MID TERM TEST FIRST TERM FINANCIAL ACCOUNTING SS 1

FIRST TERM MID TERM TEST 

           Class:  SS1                         Subject: FINANCIAL ACCOUNTING                      Time:

ANSWER ALL QUESTIONS 

1. The process of recording, classifying, selecting, measuring, interpreting, and communicating financial data of an organization to enable users make decision is called _______ (a)management (b) organization (c) book keeping (d) accounting 
2. ICAN means ________ (a) international city of Africa in Nigeria (b) institute of chartered accountants of Nigeria (c) Indian country in Asia Nigeria (d) associate of accounting scheme 
3. Assets is equal to _______ (a) capital + loan (b) capital + liabilities (c) capital + assets (d) capital + stock 
4. A subsidiary record is a book (a) of original entry (b) containing the ledgers (c) found in the journal (d) containing the balance sheet
5. Books of account consist of (a) ledger and subsidiary books (b) ledger and principal books (c) folios and subsidiary books (d) ledgers and cash book
6. Which of the following is not a source document? (a) credit note (b) invoice (c) debit note (d) bank note 
7. A book that contains the account for the financial transaction of an organization is ________ (a) register (b) folio (c) journal (d) ledger 
8. The total sales of journal is entered on the (a) debit side of sales account (b) credit side of sales account (c) credit side of cash account (d) debit side of cash account 
9. The total of the purchase day book is posted to the purchase account in the ______ (a) private ledger (b) nominal ledger (c) purchase ledger (d) general ledger 
10. The amount shown on the returns outward represent the amount of goods (a) returned to customers (b) returned by suppliers (c) sent out on sale (d) bought for resale 
11. Which of the following will a supplier send to a customer whose invoice was under cast? (a) credit note (b) debit note (c) invoice (d) cheque
12. In which of the following books will trade discount be recorded? (a) cash book (b) general ledger (c) purchase day book (d) invoice
13. A sales journal is used to record (a) sales expenses (b) cash sales (c) sales return (d) credit sales 
14. Which of the following best describes the path of a transaction? (a) source document 🡪journal 🡪ledger (b) source document 🡪 ledger 🡪 journal 🡪 (c) journal 🡪 ledger 🡪 source document (d) journal 🡪 source document 🡪 ledger 
15. Which of the following is not an accounting concept? (a) periodicity  (b) accuracy (c) consistency (d) objectivity 
16. The accounting concept which allows the use of a particular method for treating transaction for a reasonable number of year is (a) consistency (b) cost (c) accrual (d) conservation 
17. Profit are recognized when goods are sold. What concept is this? (a) realization (b) matching (c) periodicity (d) giving concern 
18. For every debit entry there is a corresponding credit entry. This is a principle of (a) single cash book (b) double entry (c) cash book (d) journal 
19. The sum of money given to a petty cashier out of which small payment is made is a/an (a) bonus (b) loan (c) advance (d) float 
20. Which of the following is a contra entry? (a) lodging of cheques into bank account (b) lodging of cash in hand into bank account (c) withdraw of cash for private use (d) fraudulent of discount received in the cash book
21.  A system where a separate cash book is maintained for small payment is (a) single entry (b) cash float (c) imprest (d) reimbursement
22. Where both debit and credit entries of a transaction are shown In the cash book, it is described as ________ (a) contra entry (b) reversal entry (c) double entry (d) single column
23. Which of the following is both a subsidiary book and a ledger (a) sales journal (b) purchases journal (c)returns inwards books(d) cash book
24. Discount allowed is found in the _______ (a) debit side of the three column cash book (b) debit side of a two column cash book (c) credit side of a two column cash book (d) credit side of a three column cash book
25. The bank column in the cash book shows a credit balance of #180. This means (a) a total payment of #180 (b) a gross receipt of #180 (c) a leftover of #180 with the bank (d) an overdraft of #180 cash 
26. A petty cash book can have (a) a debit balance only (b) a credit balance only (c) both debit and credit balances (d) a debit or nil balance
27. An overdraft is usually shown as a (a) credit balance in the cash column of the cash book (b) debit balance in the cash column of the cash book (c) credit balance in  the bank column of the cash book (d) debit balance in the bank column of the cash book
28.    Which of the following is the book of original entry for all payment and receipts whether by cash or cheque (a) sales day book (b) purchases day book (c) cash book (d) journal book 
29. Which of the following is not a petty cash book item? (a) stationaries (b) postage stamps (c) cutlass for gardeners (d) machinery 
30. A petty cashier spent #30,000 in a period and was left with #20,000. How much is the cash float? (a) #50,000 (b) #30,000 (c) #20,000 (d) #10,000

SECTION B

THEORY

ANSWER THREE (3) IN ALL

1a. Define book keeping and accounting 

1b. List four Importance of book keeping and accounting

1c. List four users of bookkeeping and accounting

2a. Define the principle of double entry 

2b. Open the necessary book of accounts and record the following transactions 

1. Mr. ojo started business with #40,000 cash
2. Paid #450,000 cash for rent
3. Received refund of insurance #300
4. Bought motor vehicle #60 paying by cheque

3a. Define source document

3b. Enter the following transaction of Femi and sons enterprises in the sales day book for the month of Aug. 96 and post to the ledgers 

Aug 1,      96 sold to Roger Mila 

                      20 bags of sugar at #40 each

                      12 plates at #140 each

Aug 12,   sold to Shorunmu

                12 bags of cement at #45 each

                5 packet of tea at #15 each

                Trade discount at 10% 

Aug 27, sold to muibat

              15 shoes at #65 each 

              100 packet shirts at #13 each 

               Trade discount at 5%

4a. Define subsidiary books

1. Give two reasons for subsidiary books 
2. Give six division of subsidiary books 

5. Write up a two column cash book from the following details and balance off as the end of the month  

    Jan 1      started business with capital #30,000 

    Jan 2      paid rent by cash #70

    Jan 3      received loan from Pablo #500 by cheque

    Jan 5      we paid olu by cheque #165

    Jan 6      we paid general expenses in cash #300

    Jan 9      withdraw #1,000 from cash fill and paid it into the bank account

    Jan 10    cash sales paid directly into bank #3,000 

    Jan 12    banked cash #900

    Jan 14    cash purchase #500

    Jan 16    bought good by cheque #130

    Jan 19    commission received by cheque 

    Jan 21    bought motor van by cheque #60

    Jan 22    cash drawing by the proprietor #21

    Jan 24    we paid biodun for goods bought #250, #150 in cash, and #100 by cheque

    Jan 26    wages paid in cash #35

    Jan 27    bought stationary paying by cash #75

    Jan 28    withdrew #105 from bank for private use

    Jan 30    rent received by cheque #45 

    Jan 31    cash sales #1,000 

5. Write up a two column cash book from the following details and balance off as the end of the month  

    Jan 1      started business with capital #30,000 

    Jan 2      paid rent by cash #70

    Jan 3      received loan from Pablo #500 by cheque

    Jan 5      we paid olu by cheque #165

    Jan 6      we paid general expenses in cash #300

    Jan 9      withdraw #1,000 from cash fill and paid it into the bank account

    Jan 10    cash sales paid directly into bank #3,000 

    Jan 12    banked cash #900

    Jan 14    cash purchase #500

    Jan 16    bought good by cheque #130

    Jan 19    commission received by cheque 

    Jan 21    bought motor van by cheque #60

    Jan 22    cash drawing by the proprietor #21

    Jan 24    we paid biodun for goods bought #250, #150 in cash, and #100 by cheque

    Jan 26    wages paid in cash #35

    Jan 27    bought stationary paying by cash #75

    Jan 28    withdrew #105 from bank for private use

    Jan 30    rent received by cheque #45 

    Jan 31    cash sales #1,000