ACC 202 CBT PRACTICE

1.

The process of locating and eliminating errors from a program is known as?

2. Description of cash equivalents

3.

The difference between an income statement and an income and expenditure account is that

4.

One of the following is a disadvantage of Application Packages.

5.

Which ONE of the following best describes the stewardship function?

6.

Use the following details to answer.Trade receivables control account balance 500,000.00 Allowance for doubtful debts 50,000.00Allowance for discount allowed on receivables 5%.The receivables figure to be shown under current assets in the Statement of Financial position is

7. Section that reports proceeds from issuance of shares

8.

Which ONE of the following expenses should be included in prime cost in a manufacturing account?

9.

The core objective of accounting is

10.

N purchased a machine for N15,000. The transportation costs were N1,500 and installation costs were N750. The machine broke down at the end of the first month in use and cost N400 to repair. N depreciates machinery at 10% each year on cost, assuming no residual value.What is the net book value of the machine after one year?

11. Copy -

A car was purchased for N12,000 on 1 April in year 1 and has been depreciated at 20% each year straight line, assuming no residual value. The company policy is to charge a full year's depreciation in the year of purchase and no depreciation in the year of sale. The car was traded in for a replacement vehicle on 1 August in year 4 for an agreed figure of N5,000. What was the profit or loss on the disposal of the vehicle in year 4?

12.

The objective of financial statements is it enables users to assess the performance ofmanagement and to aid in decision making

13.

An error of commission occurs where the entries required for a transaction are partially omitted.

14. Type of event that does not require adjustments to financial statements but must be disclosed if material is

15. Unexpired Risk Reserve (URR) is primarily associated with

16.

Non-current assets can best be defined as Items of machinery which are not moveable and are purchase with an intention of resale

17.

Which of the following errors will cause the trial balance totals to be unequal?

18.

What is an imprest system?

19.

During year 2016, Victor paid rent amounting to 500,000. He owed 50,000 at the beginning of the year and by 31 December 2016, he had paid rent in advance of 100,000. His rent charge for 2016 was?

20. Increase in property value by ₦5 million due to post-year-end real estate surge falls under

21.

The entries in a sales ledger control account are:Sales 250,000; Bank 225,000; Sales returns 2,500; Bad debts (irrecoverable debts?) 3,000; Bad debts (irrecoverable debts?) 3,000;Returned unpaid cheque 3,500; Contra with purchase ledger account 4,000;What is the balance on the sales ledger control accout

22.

Which of the following would result from an increase in the allowance for doubtful debts?

23. Copy -

Which of the following would result from an increase in the allowance for doubtful debts?

24. Financial decision-making relies heavily on

25. Bankruptcy of a customer announced in January, after year-end receivables of ₦500,000 existed, is treated as

26.

When there is inflation, the historical cost convention has the effect of

27. Common adjustment added back to net income under indirect method

28.

Which of these statements CANNOT be defined as income?

29.

An increase in inventories of N500 and a decrease in the bank balance of N600 and an increase in payables of N1,400 results in:

30.

A company bought a machine on 1 October year 1 for N52,000. The machine had an expected life of eight years and an estimated residual value of N4,000. On 31 March year 6, the machine was sold for N35,000. The company�??s yearend is 31 December. The company uses the straight-line method for depreciation and it charges a full year�??s depreciation in the year of purchase and none in the year of sale. What is the profit or loss on disposal of the machine?

31.

On 1 May, A pays a rent bill of N1,800 for the twelve months to 30 April. What is the charge/credit to the income statement for the year ended 30 November?

32. Copy -

On 1 June year 1, H paid an insurance invoice of N2,400 for the year to 31 May year 2. What is the charge to the income statement and the entry in the financial statement for the year ended 31 December year 1?

33.

A vehicle was purchased on 1 January 2011 at a cost of N2,000,000 and was depreciated at 25% on cost. It was sold on 31 December 2013 for N1,400,000. Full-year depreciation 25% on cost. It was sold on 31 December 2013 for N1,400,000. Full-year depreciation was charged in the years of purchase and disposal. Determine the profit or loss on the disposal

34.

A car was purchased for N12,000 on 1 April in year 1 and has been depreciated at 20% each year straight line, assuming no residual value. The company policy is to charge a full year's depreciation in the year of purchase and no depreciation in the year of sale. The car was traded in for a replacement vehicle on 1 August in year 4 for an agreed figure of N5,000. What was the profit or loss on the disposal of the vehicle in year 4?

35. Minimum number of individuals required to initiate a partnership business is

36.

Z's bank statement shows a balance of N825 overdrawn. The bank statement includes bankcharges of N50, which have not been entered in the cash book. There are unpresentedcheques totalling N475 and deposits not yet credited of N600. The bank statement incorrectly shows a direct debit payment of N160, which belongs to another customer.What figure for the bank balance should be shown in the statement of financial position?

37.

A company includes in inventory goods received before the year end, but for which invoices are not received until after the year end. This is in accordance with

38. Legal rule that determines how solvent partners absorb losses from an insolvent partner is called

39.

Which of these books of account could be classified as a subsidiary book as well as a ledger

40.

N operates an imprest system for petty cash. On 1 February, the float was N300. It was decided that this should be increased to N375 at the end of February, During February, the cashier paid N20 for window cleaning, N100 for stationery and N145 for coffee and biscuits. The cashier received N20 from staff for the private use of the photocopier and N60 for a miscellaneous cash sale.What amount was drawn from the bank account for petty cash at the end of February?