Financial Accounting Practice Exam Quiz!

20 Questions | Total Attempts: 145

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Financial Accounting Practice Exam Quiz!

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Questions and Answers
  • 1. 
    The balance in a sales ledger control account indicates:
    • A. 

      Difference between debtors and creditors

    • B. 

      Total sales

    • C. 

       total purchases

    • D. 

      Total debtors

  • 2. 
    Sales was N12,500, total expenses was N2,500 and net profit is 10% of sales. What is the gross profit?
    • A. 

      N11,250

    • B. 

      N8,750

    • C. 

       N3,750

    • D. 

      N1,250

  • 3. 
    Which of the following is equivalent to the Receipt and Payments account?
    • A. 

      Income and expenditure account

    • B. 

      Cash Book

    • C. 

      Subscription Account

    • D. 

      Profit or Loss Account

  • 4. 
    Subscription received in advance are
    • A. 

      Included in the income and expenditure account

    • B. 

      Not included in receipt and payment account

    • C. 

      Shown as a current asset in the balance sheet

    • D. 

      Shown in the balance sheet as current liability

  • 5. 
    Where records maintained are inadequate to facilitate the preparation of a trading, profit or loss account, this is described as
    • A. 

      Cost accounting

    • B. 

      Book keeping

    • C. 

      Incomplete records

    • D. 

      Double entry

  • 6. 
    Use the information below to answer the following question. Opening stock of raw materials                    24,750 Purchases of raw materials                         123,640 Carriage on raw materials                              10,000 Closing stock of raw materials                      45,000 Factory supervisor’s salary                             30,000 Wages of factory workers                               50,000 Royalties paid                                                    18,000 Insurance of factory                                         62,000 Work in progress                                               23,000 Raw materials returned                                    12,200 The value of raw materials consumed is
    • A. 

      N121,440

    • B. 

      N113,390

    • C. 

      N111,190

    • D. 

      N101,190

  • 7. 
    Use the information below to answer the following question. Opening stock of raw materials                    24,750 Purchases of raw materials                         123,640 Carriage on raw materials                              10,000 Closing stock of raw materials                      45,000 Factory supervisor’s salary                             30,000 Wages of factory workers                               50,000 Royalties paid                                                    18,000 Insurance of factory                                         62,000 Work in progress                                               23,000 Raw materials returned                                    12,200 The prime cost is
    • A. 

      N199,190

    • B. 

      N169,190

    • C. 

      N151,190

    • D. 

      N146,190

  • 8. 
    Use the information below to answer the following question. Opening stock of raw materials                    24,750 Purchases of raw materials                         123,640 Carriage on raw materials                              10,000 Closing stock of raw materials                      45,000 Factory supervisor’s salary                             30,000 Wages of factory workers                               50,000 Royalties paid                                                    18,000 Insurance of factory                                         62,000 Work in progress                                               23,000 Raw materials returned                                    12,200 The total overhead expenses is
    • A. 

      N142,000

    • B. 

      N115,000

    • C. 

      N110,000

    • D. 

      N92,000

  • 9. 
    Bad debts written off is shown as 
    • A. 

      Debit in sales ledger

    • B. 

      Debit in purchases ledger

    • C. 

      Credit in sales ledger

    • D. 

      Credit in purchases ledger

  • 10. 
    Where fixed capital are maintained, partner’s drawings are transferred to the 
    • A. 

      Credit of Capital Account

    • B. 

      Debit of Capital account

    • C. 

      Credit of Partner’s Current account

    • D. 

      Credit of Capital Account

  • 11. 
    A partner whose liability goes beyond his capital is known as 
    • A. 

      Dormant partner

    • B. 

      Limited partner

    • C. 

      General partner

    • D. 

      Nominal partner

  • 12. 
    An expenses is termed an “accrual” because it 
    • A. 

      Is yet to be paid

    • B. 

      Is a profit or loss account item

    • C. 

      Must appear in the balance sheet

    • D. 

      Is a trading account item

  • 13. 
    Use the following information to answer question 13 and 14 On 1/7/07, a trader owed wages of N2,000. During the year ended 30/6/08, wages of N2,400 were owed and N8,000 were paid. The wages of the year ended 30/6/08 is
    • A. 

      N12,400

    • B. 

      N8,400

    • C. 

      N8,000

    • D. 

      N7,000

  • 14. 
    Use the following information to answer question 13 and 14. On 1/7/07, a trader owed wages of N2,000. During the year ended 30/6/08, wages of N2,400 were owed and N8,000 were paid. Wages recorded in the balance sheet as at 30/06/08 is 
    • A. 

      N8,000

    • B. 

      N6,000

    • C. 

      N2,400

    • D. 

      N2,000

  • 15. 
    The amount for which a business is sold is the
    • A. 

      Goodwill

    • B. 

      Consolidated fund

    • C. 

      Purchases consideration

    • D. 

      Capital reserved

  • 16. 
    Which of the following is a prime cost
    • A. 

      Royalty

    • B. 

      Salary

    • C. 

      Commission

    • D. 

      Discount allowed

  • 17. 
    Which of the following errors will affects the totals of a trial balance?
    • A. 

      Compensating error

    • B. 

      Complete reversal of entry

    • C. 

      Error in addition

    • D. 

      Error of original  entry

  • 18. 
    When a transaction is completely left out, it is an error of
    • A. 

      Commission

    • B. 

      Omission

    • C. 

      Principle

    • D. 

      Compensation

  • 19. 
    Which of the following is not recorded in the partnership appropriation account?
    • A. 

      Interest on capital

    • B. 

      Partner’s drawing

    • C. 

      Share of profit

    • D. 

      Interest on drawing

  • 20. 
    The reduction in the value of goodwill is
    • A. 

      Amortization

    • B. 

      Appreciation

    • C. 

      Depletion

    • D. 

      Depreciation

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