Acc 203
Acc 203
Acc 203
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: 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: 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: 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: 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 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withdrawn by the owner returns outwards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: Thes financial obligations against the company that are not due for
repayment within one year are called
Answer:Non current liabilities
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: 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: 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: 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: Who reports on the true and fair view of the financial statements
Answer:The Auditor
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: 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