(a) What is a Bank Reconciliation Statement? (b) Explain the following terms: (i) Bank Charges (ii) Standing order (iii) Credit Transfer (iv) Dishonoured Cheque (v) Unpresented cheque (vi) Uncredited cheque
(a) Explain the following terms as used in account of not-for-profit making organization. (i)entrance fees (ii) subscription
(b) State five features of income and expenditure account.
(a) Explain the Operation of Petty Cash Book using imprest system.
(b) Outline two disadvantages of the imprest system of bookkeeping in petty cash book.
(c) State five uses of petty cash voucher.
(a) What is Accounting concept? (b) Explain the following accounting concepts: (i) Business Entity Concept (ii) Accrual Concept (iii) Going Concern Concept (iv) Consistency Concept(v) Periodicity Concept (vi) Historical Cost Concept
The cost of goods sold for the year is Le200,000 and the mark-up is 30%. The sale for the year is
- A. Le260,000
- B. Le200,000
- C. Le140,000
- D. Le60,000
A transaction that would cause the cash book balance to be less than the bank statement balance is
- A. direct debit
- B. standing order
- C. bank charges
- D. unpresented cheques
Suspense account is used in the correction of
- A. all errors in the trial balance
- B. errors that affect the agreement of a trial balance
- C. errors that do not affect the agreement of a trial balance
- D. errors that affect the accuracy of the net profit
Use the following information to answer this question
GH¢
Monthly rent payable 3,000
Rent paid on 01/01/2018 48,000
The balance of rent in the balance sheet would be
- A. current asset of GH¢36,000
- B. current asset of GH¢12,000
- C. current liability of GH¢12,000
- D. current liability of GH¢48,000
Use the following information to answer this question
GH¢
Monthly rent payable 3,000
Rent paid on 01/01/2018 48,000
Rent expense for 2018 was
- A. GH¢84,000
- B. GH¢48,000
- C. GH¢36,000
- D. GH¢12,000
Accounting concepts are rules of accounting which are to be
- A. taught in all accounting classes
- B. implemented by all professional bodies
- C. followed in the preparation of financial statements
- D. applied in correction of business errors
Provision is made in the accounts when the amount involved in the anticipated loss is
- A. too much
- B. not significant
- C. not certain
- D. well known
Wages accrued is shown in the balance sheet as
- A. an asset
- B. an income
- C. an expense
- D. a liability
Use the following information to answer this question.
Cost of assets (01/01/18) ₦ 600,000. Annual depreciation charge is 15% on reducing balance basis.
The net book value of the asset at 31/12/19 is
- A. ₦523,500
- B. ₦510,000
- C. ₦433,500
- D. ₦420,000
Use the following information to answer this question.
Cost of assets (01/01/18) ₦ 600,000. Annual depreciation charge is 15% on reducing balance basis.
Depreciation for the year 2019 is
- A. ₦180,000
- B. ₦166,500
- C. ₦90,000
- D. ₦76,500
Acid test ratio of a firm measures the
- A. profitability of a firm
- B. capital adequacy of a firm
- C. liquidity of a firm
- D. quality of debtors of a firm
The partner who partakes in the management of the firm and assumes personal responsibility for the firm’s debts is a
- A. general partner
- B. sleeping partner
- C. quasi partner
- D. limited partner
The objective of preparing departmental account is to determine the
- A. sales of each department
- B. total cost attributable to each department
- C. capital employed by each department
- D. profitability of each department
Use the following information to answer this question
₦
Creditors (01/01/19) 223,000
Creditors (31/12/19) 316,000
Credit purchases 1,426,000
Discount received 64,000
Company’s cheque dishonoured 90,000
Amount owed to creditors on 31/12/19 is
- A. ₦ 406,000
- B. ₦ 342,000
- C. ₦ 316,000
- D. ₦ 226,000
Use the following information to answer this question
₦
Creditors (01/01/19) 223,000
Creditors (31/12/19) 316,000
Credit purchases 1,426,000
Discount received 64,000
Company’s cheque dishonoured 90,000
Payment to creditors is
- A. ₦ 1,423,000
- B. ₦ 1,359,000
- C. ₦ 1,333,000
- D. ₦ 1,295,000
An amount set aside out of profit for a specific purpose is a
- A. reserve
- B. liability
- C. provision
- D. discount
The concept the enables a business to determine the actual profit or loss for a particular period is
- A. accrual concept
- B. business entity concept
- C. consistency concept
- D. going concern concept