Financial Accounting Practice Exam Quiz!
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- 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
Correct Answer
D. Total debtorsExplanation
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- 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
Correct Answer
C. N3,750Explanation
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- 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
Correct Answer
B. Cash BookExplanation
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- 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
Correct Answer
D. Shown in the balance sheet as current liabilityExplanation
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- 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
Correct Answer
C. Incomplete recordsExplanation
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- 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
Correct Answer
D. N101,190Explanation
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- 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
Correct Answer
B. N169,190Explanation
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- 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
Correct Answer
D. N92,000Explanation
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- 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
Correct Answer
C. Credit in sales ledgerExplanation
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- 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
Correct Answer
D. Credit of Capital AccountExplanation
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- 11.
A partner whose liability goes beyond his capital is known as
- A.
Dormant partner
- B.
Limited partner
- C.
General partner
- D.
Nominal partner
Correct Answer
C. General partnerExplanation
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- 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
Correct Answer
A. Is yet to be paidExplanation
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- 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
Correct Answer
B. N8,400Explanation
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- 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
Correct Answer
C. N2,400Explanation
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- 15.
The amount for which a business is sold is the
- A.
Goodwill
- B.
Consolidated fund
- C.
Purchases consideration
- D.
Capital reserved
Correct Answer
C. Purchases considerationExplanation
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- 16.
Which of the following is a prime cost
- A.
Royalty
- B.
Salary
- C.
Commission
- D.
Discount allowed
Correct Answer
A. RoyaltyExplanation
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- 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
Correct Answer
C. Error in additionExplanation
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- 18.
When a transaction is completely left out, it is an error of
- A.
Commission
- B.
Omission
- C.
Principle
- D.
Compensation
Correct Answer
B. OmissionExplanation
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- 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
Correct Answer
B. Partner’s drawingExplanation
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- 20.
The reduction in the value of goodwill is
- A.
Amortization
- B.
Appreciation
- C.
Depletion
- D.
Depreciation
Correct Answer
A. AmortizationExplanation
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- 21.
The total current liabilities is ____________
- A.
N300.00
- B.
N1,000.00
- C.
N1,300.00
- D.
N1,500.00
Correct Answer
C. N1,300.00Explanation
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- 22.
What is the total value of Agboola’s fixed assets?
- A.
N2,800.00
- B.
N1,500.00
- C.
N1,300.00
- D.
N500.00
Correct Answer
B. N1,500.00Explanation
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- 23.
The total current assets is ____________.
- A.
N300.00
- B.
N1,000.00
- C.
N1,500.00
- D.
N1,300.00
Correct Answer
D. N1,300.00Explanation
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- 24.
The following are balance sheet items except
- A.
Closing stock
- B.
Opening stock
- C.
Net profit
- D.
Prepayment
Correct Answer
B. Opening stockExplanation
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- 25.
A balance sheet shows only ------
- A.
Fixed assets and current assets
- B.
Assets and current liabilities
- C.
Assets and capital
- D.
Assets and liabilities
Correct Answer
D. Assets and liabilitiesExplanation
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- 26.
All the following except one are features of preference shares except?
- A.
They have a fixed rate of dividend
- B.
Their dividends are paid after all other classes of shares are paid
- C.
It's dividends can be accumulated
- D.
Preference shares can be converted to ordinary shares at a later time
Correct Answer
B. Their dividends are paid after all other classes of shares are paidExplanation
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- 27.
All ordinary shares are participating in nature but not all preference shares are participating. This means that?
- A.
All Ordinary shares are not equity owners
- B.
All preference shares can vote and be voted for in choosing directors
- C.
All ordinary shares have the right to take part in the management of the business
- D.
All preference shares are debtors of the business
Correct Answer
A. All Ordinary shares are not equity ownersExplanation
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- 28.
When shares are issued at premium, this means that?
- A.
The company makes loss
- B.
The company makes gain
- C.
The company gives out shares for nothing
- D.
The company sell share without loss or gain
Correct Answer
B. The company makes gainExplanation
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- 29.
When shares are issued at discount, this means that?
- A.
The company makes loss
- B.
The company makes gain
- C.
The company gives out shares for nothing
- D.
The company sell share without loss or gain
Correct Answer
A. The company makes lossExplanation
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- 30.
The word Quoted price in issue of shares means?
- A.
The price in the prospectus
- B.
The nominal price
- C.
The actual price the share was sold
- D.
The expected price the share was sold
Correct Answer
A. The price in the prospectusExplanation
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- 31.
…………. is a terminology used to describe the amount allocated to a particular item of expenditure in government budget?
- A.
Vote
- B.
Warrant
- C.
Head
- D.
Gross pay
Correct Answer
A. VoteExplanation
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- 32.
Jokotade returned goods to us ₦300. Which subsidiary book will this be entered?
- A.
Return Inward Journal
- B.
Cash Book
- C.
Return Outward journal
- D.
Purchases Journal
Correct Answer
A. Return Inward JournalExplanation
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- 33.
One of the following is an example of non-banking institutions?
- A.
Capital Market
- B.
Insurance Firm
- C.
Money Deposit bank
- D.
Microfinance Bank
Correct Answer
B. Insurance FirmExplanation
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- 34.
………... signifies the embodiment of all structures, platforms and process put in place for smooth running and regulation of the monetary flows n the Nigerian economy?
- A.
The Constitution
- B.
The Finance Act
- C.
The Nigeria Financial System
- D.
The Nigerian Judiciary
Correct Answer
C. The Nigeria Financial SystemExplanation
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- 35.
The following are components of Nigeria's financial system except?
- A.
Financial Institution
- B.
Financial Markets
- C.
Financial Instruments
- D.
Financial Meddling
Correct Answer
D. Financial MeddlingExplanation
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- 36.
One of the following is not an Operators of Nigeria Financial System?
- A.
Federal Ministry of Finance
- B.
Central Bank of Nigeria
- C.
Tutor Generals of Education
- D.
The Nigeria Deposit Insurance Corporation
Correct Answer
C. Tutor Generals of EducationExplanation
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- 37.
…………. is the section of the financial market that is used for buying and selling of assets which have short term life span that is financial instruments with original maturity within a year?
- A.
Capital market
- B.
Second Tier security Market
- C.
Finance Market
- D.
Money Market
Correct Answer
D. Money MarketExplanation
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- 38.
……………..are documents used to established the occurrence of a financial transaction?
- A.
Financial Documents
- B.
Source Documents
- C.
Financial transaction
- D.
Transaction Documents
Correct Answer
B. Source DocumentsExplanation
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- 39.
………an exchange of intentions between a potential buyer and a potential seller backed with a cash payment or cheque payment or promise to pay or set off payment.
- A.
Financial Documents
- B.
Cash Transactions
- C.
Financial transaction
- D.
Credit Transaction
Correct Answer
C. Financial transactionExplanation
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- 40.
All the following are examples of source documents except?
- A.
Cheque Stub
- B.
Airfreight Note
- C.
I Owe You (IOU)
- D.
Paper Money
Correct Answer
D. Paper MoneyExplanation
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- 41.
……….. are usually stated in the invoice?
- A.
Payment Terms
- B.
Destination of goods
- C.
Name of shipper
- D.
Amount paid
Correct Answer
D. Amount paidExplanation
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- 42.
……… is a written acknowledgement that a person received money or property in payment following a sale or other transfer of goods or provision of service?
- A.
Cheque Stub
- B.
Airfreight Note
- C.
Receipt
- D.
Paper Money
Correct Answer
C. ReceiptExplanation
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- 43.
Transaction are usually affected by entries -----
- A.
One
- B.
Double
- C.
Three
- D.
Four.
Correct Answer
B. DoubleExplanation
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- 44.
The term “folio” in account means -----
- A.
A page in the ledger.
- B.
An account in the book.
- C.
A page in the book.
- D.
A page in file.
Correct Answer
A. A page in the ledger.Explanation
The term "folio" in account refers to a page in the ledger. In accounting, a ledger is a book that contains all the accounts of a company. Each account is assigned a specific page in the ledger, and this page is known as a folio. The folio helps in organizing and tracking the transactions related to a particular account.Rate this question:
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- 45.
When a buyer is under-charged, the seller forwards
- A.
A debit note
- B.
A credit note
- C.
An under cast note
- D.
A payment receipt
Correct Answer
A. A debit noteExplanation
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- 46.
“A business unit is assumed to operate into foreseeable future and earn reasonable net income”. This statement is emphasized by the concept of
- A.
Business entity.
- B.
Going on concern.
- C.
Realization.
- D.
Accrual.
Correct Answer
B. Going on concern.Explanation
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- 47.
The act of collecting, recording and interpreting accounting data is ------
- A.
Cost accounting
- B.
Management accounting
- C.
Financial accounting
- D.
Data processing.
Correct Answer
C. Financial accountingExplanation
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- 48.
Transfer pricing is a term used in
- A.
Company account
- B.
Partnership account
- C.
Manufacturing account
- D.
Cash account
Correct Answer
C. Manufacturing accountExplanation
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- 49.
The process of ascertaining the new market value of an asset is termed
- A.
New Price
- B.
Re-costing
- C.
Revaluation
- D.
Market research
Correct Answer
C. RevaluationExplanation
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- 50.
A real account is the account of _________.
- A.
Expenses or losses
- B.
Gain or incomes
- C.
Physical tangible assets
- D.
Current liabilities
Correct Answer
C. Physical tangible assetsExplanation
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Current Version
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Mar 21, 2023Quiz Edited by
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Sep 23, 2020Quiz Created by
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