1. The two fundamental books of accounting are

A. return inwards and outwards

B. journal and ledger

C. discounts allowed and received

D. credit note and debit note


2. Which of the following is a capital expenditure?

A. extension of building

B. repairs of generator

C. purchase of stock

D. purchase of stationery


3. Expenses accrued at the end of the accounting year is treated in the balance sheets as

A. current assets

B. current liability

C. fixed assets

D. long-term liability


4. Another name for owner's equity is

A. loan

B. debtors

C. capital

D. overdraft


5. The reduction in value of goodwill is

A. amortization

B. appreciation

C. depletion

D. depreciation


Use the following information to answer question 6 to 8



Opening stock




Carriage inwards


Returns outwards




Closing stock



6. The cost of goods sold is

A. GH¢ 16, 300

B. GH¢ 15,978

C. GH¢ 10,022

D. GH¢ 9, 978


7.  The cost pf goods available for sale is

A. GH¢ 16, 300

B. GH¢ 15, 978

C. GH¢ 10, 022

D. GH¢ 9,978


8. The gross profit is

A. GH¢ 12,300

B. GH¢ 11, 978

C. GH¢ 10, 022

D. GH¢ 9, 978



9. Which of the following is not recorded in a partnership appropriation account?

A. interest on capital

B. partners drawings

C. share of profit

D. interest on drawings


10. When a transaction is completely left out from the books, it is an error of

A. commission

B. omission

C. principle

D. compensation


11. Which of the following is not a subsidiary book?

A. sales day book

B. purchases day book

C. general journal

D. trial balance


12. In departmental accounts, rent is appointed on the basis of

A. purchases

B. floor area occupied

C. number of personnel in each department

D. volume of sales


13. The document used in government accounting to shoe evidence of cash receipt and payments is the

A. budget

B. warrant

C. vote

D. voucher





14. Which of the following errors will affect the totals of a trial balance?

A. compensating error

B. complete reversal of entry

C. error in addition

D. error of original entry


Use the following information to answer question 15 to 17

Okoro and Osula are in partnership sharing profits and losses in the ratio 3 : 2 respectively. Their respective capital were ₦7,000 and ₦5,000. Interest on capital was 5% and interest on drawings was 10%. The net profit was ₦30,000.


15. Okoro's share of the profit is

A. ₦17,070

B. ₦16,070

C. ₦11,380

D. ₦10,000


16. Osula's interest on drawings is

A. ₦2,000

B. ₦750

C. ₦700

D. ₦500


17. The total interest on capital is

A. ₦4,000

B. ₦2,740

C. ₦2,000

D. ₦750


18. Which of the following is an example pf a subsidiary book?

A. cash book

B. bank statement

C. control accounts

D. trial balance


19. Goods returned by the buyer is recorded in the seller's book as

A. carriage inwards

B. carriage outwards

C. returns outwards

D. returns inwards


20. The method of ascertaining capital from income record is by preparing the

A. cash book

B. statement of affairs

C. suspense account

D. control account


21. A petty cashier operates with an imprest of D1,000 per week. At the end of the week he had disbursed D920. How much is needed to restore the imprest?

A. D1,920

B. D1,000

C. D920

D. D80


22. Accumulated fund is also referred to as

A. surplus

B. profit

C. deficit

D. capital


23. Subscriptions owed by members of a club is a/an

A. asset

B. liability

C. profit

D. surplus


24. Prime cost is derived by adding

I. cost of raw materials consumed      II. indirect expenses

III. direct labour                                 IV. factory expenses

V. work-in-progress                            VI. direct expenses

A. I, II and IV

B. I, III and VI

C. IV, V and VI

D. II, III and V


25. The document from which entries are transferred to the purchases day book is the

A. waybill

B. credit note

C. receipt

D. invoice


26. A bookkeeper debited Motor Vehicle Account instead of Motor Expenses Account. This is an error of

A. commission

B. original entry

C. complete reversal of entry

D. principle


27. John received a cheque from Dawda, a debtor, in payment for goods purchased by Dawda on credit. The transaction will be recorded in john's

A. cash book and sals ledger

B. nominal ledger and sales ledger

C. cash book and purchases ledger

D. nominal ledger and purchases ledger


Use the following information to answer question 28 and 29


28. Cost of production is

A. ₦10,000

B. ₦9,000

C. ₦8,000

D. ₦6,000


29.Net sales for the period is

A. ₦20.000

B. ₦20,8000

C. ₦19,200

D. ₦10,000


30. The total value received by company as consideration for shares issued constitutes

A. paid-up capital

B. authorized capital

C. working capital

D. capital employed


31. The first calculating machine in data processing was

A. abacus

B. pascal

C. punched cards

D. digital


32.The going concern concept assumes that

A. every transaction is represented by a debit and credit entry

B. the currency much not change

C. the firm is a legal entity

D. the business will continue to operate indefinitely


33. Which of the following is not a purpose for which share premium may be utilized?

A. issuing fully paid bonus share

B. writing off preliminary expenses

C. settling salesman commission

D. providing for redeemable preference shares


34. A debenture is

A. a loan capital raised by a company

B. money gives to a company as a gift

C. accrued expenses

D. share capital


35. The concept which deals with the exclusion of trivial items in the accounting records is

A. constituency

B. going concern

C. materiality

D. money measurement


36. Which of the following is not an example of capital reserve?

A. share premium

B. retained profits

C. surplus on revaluation of assets

D. pre-incorporation profits


37. Goods sent to branch are recorded in the head office's books at

i. selling price

ii. cost price plus makeup percentage

iii. cost price

A. i and ii

B. i and iii

C. ii and iii

D. i, ii and iii


38. Computer memory sizes are measured in

A. kilometers

B. kilowatts

C. kilobytes

D. centimetres


39. Rent owed by a department is treated in the Balance sheet as

A. asset of the business

B. asset of the department

C. liability of the business

D. liability of the department


40. When shares are issued to the public and the issuing company has not requested for payments, it is referred to as

A. authorized capital

B. paid-up capital

C. uncalled capital

D. unissued capital


Use the following information to answer question 41 and 42



41. Net sales is

A. D41,878

B. D41,336

C. D41,284

D. d39,400


42. The total cash received from customer is

A. D68,942

B. D60,000

C. D43,220

D. D41,336


43. The diagrammatic representation of the workings of the computer program is

A. flow chart

B. desktop

C. keyboard

D. byte


44. The process of recording financial transactions of government is

A. management accounting

B. financial accounting

C. cost accounting

D. public sector accounting


45. The bank statement shows a debit balance of Le 475. After the entry of an uncredited of Le Le 800, the new balance is

A. Le 325 overdraft

B. Le 325

C. Le 1,275

D. Le 1,275 overdraft


46. The business entity concept

A. separates the owner's transactions from the business transactions

B. records transactions outside the business

C. does not separate the owner's transactions from the business transactions

D. involves other business transactions


47. Which of the following is not used in Public accounting?

A. cash book

B. trial balance

C. profit and loss account

D. bank reconciliation statement


48. The concept which states that assets are not to be recorded at their current market value is

A. money measurement

B. materiality

C. cost

D. entity


49. Provision for depreciation on delivery van is charged to

A. trading account

B. profit and loss account

C. appropriation account

D. manufacturing account


50. Which of the following date lines is correct for a profit and loss account?

A. for the year ended 31st December 2009

B. as 31st December 2009

C. for the period 31st December 2009

D. as at the year 2009