ACC 202 CBT PRACTICE

1.

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

2.

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?

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

4.

The core objective of accounting is

5. 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?

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

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

8.

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

9. Financial decision-making relies heavily on

10.

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?

11.

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?

12.

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

13.

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

14.

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

15.

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:

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

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

18.

One of the following is a disadvantage of Application Packages.

19. 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?

20. Description of cash equivalents

21.

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

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

23.

H began trading on 1 July. The company is now preparing its accounts for the accounting year ended 30 June year 1. Rent is charged for the year from 1 April to 31 March, and was N1,800 for the year ended 31 March year 1 and N2,000 for the year ended 31 March year 2. Rent is payable quarterly in advance, plus any arrears, on 1 March, 1 June, 1 September and 1 December.The charge to H �??S income statement for rent for the year ended 30 June year 2 is

24.

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?

25.

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

26.

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

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

28. Copy -

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

29.

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?

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

31. Closure of a plant announced after the reporting period requires action under

32.

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

33.

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?

34.

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

35. Guidelines for liquidation and insolvency are detailed under

36.

Which ONE of the following best describes the stewardship function?

37.

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

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

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

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?