The Way (Principles Of Account)

10 Questions | Total Attempts: 76

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Principles of Account Test for Post-UME Examination


Questions and Answers
  • 1. 
    The Act establishing the Institute of Chartered Accountants of Nigeria (ICAN) came into force on
    • A. 

      1stSeptember, 1960

    • B. 

      1st October, 1960

    • C. 

      1st October, 1963

    • D. 

      1st September, 1965.

  • 2. 
    Cost reports for attention of management should reflect
    • A. 

      As much details as possible

    • B. 

      Summary figure only

    • C. 

      Details of non-controllable expenses

    • D. 

      Cost and comparable data useful in decision making.

  • 3. 
    If the inventory at the end of the current is understand and the error is not caught during the following year, the effect is to
    • A. 

      Understate income this year and understate in next year

    • B. 

      Overstate income this year and overstate in next year

    • C. 

      Understate this year's income with no effect on next year's

    • D. 

      Overstate the income for the two-year period.

  • 4. 
    The total of the discounts received column in the cash book is posted to the
    • A. 

      Credit of the discounts received account

    • B. 

      Debit of the discounts allowed account

    • C. 

      Credit of the discounts allowed account

    • D. 

      Debit of the discounts received account.

  • 5. 
    Use the information below to answer question 5  The initial imprest as at July 1st was N500. Petty cash vouchers with the custodian by July '15th  added up to N394. an IOU slip received from a coworkerwas N65 and there was a shortage of N5 cash. The coworker made refund on July 18th before the imprest was replenished. What was the actual cash in the till as at 15th July?
    • A. 

      N106

    • B. 

      N101

    • C. 

      N70

    • D. 

      N36

  • 6. 
    Use the information below to answer question 6  The initial imprest as at July 1st was N500. Petty cash vouchers with the custodian by July '15th  added up to N394. an IOU slip received from a coworkerwas N65 and there was a shortage of N5 cash. The coworker made refund on July 18th before the imprest was replenished. The amount required to replenish the payments made from the imprest was
    • A. 

      N399

    • B. 

      N394

    • C. 

      N358

    • D. 

      N101

  • 7. 
    State Bank collected a note for AI-Makura Company. This collection, not yet recorded in Al-Makura's books, appears on the bank reconciliation as
    • A. 

      An addition to balance per books

    • B. 

      A deduction from balance per bank statement

    • C. 

      An addition to balance per bank statement

    • D. 

      A deduction from balance per books.

  • 8. 
    Mayana Corporation uses special journals to record its transactions. If one of Mayana's customers returns merchandise purchased with cash (for a refund), it makes an entry in the
    • A. 

      Cash receipts journal

    • B. 

      Sales journal

    • C. 

      General journal

    • D. 

      Cash disbursement journal.

  • 9. 
    Responsibility according is particularly concerned with
    • A. 

      Historical accounting

    • B. 

      Controllable costs

    • C. 

      Storekeeping

    • D. 

      Valuation of stocks.

  • 10. 
    An advantage of the use of the voucher system is that it
    • A. 

      Reduces the number of cheques that will be written during any giving period

    • B. 

      Provides a highly flexible system for handling unusual transactions

    • C. 

      Provides a comprehensive record of business done with particular suppliers

    • D. 

      Ensures that every expenditure is reviewed and verified before payment is made.

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