NOUN e-exam

ACC 102 Past Questions & Answers

1: The underlying purpose of accounting is to provide financial information about an economic ——–

Answer: Entity

2: The main statutory document for the regulation of business in Nigeria is the ——–

Answer: Companies and Allied Matters Act 1990 (as amended in 2004).

3: ———– is the classification and recording of business transactions in the books of account.

Answer: Book keeping

4: ———– is an accounting process that starts with bookkeeping and ends with the preparation and interpretation of financial statements.

Answer: Financial Accounting

5: ———— is the collection of cost data in some organized ways by means of an accounting system.

Answer: Cost accumulation

6: ———- refers to the keeping of accounting record by hand written of relevant posting in the books of accounts.

Answer: Manual accounting system

7: ——— is a set of numbers and codes that define each account head and also differentiate between classes of accounts.

Answer: Chart of account

8: ———- enable some companies to use different accounting software for the financial records, but some organization still prefer the manual system for one reason or the other.

Answer: Computerized information systems

9: A ——— is cheaper to install in terms of cost when compared with a computerized system of maintaining financial records.

Answer: Manual system

10: ——— is the assumption that an entity will continue in operational existence for the foreseeable future.

Answer: Going Concern Concept

11: ——- refers to the assumption that in the measurement of profit, costs should be set against the revenue that they generate at the time when they arise.

Answer: matching concept

12: ——– concept allows a user to assume that all the transactions in an entity financial statements reflect the actual cost price billed, or revenue charged, for items.

Answer: Historical cost

13: ——— assumes that when accounting for transactions the preparer should look at the economic substance of a transaction, not its legal form.

Answer: Substance Over Form Concept

14: ——– can be defined as a tangible or intangible resource that is owned or controlled by an accounting entity, and which is expected to generate future economic benefits.

Answer: An asset

15: ——- can be defined as a legal obligation to transfer assets or provide services to another entity that arises from some past transaction or event

Answer: A liability

16: ——- are amounts provided to allow for liabilities that are anticipated but not yet quantified precisely, or for reductions in asset values.

Answer: Provisions

17: _______expenditure will have no value at the end of the period to which it relates.

Answer: Revenue

18: ___________typically includes the cost of purchasing a non-current asset and the cost of improvements to a non- current asset that lead to increased revenue, or sustained revenue.

Answer: Capital expenditure

19: . _____________ is a reduction in the amount that the customer has to pay, provided payment is made within a given period stipulated by the seller at the time of sale.

Answer: Cash discount

20: ——– is sent by the seller if the buyer has been undercharged on the invoice. It has basically the same layout and information as the invoice except that instead of details of the goods, it shows details of the undercharge.

Answer: Debit note

21: ———- is used to record the purchase on credit of goods for resale.

Answer: Purchase Day Book

22: ——– are generally referred to as the unsold portion of goods held for resale.

Answer: Inventories

23: The assumption that the last batches of goods are considered to be sold first prior to earlier purchases is known as

Answer: LIFO

24: ———– uses a predetermined rate set by the entity  management for the purpose of calculating the cost of sales and

inventory.

Answer: Standard Cost

25: ——— is a list of ledger account balances within a ledger, at a particular instance.

Answer: Trial balance

26: Error of ———– occurs when a transaction is recorded with the wrong amount at the beginning of the recording process.

Answer: Error of original entry

27: ———- are ownership interests a company has in another organization.

Answer: Investments

28: ——- are financial obligations against the company that are not due for repayment within one year.

Answer: Treasury bills

29: ———- are non-distributable reserves that are retained to comply with certain laws or for accounting requirement.

Answer: Capital Reserves

30: ——— is a summary of customers or supplier’s ledger in total.

Answer: Control account

31: ———- are payments made directly by the bank as a result of previous instructions given by the customer to the bank.

Answer: Standing orders

32: ——— becomes necessary as a result of differences between the cash book prepared by an account holder and the bank statement prepared

by the bank.

Answer: Reconciliation

33: ———- is any item, process or activity for which a separate measurement of cost is required.

Answer: Cost object

34: ——— is to be used in any given situation is that which is most relevant to the purpose of the cost ascertainment exercise.

Answer: Cost Unit

35: Sugar PLC produces bottles of sugar with a Selling price of N1,000 and a variable cost of N600. Fixed cost is N6,000,000 per annum. Calculate the sales at break-even point.

Answer: N15,000,000

1: Book-keeping by Lucia Piccioli, an Italian monk was published in____

Answer: 1494

2: The main statutory document for the regulation of business in Nigeria is the

Answer: Companies and Allied Matters Act 1990 (as amended in 2004).

3: Book-keeping is the ______of accounting

Answer: recording phase

4: The accounting process that starts with bookkeeping and ends with the preparation and interpretation of financial statements is called..

Answer: Financial Accounting

5: Accounting information should possess the following qualities before users can rely on it, except

Answer: Predicting

6: _______can be defined as broad basic assumptions that underlie the periodic financial statements of business enterprises.

Answer: Accounting concepts

7: An accounting concept in which assets will always equal liabilities plus owners capital is called_________

Answer: Duality Concept

8: The ________is the assumption that an entity will continue in operational existence for the foreseeable future.

Answer: going concern concept

9: ________can be defined as a tangible or intangible resource that is owned or controlled by an accounting entity, and which is expected to generate future economic benefits.

Answer: An asset

10: Motor tax on the truck and lorry can be classified as__________

Answer: Revenue expenditure

11: ________is sent by the seller if the buyer has been undercharged on the invoice.

Answer: A debit note

12: A form of payment that is convenient and safe is __________

Answer: The Cheque System

13: One of these is not a common method of valuing inventory.

Answer: stock-taking

14: The method of valuing inventory that uses a predetermined rate set by the entity management for the purpose of calculating the cost of sales and inventory is

Answer: Standard cost

15: Credit transactions not relating to goods for resale (or services)

are recorded in _________________

Answer: the journal

16: What is the process of making the balance on the bank column of a

cash book to agree with the balance on the bank statement received from the bank?

Answer: Bank Reconciliation

17: The cost accounting system of any organization is the foundation of the ——————– financial information system.

Answer: internal

18: In an organization, who needs a variety of information to plan, to control and to make decisions?

Answer: Management

19: What may be defined as Gathering of cost information and its attachment to cost objects, the establishment of budgets, standard costs and actual costs of operations, processes, activities or products; and the analysis of variances, profitability or the social use of funds

Answer: Cost Accounting

20: Costs may be classified in numerous ways, but a fundamental and important method of classification is into:

Answer: direct and indirect costs

21: Prime cost and Overheads is equal to —————————

Answer: Total cost

22: The total of direct costs is known as ___________.

Answer: Prime Cost

23: What is determined as the point where total income from sales is equal to total expenses (both fixed and variable)?

Answer: Break-Even point

24: Which of these is not an example of fixed costs?

Answer: Commission

25: Which of these is not an example of variable costs?

Answer: Factory cost

26: Which of the following is used to test the arithmetical accuracy of postings?

Answer: Trial balance

27: Which of the following errors affect the trial balance?

Answer: Error of partial reversal of entry

28: Which of the following does not affect the trial balance?

Answer: Error of omission

29: The purpose of the statement of profit or loss is to determine one of the following

Answer: Net profit

30: Given sales #34,000; return inward #1,000; opening stock #3,000; purchases #6,000: determine the gross profit.

Answer: #24,000

31: Given a gross profit of #50,000; discount received #1,000; transport #5,000; salaries #10,000:   determine the net profit.

Answer: #36,000

32: Given opening stock as #15,000; purchases #10,000; carriage inward #5,000; closing stock #11,000: what is the cost of goods sold?

Answer: #19,000

33: Assets that add value to the organization but cannot be seen are known as

Answer: Intangible assets

34: Given furniture #50,000; fittings #20,000; building #200,000; stock #60,000; debtors #40,000: determine the non-current assets.

Answer: #270,000

35: Which of the following are non-distributable reserves?

Answer: Capital reserves

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Adblock Detected

Please Enable Ads to have a smooth reading and using time