First Term Examination Accounting SS 1
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Subuode Gbaga Gasline Ogun State
1st Term Examination
FINANCIAL ACCOUNTING
SSS 1
Section A
Answer all questions correctly
- A document sent from the seller to the buyer showing the description, quantity, unit price and net value of goods bought is known as __________ (a)Receipt (b)invoice (c)cheque (d)credit note
- On which source document can E & OE be found? (a)invoice (b)debit note (c)credit not (d)receipt
- The financial book where all cash transactions are recorded is called ___________ (a)credit book (b)purchases book (c)sales book (d)cash book
- __________ book is used to record the payment of minor expenses in an office (a)petty cash book (b)purchases day book (c)sales day book (d)purchases ledger
- The principal book of account is called ____________ (a)ledger (b)journal (c)cash book (d)cheque book
- Which of the following is NOT a book of original entry? (a)return inwards book (b)sales day book (c)purchase day book (d)balance sheet
- The single column cash book has _________ column on each side (a)one (b)two (c)three (d)four
- An account in which all cash receipts and cash payment transactions are recorded is called (a)cash account (b)savings account (c)current account (d)deposit account
- All are source documents except __________ (a)invoice (b)receipt (c)cheque (d)purchases daily book
- All the following are included in the fixed asset except __________ (a)machine (b)motor van (c)stock (d)building
- What is a ledger? (a)a book used for bank statements (b)a book in which individual accounts are kept (c)a book which records all credit transactions (d)a book which records all cash transactions
- The type of discount given to a buyer for prompt payment is known as __________ discount (a)trade (b)quantity (c)special (d)cash
- The cost price of an article is N500 and the profit on the article is 10%. What is the selling price? (a)N300 (b)N250 (c)N500 (d)N550
- A cash book has ________ columns (a)credit and debit (b)balance sheet (c)ledger (d)none of the above
- In book-keeping, all credit entries must have corresponding ________ entries (a)double (b)debit and credit (c)debit (d)credit
- Which of the following is an example of current liability? (a)stock (b)debtor (c)accrual (d)cash at hand
- Which of the following is an intangible asset? (a)building (b)motor vehicle (c)goodwill (d)stock
- Accounting equation states that _____________ (a)assts = capital – liabilities (b)capital = assets + liabilities (c)assets = capital + liabilities (d)Liabilities = assets + capital
- The transfer of money from the cash to bank or withdrawal of cash from bank is known as __________ (a)set – off (b)contra entries (c)cash lodge (d)A and B
- What are the two accounts to be opened when cash is withdrawn for personal use? (a)personal a/c and cash a/c (b)drawings a/c and personal a/c (c)cash a/c and drawings a/c (d)withdrawal and personal account
- The following are all examples of current assets except ___________ (a)cash (b)accounts receivable (c)inventory (d)prepaid expenses
- A ___________ is an asset that consists of cash and other property that can be readily converted into cash. (a)current asset (b)liquid asset (c)intangible asset (d)tangible asset
- The purpose of a ___________ is to ensure that all expenses are matched with the revenue earned in the same period. (a)classification system (b)financial statement (c)chart of accounts (d)accrual basis of accounting
- A __________ is an economic event that affects the financial position of a business. (a)transaction (b)ratio (c)liquidity (d)accounting equation
- The ___________ basis of accounting recognizes revenue when it is earned and expenses when they are incurred, regardless of when the cash is received or paid. (a)accrual (b)modification (c)materiality (d)cash
- The ___________ is a financial statement that reports the total revenue and expenses for a period of time. (a)balance sheet (b)income statement (c)statement of cash flows (d)trial balance
- The ___________ is a financial statement that reports the assets, liabilities, and equity of a business at a specific point in time. (a)balance sheet (b)income statement (c)statement of cash flows (d)trial balance
- The ___________ is a financial statement that reports the cash inflows and outflows for a period of time. (a)balance sheet (b)income statement (c)statement of cash flows (d)trial balance
- The ___________ is a financial statement that reports all the revenue and expenses for a period of time. (a)balance sheet (b)income statement (c)statement of cash flows (d)trial balance
- Income statements can be prepared using the ___________ or ___________ methods. (a)accrual, cash (b)modification, cash (c)materiality, accrual (d)cash, accrual
THEORY
Instruction: Attempt any three questions. Questions 1 and 2 are compulsory
- Write up a single column cash book of Mr. Ade from the following details and balance off as at end of the month 2015
Jan. 1 Started business with capital in cash N5,000
Jan. 2 Paid rent by cash N170
Jan. 3 Received loan from Pablo N5,000 by cash
Jan. 5 We paid Olu by cheque N165
Jan. 6 We paid general expenses in cash N300
Jan. 16 Cash purchased N500
Jan. 26 Wages paid in cash N35
Jan. 31. Cash sales N1,000
- Draft the Balance Sheet of Ojo from the following figures
N
Land Building 20,000
Cash in hand 15,000
Equipment 8.000
Creditors 16,000
Debtors 1,000
Stock 300
Motor Vehicle 2,500
Cash at bank 200
Loan 5,000
Capital 26,000
- (a). What are the source documents
(b). State six types of source documents
(c). Differentiate between debit note and credit note
- (a). Differentiate between single column and double column cash book
(b). Prepare two or double column cash book format
(c). What is the difference between cash and trade discounts
