are protected within the company activities is Answer:Government Question: Documents that buyers and sellers exchange between themselves which are binding on them are called Answer: Source documents Question: Accounting is a profession whose members must acquire Answer:Scientific knowledge Question: Accounting is used to measure the of an organisation Answer:Monetary performance Question: A branch of accounting that ascertains the cost of goods produced or services rendered in an organisation is Answer:Cost accounting Question: The officer who reports on the true and fair view of an organisations financial statements is called Answer:Chartered Accountant Question: The preparation of accounting services carried out at the local state and federal government ministries and parastatals is known as Answer:Public sector accounting Question: An accountant does not perform one of these functions Answer:Investment decision Question: One of these is a direct user of accounting information Answer:Managers Question: Information about income expenditure profit assets and liabilities can be obtained from Answer:Financial statement Question: The document that is used to record full details of money paid for a particular purpose is called Answer:Payment Voucher Question: It is called if every debit entry there is a corresponding credit entry and vice versa Answer:The double entry system Question: Advantage of a trial balance does not include one of the following Answer:Both debit and credit have equal amount Question: Error is an accounting terminology used to signify mistakes which are Answer:Genuine mistakes Question: A temporary account that is opened to record errors that cause the trial balance total not to agree is Answer:Suspense account Question: The cost of transporting goods meant for resale into the organisation is called Answer:Carriage Inwards Question: A debtor paid N65500 cash but his account was credited with N65000 while the cash book was debited with N65500 You are required to correct the errors Answer:Debit Suspense Account with N500 Question: A payment of N99000 to a creditor was omitted from the cash book but recorded in the creditors account in the ledger Answer:Debit Suspense Account with N99000 Question: Error that does not require any journal entry for rectification is called Answer:One sided error Question: The money spent in an organisation to generate income is called Answer:Expenditures Question: Expenditure that is carried forward in the statement of financial position which does not immediately affect profit is Answer:Capital expenditure Question: Cost of goods sold is also referred to as Answer:Cost of sales Question: The cost price of goods sold for a particular period can be derived by Answer:Adding purchases opening stock carriage inwards and deducting goods withdrawn by the owner returns outwards Question: The profit realised on trading activities alone without other expenses incurred in the business is Answer:Gross Profit Question: Statement of financial position is part of Answer:the final accounts Question: Thes financial obligations against the company that are not due for repayment within one year are called Answer:Non current liabilities Question: The following is not an example of business entity Answer:Sole Proprietor Question: Which of the following errors will NOT affect the agreement of a Trial Balance Answer:Error in computation of balances Question: In which of the following ledgers can data relating to discount be found Answer:Nominal ledger Question: The business entity concept requires that a business is treated as being separate from its owners Answer:False Question: Which of the following best describes the meaning of Purchases Answer:Items bought Question: Hill receives a 10 trade discount from Mountain and a further 5 settlement discount if goods are paid for within 14 days Hill bought goods with a list price of N200000 from Mountain Sales tax is at 175 What is the receivable Answer:N235000 Question: Accounting has been defined in several ways each emphasising a particular feature of the subject In general the first phase of financial accounting is the Answer:Writing of source documents Question: Which of the following best defines the concept of accounting Answer:A process of handling information of economic nature which is useful and adaptive to varying situations Question: A sole trader took some goods costing N800 from inventory for his own use The normal selling price of the goods is N1600 Which of the following journal entries would correctly record this Answer:Dr Drawing Account and Cr Purchases Account with N800 Question: Which of the following calculates a traders net profit for a period Answer:A: Closing net assets drawings capital introduced opening net assets Question: The last phase of book keeping is Answer:preparation of final accounts Question: One of the following is NOT an importance of accounting and book keeping Answer:Book keeping provides permanent records for all financial transactions Question: The accrual concept requires a business to treat as income those which are due and receivable and to treat as expenses those which are in arrears respectively Answer:Yes Yes Question: Which of the following are the effects of matching conceptDetermination of periodic profits ii Unexpired costs are deferred iii Cost of goods sold may be different from purchases Answer:I II and III Question: Who reports on the true and fair view of the financial statements Answer:The Auditor Question: Discounts allowed N3840 was credited to the discounts received accountDiscounts received N2960 was debited to the discounts allowed accountWhich journal entry will correct the errors Answer:Dr Discounts allowed N880 Cr Discounts received N880 Suspense account 1760 Question: Which of the following statements are correct1 Materiality means that only items having a physical existence may be recognised as assets2 The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect3 The money measurement concept is that only items capable of being measured in monetary terms can be recognised in financial statements Answer:3 only Question: What is the usefulness of the Annual Reports and Accounts Answer:For periodic review of companys performance Question: The implication of the entity concept to a sole trader is that the Answer:private use of business assets reduces owners capital Question: Which of the following transactions would reduce asset and reduce liability Answer:Cash paid to trade payables