First Term Examination on Financial Accounting SS1
Lesson Plan: Examination
Subject: Financial Accounting
Class: SS1
Term: 1
Week: 13
Age: 15-16 years
Topic: Examination
Sub-topic: First Term Examination on Financial Accounting
Duration: 1 hour 30 minutes
Behavioral Objectives:
By the end of the examination, students should be able to:
- Recall and apply the concepts, principles, and techniques they have learned throughout the term in Financial Accounting.
- Answer a variety of objective and theoretical questions related to the topics covered during the first term.
- Demonstrate their understanding of key accounting processes, such as journalizing transactions, preparing ledgers, calculating discounts, and explaining accounting cycles.
Keywords:
- Financial Accounting
- Accounting Cycle
- Journals
- Ledgers
- Discounts
- Trial Balance
- Double-Entry System
Set Induction (5 mins)
The teacher will welcome students and explain the purpose of the examination, which is to assess their understanding and retention of the material covered in the first term. The teacher will provide guidelines for the exam, ensuring students understand the format and expectations.
Entry Behavior
Students should be familiar with the topics covered during the term, including the accounting cycle, journals, ledgers, discounts, and the double-entry system. They should be prepared for a combination of objective questions, theory, and practical problems.
Learning Resources and Materials:
- Examination question papers
- Answer sheets
- Calculator (if allowed)
- Pencils, erasers, and other stationery
Building Background/Connection to Prior Knowledge:
Students will draw on their knowledge of the fundamental concepts they have learned throughout the term. This includes accounting principles, processes like journal entries and ledger postings, and the practical application of financial accounting in real-world situations.
Embedded Core Skills:
- Critical Thinking: Applying learned knowledge to solve accounting problems.
- Numeracy Skills: Using mathematical operations to calculate discounts, trial balances, and journal entries.
- Problem Solving: Addressing accounting-related problems and providing accurate solutions.
Learning Materials:
- Question papers
- Answer sheets
- Past exam questions for practice (if available)
Instructional Materials:
- Whiteboard or chalkboard (for explanations, if necessary)
- Projector (if available for instructions or clarifications)
Content:
- Objective Questions:
- The exam will include multiple-choice and true/false questions to assess the students’ understanding of definitions, principles, and calculations related to the accounting topics covered during the term.
- Theory Questions:
- Students will answer questions related to the history of accounting, the classification of accounts, the accounting cycle, the preparation of financial statements, and the use of subsidiary books.
- Practical Problems:
- Students will solve problems related to preparing journals, ledgers, trial balances, calculating discounts, and applying the double-entry principle.
Financial Accounting SS1 First Term Examination Instructions
Instructions for Teachers:
- Ensure all students are seated properly before the exam begins.
- Emphasize that the exam is to be completed individually with no assistance from other students.
- Explain that any form of exam malpractice will lead to disqualification and disciplinary actions.
- Encourage students to read all questions carefully before answering.
- Remind students to manage their time effectively, allocating enough time for all sections.
- No electronic devices, notes, or books should be used during the exam.
- Monitor the students closely during the exam to ensure fairness.
- Collect all exam papers at the end of the exam and verify they are properly filled out.
Instructions for Students:
- Read all questions carefully before answering.
- Answer all questions to the best of your ability.
- For multiple-choice questions, select the correct option from the choices provided.
- For short-answer questions, write clear and concise answers.
- Avoid discussing the exam with other students while it is in progress.
- Do not use any unauthorized materials, such as notes, phones, or textbooks, during the exam.
- Make sure your name and exam number are clearly written on the exam paper.
- Keep your work neat and organized to ensure it is easy to read.
- Any form of cheating or malpractice will result in disciplinary action, including disqualification.
- Ensure that you have enough time to complete the exam, and review your answers before submission.
Part A: Objective Questions
(30 Fill-in-the-Blank Questions with Options)
- The accounting equation is: _______ = Liabilities + Owner’s Equity.
a) Assets
b) Income
c) Capital
d) Profit - The _______ is a document used to record sales on credit.
a) Purchase journal
b) Sales journal
c) Receipt
d) Invoice - _______ is the principle where every transaction must be recorded in two accounts.
a) Single-entry system
b) Double-entry system
c) Accrual accounting
d) Cash basis - A _______ balance checks whether the debits equal the credits in the ledger.
a) Profit
b) Trial
c) Net
d) Final - _______ discounts encourage customers to pay their bills early.
a) Cash
b) Trade
c) Volume
d) Seasonal - _______ is used to summarize the financial transactions of a business.
a) Journal
b) Trial balance
c) Ledger
d) Financial statement - The _______ journal is used to record the purchase of goods on credit.
a) Sales
b) Purchase
c) Cash
d) Return Outward - A _______ is used to record payments and receipts of cash.
a) General ledger
b) Cashbook
c) Bank statement
d) Sales journal - The _______ accounting system focuses on recording daily financial transactions.
a) Financial
b) Cost
c) Bookkeeping
d) Managerial - A _______ entry records a business transaction for future reference.
a) Cash
b) Trial
c) Journal
d) Ledger - A _______ statement shows the financial position of a business at a given time.
a) Cash flow
b) Profit and loss
c) Balance sheet
d) Income statement - _______ is the main purpose of accounting in businesses.
a) Decision making
b) Tax collection
c) Marketing
d) Auditing - _______ is the type of accounting used for external reporting to stakeholders.
a) Managerial
b) Financial
c) Cost
d) Tax - A _______ is a record of all cash transactions in a business.
a) Trial balance
b) Cashbook
c) Ledger
d) Invoice - A _______ journal records all the sales made on credit.
a) Purchase
b) Return Outward
c) Sales
d) General - _______ accounts track transactions involving people or companies.
a) Personal
b) Impersonal
c) Real
d) Nominal - _______ are documents that record evidence of transactions in accounting.
a) Ledgers
b) Journals
c) Source documents
d) Invoices - The _______ journal records all purchases made for cash.
a) General
b) Cash
c) Return Inward
d) Sales - The _______ is a document used to adjust accounts and correct errors.
a) Journal entry
b) Trial balance
c) Correction memo
d) Ledger - A _______ is a financial statement that reports a company’s revenues and expenses.
a) Income statement
b) Balance sheet
c) Statement of cash flow
d) Profit and loss statement - The _______ is the document used for recording the sale of goods on credit.
a) Purchase invoice
b) Sales receipt
c) Sales journal
d) Cashbook - _______ is a method of accounting that records transactions when cash is received or paid.
a) Cash basis accounting
b) Accrual accounting
c) Depreciation accounting
d) Financial accounting - A _______ account tracks the value of company property, plant, and equipment.
a) Real
b) Personal
c) Temporary
d) Equity - The _______ is where all daily transactions are first recorded.
a) Ledger
b) Journal
c) Cashbook
d) Trial balance - The _______ system is designed to ensure every transaction has an equal effect on two accounts.
a) Single-entry
b) Double-entry
c) Accrual
d) Cash-based - A _______ is a financial document that supports accounting entries made in journals.
a) Source document
b) Invoice
c) Journal entry
d) Trial balance - _______ is a form of business transaction involving the purchase of goods on credit.
a) Sales journal
b) Purchase journal
c) Return inward journal
d) Cash journal - The _______ statement summarizes a business’s performance over a specific period.
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Profit and loss statement - _______ transactions are recorded when cash changes hands in the cashbook.
a) Credit
b) Cash
c) Accrual
d) Business - The _______ is an essential document that tracks all business activities.
a) Journal
b) Trial balance
c) Ledger
d) Source document
Part B: Theory Questions
(30 Short Answer Questions)
- What is the definition of bookkeeping?
- Explain the concept of the double-entry system in accounting.
- What is the purpose of the trial balance?
- Define a journal in accounting.
- What is the role of source documents in accounting?
- What is the purpose of the cashbook?
- How does the accounting equation work?
- Describe the difference between a personal account and a real account.
- What are the different types of discounts in accounting?
- What is a ledger, and how does it function in accounting?
- Define the term “sales journal.”
- What are the two main types of financial statements?
- What is a purchase journal, and why is it important?
- Explain the difference between accrual accounting and cash-based accounting.
- What is the function of the income statement?
- Why is a balance sheet important for businesses?
- How is the double-entry system applied when recording transactions?
- Define a trade discount and explain its purpose.
- What is the role of the accounting cycle in a business?
- Describe the importance of the accounting equation.
- What is the purpose of a general ledger?
- How does the cashbook help manage business finances?
- Explain the process of posting transactions to the ledger.
- Why is the trial balance an important step in the accounting cycle?
- What is the role of accountants in preparing financial statements?
- Define and explain the importance of the statement of cash flows.
- How does a business calculate and apply trade discounts?
- What are the key differences between financial accounting and managerial accounting?
- What is the purpose of a journal entry?
- Explain the importance of recording financial transactions accurately.
Part C: True or False Questions
(30 True or False Questions)
- Every accounting transaction must be recorded in two accounts. (True/False)
- The double-entry system ensures that the total debits equal total credits. (True/False)
- The trial balance is prepared to verify that the accounting equation is balanced. (True/False)
- The sales journal records all transactions made on credit. (True/False)
- Cash transactions are recorded in the general journal. (True/False)
- A balance sheet summarizes a company’s profits and losses. (True/False)
- A ledger contains all financial records of a business. (True/False)
- Trade discounts reduce the selling price of goods before tax. (True/False)
- All businesses must use the cashbook for recording daily transactions. (True/False)
- Accounting entries are made in the ledger before being posted to the journal. (True/False)
- Depreciation is recorded in a business’s income statement. (True/False)
- The balance sheet reports a business’s financial position at a specific point in time. (True/False)
- Income statements provide information about business revenue and expenses. (True/False)
- The general ledger is used to track customer accounts only. (True/False)
- Businesses do not need to use source documents to support accounting entries. (True/False)
- The return inward journal tracks goods returned by customers. (True/False)
- Accrual accounting records transactions when payment is received or made. (True/False)
- The cashbook tracks all receipts and payments involving cash. (True/False)
- A financial statement summarizes the financial activities of a business. (True/False)
- The purchase journal is used to record goods bought for cash. (True/False)
Part D: Fill in the Gaps Questions
(30 Fill-in-the-Blank Questions without Options)
- _______ is the process of recording all business transactions.
- The _______ is the accounting document used to track all cash transactions.
- _______ accounts are used to track business expenses.
- _______ discounts are given to encourage early payment by customers.
- The _______ is used to prepare a company’s financial statements.
- _______ is the accounting equation used to show the relationship between assets, liabilities, and owner’s equity.
- _______ is a document that shows a business’s financial position at a specific time.
- _______ are journals used to record sales and purchases.
- A _______ balance is used to verify that total debits equal total credits.
- _______ is the recording of all transactions in the journal before posting to the ledger.
- A _______ is an account that tracks assets, liabilities, or equity.
- _______ is the method of accounting that records transactions when cash is received.
- _______ accounting involves the recording of transactions when they occur, regardless of payment.
- _______ is an account used to track transactions with individuals.
- _______ is the document used to verify a business transaction.
- A _______ journal records goods sold on credit.
- _______ transactions are recorded in the general journal.
- A _______ statement summarizes the income and expenses of a business over a period of time.
- A _______ journal tracks purchases made for cash.
- _______ accounts are used to track business owners’ investments.
- _______ journals record the sales made by a business.
- The _______ is used to track all cash and bank transactions.
- _______ are discounts given on goods or services as an incentive for early payment.
- _______ is the process of analyzing transactions and recording them in journals.
- _______ accounts are used to track transactions between the business and customers.
- The _______ statement is used to summarize a company’s profits and losses.
- _______ is used to track a business’s financial position.
- The _______ journal tracks sales made on credit.
- _______ is an example of an internal accounting process.
- _______ is the system used to track all transactions within a business
Presentation Steps:
Step 1: Administration of Examination (1 hour)
- The teacher will distribute the examination papers and give instructions on the examination process, including the time allocated for each section.
- Students will begin the examination.
Step 2: Monitoring the Examination (30 mins)
- The teacher will circulate the room to monitor the students’ progress, ensuring no cheating and assisting with any queries that arise, without giving away answers.
Teacher’s Activities:
- Distribute and explain the exam format.
- Provide students with the necessary resources and materials.
- Monitor the exam and answer any questions from students.
- Ensure students understand the marking scheme and time limitations.
Learner’s Activities:
- Complete the exam paper within the time frame.
- Attempt all sections of the exam, ensuring accuracy in their answers.
- Double-check their answers before submitting the exam paper.
Class Activity Discussion (FAQs):
Frequently Asked Questions (FAQs) for the Examination:
- How should I approach objective questions?
Answer: Read each question carefully and eliminate any obviously incorrect options. Use your knowledge of the topic to select the best possible answer. - What should I do if I am stuck on a theory question?
Answer: Try to recall the key points related to the topic, and if unsure, move on to the next question and return to it later. - Can I use a calculator in the exam?
Answer: Yes, you can use a calculator if allowed, especially for calculations involving discounts, trial balances, or other arithmetic. - What if I don’t understand a practical problem in the exam?
Answer: Break the problem down step by step. Look for key details such as the type of transaction or the accounts involved, and apply the appropriate accounting principles.
Objective Questions (15 Fill-in-the-Blank Questions with Options a, b, c, or d):
- The accounting cycle ends with __________.
a) Preparing financial statements
b) Identifying transactions
c) Posting to the ledger
d) Journalizing transactions - A trial balance is prepared to ensure that __________.
a) Debits equal credits
b) Discounts are calculated correctly
c) Accounts are classified
d) Transactions are recorded - The __________ system requires that every transaction be recorded with equal debits and credits.
a) Matching
b) Realization
c) Double-entry
d) Recording - A cashbook records __________.
a) Cash inflows and outflows
b) Sales transactions
c) Journal entries
d) Discounts granted - The ledger contains __________.
a) Trial balances
b) Detailed transaction records
c) Permanent account balances
d) Sales and purchase transactions - A trade discount is given to __________.
a) Encourage early payment
b) Customers who buy in bulk
c) Reward loyal customers
d) Customers with poor credit ratings - A sales journal records __________.
a) Cash payments
b) Sales on credit
c) Return inward transactions
d) Purchase transactions - The correct format of a double-entry system involves recording __________.
a) One debit and one credit entry
b) Multiple debit entries
c) Only credit entries
d) No entries - The purpose of a subsidiary book is to __________.
a) Record all transactions at once
b) Organize specific types of transactions
c) Prepare financial statements
d) Maintain bank balances - The classification of accounts includes __________ accounts.
a) Real, Nominal, Personal
b) Cash, Credit, Bank
c) Assets, Liabilities, Equity
d) Income, Expenses, Drawings - The accounting equation is __________.
a) Assets = Liabilities + Equity
b) Assets = Income + Expenses
c) Revenue = Cost of Sales + Profit
d) Revenue = Assets + Liabilities - The function of a trial balance is to __________.
a) Test the accuracy of the ledger balances
b) Summarize financial statements
c) Identify errors in accounting
d) Record new transactions - A cash discount encourages customers to __________.
a) Buy in bulk
b) Pay early
c) Make credit purchases
d) Pay higher prices - The __________ is where sales and purchase transactions are recorded.
a) General ledger
b) Journal
c) Subsidiary book
d) Trial balance - The basic principle of accounting is __________.
a) Matching
b) Double-entry
c) Revenue recognition
d) Conservatism
Evaluation Questions (10 Questions):
- Describe the steps involved in the accounting cycle and their importance.
- What is the difference between a trade discount and a cash discount?
- Explain the process of preparing a trial balance.
- What is the significance of the double-entry system in accounting?
- How would you classify the accounts in the ledger?
- Explain the purpose of a subsidiary book and provide examples.
- How do you calculate a trade discount and what impact does it have on financial statements?
- What are the benefits of preparing a cashbook?
- Define the accounting equation and explain its relationship to financial statements.
- Why is it important to maintain accurate accounting records?
Conclusion (10 mins):
Once the exam is over, the teacher will provide instructions on submitting the papers. Afterward, a brief session will be held to encourage students to reflect on the exam and any areas where they felt confident or unsure. The teacher will outline the process for reviewing the results and preparing for the next term