ACC 202 CBT PRACTICE

1. Recognition of a $1 million lawsuit payment decided after year-end due to a pre-existing obligation best fits under

2. Copy -

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

3. Claims incurred and premiums earned are major components of the

4.

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

5.

Which of these statements CANNOT be defined as income?

6.

On 1 May, East owed a supplier N1,200. During the month of May, East:(1)Purchased goods for N1,700 and the supplier offered a 5% discount for payment within the month.(2)Returned goods valued at N100 which had been purchased in April. (3)Sent a cheque to the supplier for payment of the goods delivered in May.What is the balance on the supplier's account at the end of May?

7.

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

8.

The core objective of accounting is

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

10.

B operates the imprest system for petty cash. At 1 July there was a float of N150, but it wa sdecided to increase this to N200 from 1 August onwards. During July, the petty cashier received N25 from staff for using the photocopier and a cheque for N90 was cashed for an employee. In July, cheques were drawn for N500 for petty cash.What was the total expense paid from petty cash in July?

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

12.

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

13. Description of cash equivalents

14. Guidelines for liquidation and insolvency are detailed under

15.

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?

16. Section that reports proceeds from issuance of shares

17.

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

18.

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:

19.

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

20.

Which one of the following should be accounted for as capital expenditure?

21.

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?

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

23.

What is an imprest system?

24.

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

25.

The accounting equation at the start of the month was:Assets N14,000 less liabilities N6,500.During the following month, the business purchased a non-current asset for N6,000, payingby cheque, a profit of N9,000 was made, and payables of N7,500 were paid by cheque.What would the balance on capital be at the end of month?

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

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

28.

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?

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

30.

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?

31. Partner with limited liability and no involvement in management typically belongs to

32.

One of the following is a disadvantage of Application Packages.

33. Account used to record the disposal of assets and payment of liabilities during dissolution is

34.

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

35. Financial statements in banks are required to be published annually according

36. Board-approved dividends after financial year-end but before statement authorization require

37. 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?

38. CBN approval must be obtained before a financial institution can begin operations under

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

40.

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