1.

The user of accounting informatiomm who is responsible for overall

performance of the business is the ___
a. Director
b. Customer
c. Shareholder
d. Employee
2. The document prepared by the buyer and sent to the seller listing the
items to be supplied is
a. Sales order
b. Proforma invoice
c. Credit note
d. Purchase order
3. The principal book of account where accounts are classified and
summarized is
a. Journal
b. Ledger
c. Trial balance
d. Balance sheet
4. The original record containing the details of a transaction which serves
as a basis for posting is
a. general ledger
b. source document
c. subsidiary book
d. trial Balance
5. The entries for cash drawn from the bank by a proprietor for private
use is
a. Cash account; credit Bank account
b. Bank account; credit Cash account
c. Drawings Account; credit Bank Account
d. Cash Account; credit Drawings Account
6. Manufacturing account is prepared to ascertain
a. Profit on goods produce
b. Cost of goods produce
c. Cost of goods sold
d. Profit on goods sold
7. A set of rules and procedures guiding the operation of a partnership is
called partnership
a. Seal
b. Code
c. Deed
 d. Business
8. An item that would be classified as preliminary expenses in a
company’s account is
a. Formation expenses
b. General expenses
c. Subsidiary expenses
d. Major expenses
9. A unit of a company’s capital is
a. Share
b. Debenture
c. Subsidy
d. Stock
10. One of the items on the credit column of a trial balance is
a. Carriage inwards
b. Carriage outwards
c. Returns outwards
d. Returns inwards
11. The revenue expenditure of a local government includes
purchase of
a. Theatre equipment
b. Incubators
c. X-ray machine
d. Drugs
12. Which accounting concept recognizes profit as soon as goods are
delivered?
a. Realization concept
b. Match concept
c. Periodic concept
d. Going concern concept
13. Purchase of goods from Kofi was posted to the account of Koffy.
This is an error of
a. Omission
b. Original entry
c. Transposition
d. Commission
14. The communication of accounting information to external users
is one of the functions of
a. Cost accounting
b. Management accounting
c. Financial Accounting
 d. Bookkeeping
15. Capital is calculated as
a. Asset plus liability
b. Asset less liability
c. Fixed asset less current asset
d. Current asset plus fixed asset
16. A creditor of a company is someone who
a. Wants to sell shares in the company
b. Is owed by the company
c. Owes the company
d. Wants to buy shares in the company
17. An example of principal books of account is
a. Purchase journal
b. Sales journal
c. Purchases ledger
d. Promissory note
18. Which of the following errors affect the agreement of a trial
balance?
a. Error of commission
b. Error of omission
c. Error of principle
d. Single entry error
19. A concept upon which provision for doubtful debt is made at the
year end is
a. Matching concept
b. Periodicity concept
c. Consistency concept
d. Prudent concept
20. The concept of going concern would not be applicable when a
business
a. Engages in overtrading
b. Borrows funds for more than 5 years
c. Assets are valued at historical cost
d. Intendeds to wind up in the near future.
21. An example of intangible asset is
a. Motor van
b. Stock
c. Building
d. Goodwill
22. The addition of prime cost and factory overheads is production.
 a. Allowance
b. Cost
c. Expenses
d. Income
23. Bill receivable is shown in the balance sheet as an item under
a. Current liability
b. Current assets
c. Long-term liability
d. Fixed assets
24. A firm’s mark-up is 50%. The margin is
a. 33¹/2
b. 25%
c. 66²/3
d. 100%
25. Prime cost of a manufacturer is made up of
a. Direct labour, direct expenses and overhead
b. Indirect labour and factory overheads
c. Direct materials, direct labour and direct expenses
d. Indirect materials, indirect labour and indirect expenses.
26. The bookkeeping entries involved when goods are withdrawn by
the owner of a business for personal use: debit
a. Purchase Account; credit Drawings Account
b. Drawings Account; credit purchases Account
c. Goods Account; credit Owner’s Account
d. Owner’s Account; credit Goods Account.
27. The subscription in advance of $330 would be treated in the
balance sheet as
a. Current asset
b. Short-term liability
c. Fixed asset management
d. Long-term liability
28. Wages paid to office cleaners in a manufacturing company are
posted as
a. Administrative expenses
b. Direct labour cost
c. Direct expenses
d. Factory overhead expenses
29. In preparing Trading Account, the double entry for closing stock
is achieved by: debiting
a. Closing Stock Account; crediting Trading Account
 b. Trading Account; creditng Opening stock Account
c. Trading Account; crediting Sales Account
d. Opening Stock Account; crediting closing stock Account.
30. In a partnership, Kobby’s current account was debited with
#5,200 and sales credited with the same amount. This means that
Kobby had
a. Purchased #5,200 goods on cash from the firm.
b. Withdrawn #5,200 cash from the firm
c. Withdrwan #5,200 goods from firm
d. Returned goods worth #5,200 to the firm.
31. Erica started a business with opening capital of #80,000 and
closing capital of #10,000. Drawing for the period was #16,000. Erica
made a
a. Profit of #26,000
b. Loss of #26,000
c. Loss of #6,000.
d. Profit of #6,000
32. When no partnership agreement exists
a. Interest on capital is 5%
b. Salaries are paid to partners
c. Interest on drawings is 5%
d. Interest on loan 5%
33. Which of the following items form part of the equity capital of a
limited liability company?
a. Cash and bank
b. Retained earnings
c. Debentures
d. Equipment
34. Inter-departmental transfer involves the transfer of goods from
a. Central stores to the department
b. One department to another
c. One department to central stores
d. Department to customes
35. Income received in advance is shown in the balance sheet as
a. Current asset
b. Current liability
c. Intangible asset
d. Long-term liability
36. The part of the authorized share capital which has not been
allotted to members is
 a. Issued capital
b. Unissued capital
c. Called up capital
d. Uncalled capital
37. Which of the following expenses would be apportioned on the
basis of turnover in departmental account.
a. Factory overhead
b. Administrative expenses
c. Selling expenses
d. Carriage inwards
38. The central processing unit of a computer is made up of
a. Keyboard
b. Mouse
c. Display unit
d. Memory unit
39. The document used as a journal in the public sector to correct
errors is
a. Payment voucher
b. Store issue voucher
c. Adjustment voucher
d. Receipt voucher
40. The cost price of a furniture invoiced at D100,500 at 50% mark-
up is
a. D100,500
b. D67,000
c. D50,250
d. D33,500
41. A business should not not lay claim of any profit before it is
earned. This is in accordance with the
a. Consistency
b. Prudence concept
c. Dual aspect concept
d. Going concern concept
42. The accounting concept which is the basis upon which assets of a
business are valued is the
a. Consistency concept
b. Dual aspect concept
c. Historical cost concept
d. Accrual concept
43. The concept which underlies double entry bookkeeping is
 a. Accrual concept
b. Duality concept
c. Money measurement concept
d. Historical cost concept.
44. Which of the following is tangible assets?
a. Machinery
b. Lease
c. Goodwill
d. Copy right
45. Discount allowed is shown in financial statements as
a. An expense
b. An income
c. An asset
d. A liability
46. The reason for treating carriage inwards in the trading account is
because
a. It is an expense on goods sold to customers.
b. Because carriage outward is an expense
c. It does not appear in the balance sheet
d. It is an expense on good purchased
47. Wages of machine operator in manufacturing account are treated
as
a. Direct expenses
b. Direct labour
c. Indirect expenses
d. Indirect labour
48. The purchase day book is used to record
a. Cash purchases
b. Credit purchases
c. Purchases returns
d. Total purchases
49. The two column cash book records
a. Receipts and payment in cash only
b. Receipt and payment by cheque only
c. All receipts and payments both in cash and by cheque.
d. All receipts in cash only and payment by cheque.
50. A partnership is formed by
a. One person
b. Two or more individuals
c. Two or more companies
d. Two individuals only