Study and practice Accounting past questions with answers and detailed explanations. Then test your knowledge using our interactive CBT practice platform and prepare confidently for your upcoming examinations.
Goodwill appears in the books of a business only if it has been
Apurchased at a certain price
Braised in connection with the admission of a new partner
Craised to account for the true value of a business on the death of a partner
Draised in order to prevent the balance sheet showing that the business is insolvent
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Question 32
jamb1994
The major distinguishing element between the final accounts of a partnership and a sole trader is the
Adrawings account
Bappropriation account
Ccapital account
Dcreditors account
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Question 33
jamb1994
The net profit from a trading account of a non-profit making organization would be treated as income in the
Aincome and expenditure account
Breceipt and payment account
Cbalance sheet
Dstatement of affairs
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Question 34
jamb1994
The major difference between the receipt and payment account and the income and expenditure account is that while the former
Ais kept by the treasurer, the latter is not
Bdeals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year
Cis a T-account, the latter is not
Dis not in the ledger, the latter is
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Question 35
jamb1994
Which of the following categories of labour cost will be classified as direct?
Aaccountant's salary
Bfactory workers' salary
Cmanaging director's salary
Dcashier's salary
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Question 36
jamb1994
From which of the following sources are creditors control account most likely to be posted?
Asupplier's invoices
Bcash disbursements journal
Csubsidiary debtors ledger
Dpurchases journal
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Question 37
jamb1994
Beginning and ending accounts receivable balances were N8,000 and N15,000 respectively. If collections from customers during the period were N36,000, then total sales on account would be
AN23,000
BN29,000
CN36,000
DN43,000
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Question 38
jamb1994
If a bad debt previously written off is subsequently repaid, the amount collected is recorded as an
Aincome in the profit and loss account
Bincome in the balance sheet
Cadditional cash in the profit and loss account
Dexpense in the balance sheet
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Question 39
jamb1994
The net profit or loss for the year is determined in profit and loss account after
Adeducting purchases from sales
Bdeducting cost of goods sold from sales and adding administrative expenses
Cadding commissions received to gross profit
Deliminating all expenses from gross profit and adding any other income
The financial position of an organization at a particular time can be ascertained from the
Astatement of sources and application of funds
Bstatement of retained earnings
Cbalance sheet
Dprofit and loss account
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Question 42
jamb1994
When preparing a bank reconciliation statement, which of the following is deducted from the balance per bank statement?
ABank charges
BUncleared cheques
CReturned cheques
Dunpresented cheques
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Question 43
jamb1994
When is a petty cash account debited?
AWhen the fund is established and every time money is spent
BWhen the fund is established and every time it is replenished
CWhen the fund is established and when the size of the float is decreased
DEvery time money is drawn from the petty cash
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Question 44
jamb1994
The discount column of a three column cashbook is not balanced off but periodically transferred to the discount account because discounts
Aare not important in cashbooks
Bare cash items only
Cdo not form part of double entry
Dare used for bank reconciliation
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Question 45
jamb1994
The suspense account is used to correct book-keeping error where the
Aamount involved is quite significant
Bitem involved is not material
Citem involved is unknown
Derror does not affect the agreement of the trial balance
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Question 46
jamb1994
The use of the folio in the ledger is for
Areferencing purposes
Bparticulars of the transaction
Cthe account titles
Donly credit items
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Question 47
jamb1994
Mallam Gambo bought a freezer for his shop costing N10,500. In recording, he debited office expenses account and credited the bank account. What book-keeping error has he committed?
AError of commission
BError of reversal of entries
CError of principle
DCompensating error
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Question 48
jamb1994
What is the cardinal rule of the double entry system?
ADebit the increasing account and credit the decreasing account
BDebit the receiving account and credit the giving account
CDebit the asset account and credit the liability account
DDebit the revenue account and credit the expenditure account
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Question 49
jamb1994
When a business incurs labour cost in installing a fixed asset, the cost is treated as
Aadditional cost to the asset
Bbusiness wages and salaries
Cinstallation cost of the asset
Dbusiness cost of the asset
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Question 50
jamb1994
Antics Electronic Company recently bought six generators. Which of the following is the correct method of recording this transaction?
