ACC 202 CBT PRACTICE

1. 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?

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

3. Description of cash equivalents

4. Section used to analyze payment of dividends

5.

What is an imprest system?

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

7.

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

8.

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

9.

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

10.

One of the following is a disadvantage of Application Packages.

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

12.

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?

13.

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?

14. Copy -

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

15.

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?

16.

SSG bought a machine for N40,000 in January year 1. The machine had an expected useful life of six years and an expected residual value of N10,000. The machine was depreciated on the straight-line basis where a full year’s charge in made in the year of purchase and none in the year of sale. In December year 4, the machine was sold for N15,000. The company has a policy in its internal accounts of combining the depreciation charge with the profit or loss on disposal of assets. Its year end is 31 December.What is the total amount of profit/loss charged to the income statement over the life of the machine?

17.

Which of the following are used in a coding system for accounting transactions?

18.

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?

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

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

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

22. Section that reports proceeds from issuance of shares

23.

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?

24.

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

25.

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

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

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

28.

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

29.

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?

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

31.

Which ONE of the following best describes the stewardship function?

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

33. Main purpose of the indirect method in cash flow reporting

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

35.

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?

36.

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:

37.

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

38.

The profit of a business may be calculated by using which one of the following formulae?

39. Guidelines for liquidation and insolvency are detailed under

40.

The core objective of accounting is