FINANCIAL ACCOUNTING UNIVERSITY OF LAGOS AKOKA, 2008.
FINANCIAL ACCOUNTING
UNIVERSITY OF LAGOS
AKOKA, 2008.
________________________________________________1. W hen a transaction causes an asset account to increase, there is
A. a decrease of equal amount in the owner’s equity account
B. an increase in a liability account
C. an increase of equal amount in another asset account
D. a decrease of equal amount in a liability account2. The initial imprest as at July 1 st was N500. Petty cash vouchers with the custodian by July 15 th added up to N394, an lOU slip received from a coworker was N65 and there was a shortage of cash. The coworker made refund on July 18 th before the imprest was replenished.
The amount required to replenish the payments made from the imprest was
A. N399
B. N394
C. N358
D. N1013. M ayana Corporation uses special journals to record its transactions. lf 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.4. A n 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.5. T he Act establishing the institute of Chartered Accountants of Nigeria (ICAN) came into force on
A.1 st September, 1960
B.1 st October, 1960
C.1 st October, 1963
D.1 st September, 19656. Bank Account 59,410.00
Capital Account 50,000.00
Purchases Account 20,000.00
Rent 2,500.00
Stationery 90.00
Typewriter 6,500.00
Sales 38,000.00
In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?
A. N147910
B. N138500
C. N88500
D. N858007. A business transaction is recorded in the books of accounts when the
A. owner of the business invests his N10,000 in another company
B. business retains part of its profits for future expansion purposes
C. business applies for overdraft facilities from its bankers
D. owner of the business collects N5,000 from the accountant.8. W hen the factory cost of production has been ascertained, manufactured goods are transferred in trading accounts by
A. debiting manufacturing account and crediting trading account
B. crediting sales account and debiting trading account
C. debiting sales account and crediting trading account
D. crediting manufacturing account and debiting trading account9. R esponsibility according is particularly concerned with ,
A. historical accounting
B. controllable costs
C. storekeeping
D. valuation of stocks.10. S tate Bank collected a note for Al-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 books11. T he purchase of two generators by Hassan Electronics Enterprises should be recorded as
A. an acquisition of fixed assets
B. an expense in its general office expenses column
C. an acquisition of stock
D. a part of capital in the capital account.12. C ost 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 indecision making.13. Use the information below to answer questions
The initial imprest as at July 1 st was N500. Petty cash vouchers with the custodian by July 15 th added up to N394, an lOU slip received from a coworker was N65 and there was a shortage of cash. The coworker made refund on July 18 th before the imprest was replenished.
What was the actual cash in the till as at 15 th July?
A. N106
B. N101
C. N70
D. N36
UNIVERSITY OF LAGOS
AKOKA, 2008.
________________________________________________1. W hen a transaction causes an asset account to increase, there is
A. a decrease of equal amount in the owner’s equity account
B. an increase in a liability account
C. an increase of equal amount in another asset account
D. a decrease of equal amount in a liability account2. The initial imprest as at July 1 st was N500. Petty cash vouchers with the custodian by July 15 th added up to N394, an lOU slip received from a coworker was N65 and there was a shortage of cash. The coworker made refund on July 18 th before the imprest was replenished.
The amount required to replenish the payments made from the imprest was
A. N399
B. N394
C. N358
D. N1013. M ayana Corporation uses special journals to record its transactions. lf 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.4. A n 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.5. T he Act establishing the institute of Chartered Accountants of Nigeria (ICAN) came into force on
A.1 st September, 1960
B.1 st October, 1960
C.1 st October, 1963
D.1 st September, 19656. Bank Account 59,410.00
Capital Account 50,000.00
Purchases Account 20,000.00
Rent 2,500.00
Stationery 90.00
Typewriter 6,500.00
Sales 38,000.00
In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?
A. N147910
B. N138500
C. N88500
D. N858007. A business transaction is recorded in the books of accounts when the
A. owner of the business invests his N10,000 in another company
B. business retains part of its profits for future expansion purposes
C. business applies for overdraft facilities from its bankers
D. owner of the business collects N5,000 from the accountant.8. W hen the factory cost of production has been ascertained, manufactured goods are transferred in trading accounts by
A. debiting manufacturing account and crediting trading account
B. crediting sales account and debiting trading account
C. debiting sales account and crediting trading account
D. crediting manufacturing account and debiting trading account9. R esponsibility according is particularly concerned with ,
A. historical accounting
B. controllable costs
C. storekeeping
D. valuation of stocks.10. S tate Bank collected a note for Al-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 books11. T he purchase of two generators by Hassan Electronics Enterprises should be recorded as
A. an acquisition of fixed assets
B. an expense in its general office expenses column
C. an acquisition of stock
D. a part of capital in the capital account.12. C ost 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 indecision making.13. Use the information below to answer questions
The initial imprest as at July 1 st was N500. Petty cash vouchers with the custodian by July 15 th added up to N394, an lOU slip received from a coworker was N65 and there was a shortage of cash. The coworker made refund on July 18 th before the imprest was replenished.
What was the actual cash in the till as at 15 th July?
A. N106
B. N101
C. N70
D. N36