1. The objectively of accounting information is enable users to

A. prepare the financial statements

B. value stock

C. make decisions

D. prepare budgets


2. Trade discounts are given for

A. bulk purchases

B. prompt payment

C. quick delivery

D. cash payment


3. When closing stock is overstated, it would reduce,

A. cost of sales and increase gross profit

B. gross profit and increase cost of sales

C. purchases and increases sales

D. sales and increase purchases


4. Which of the following is not a source document?

A. journal paper

B. sales invoice

C. debit note

D. credit note


5. A fixed assets fully written-down by a trader is now considered to be worth ₦5,000. The double entry required to reflect this is debit

A. asset account credit purchase account

B. asset account credit capital account

C. capital account credit asset account

D. capital account credit profit and loss account


6. Which of the following is a book of ordinary entry?

A. ledger

B. balance sheet

C. bank statement

D. sales journal


7. A balance sheet shows only

A. fixed assets and current assets

B. assets and long term liabilities

C. assets and liabilities

D. assets and capital


8. The process of entering transaction from one book to another is

A. reading

B. posting

C. numbering

D. listing


Using the following information question 9 and 10













Cash paid to trade creditor GH¢ 8,000

Mark – up on cost of sales 20%


9.  The total purchases is

A. GH¢ 8,700

B.  GH¢7,300

C. GH¢ 6,600

D.  GH¢ 5,300


10. The cost of sales is

A. GH¢ 8,200

B. GH¢ 7,300

C. GH¢ 5,500

D. GH¢ 4,800


11. Which of the following is a trading account item?

A. discount allowed

B. discount received

C. carriage outwards

D. carriage inwards


12. The addition of prime cost and factory overhead is

A. total factory overheads

B. market value of goods produced

C. cost of goods produced

D. work-in-progress


13. Capital receipt is collected

A. on sales of motor vehicle

B. on sales of stock in trade

C. from trade debtors

D. from trading activities


14. Which of the following is an example of factory overheads?

A. salary of marketing officer

B. salary of production officer

C. salary of accounting officer

D. wages of machine operator


15. Osa started business with Le 40,000 cash. The accounting entry is debit

A. cash account; credit capital account

B. capital account; credit cash account

C. purchases account; credit cash account

D. expenses account; credit capital account


16. Branch stock account is used to determine the

A. net value of goods sent to branch

B. gross profit of the branch

C. branch credit sales

D. branch net profit or loss


17. The name given to a budget in public service accounting is

A. vote

B. subvention

C. general order

D. estimate


Use the following information to answer question 18 to 20


16. The amount of working capital is

A. N 11,000

B. N 7,000

C. N 4,000

D. N 3,000


19.  Working capital ratio is

A. 5 : 4

B. 5 : 3

C. 4 : 5

D. 1 : 1


20.  Acid test ratio is

A. 5: 4

B. 5: 3

C. 4 : 5

D. 1 : 1


21. Which of the following is not prepared by a partnership?

A. trading account

B. profit and loss account

C. income and expenditure account

D. profit and loss appropriation account


22. A partner who only makes capital contribution but does not take part in the management of the partnership business is a/an

A. ordinary partner

B. limited partner

C. dormant partner

D. nominal partner


23. Which of the following is a component of prime cost?

A. depreciation

B. royalty

C. factory rent

D. factory electricity


24. The concept which establishes the rule for the periodic recognition of revenue as soon as it is capable of objective measurement is

A. going concern

B. entity

C. consistency

D. realization


25. Rent accrued in 2009 was D140, in 2010, D900 was paid while D160 was outstanding. Rent for 2010 was

A. D1,200

B. D1,060

C. D920

D. D880


26. Which of the following is not an input device?

A. card reader

B. paper top reader

C. alpha-numeric keyboard

D. line partnership


27. The equivalent of income and expenditure account in a trading concern is

A. trading account

B. profit and loss account

C. appropriation account

D. balance sheet


28. The term used to denote the capital of a not-for-profit making organization is

A. annuity fund

B. nominal capital

C. circulating capital

D. accumulated fund


29. The portion of authorized capital that has been allotted to subscribers

A. called up capital

B. paid up capital

C. issued capital

D. nominal capital


30. Partners whose liabilities are restricted to their financial contribution to the partnership in the event of winding up are

A. ordinary partners

B. limited partners

C. dormant partners

D. sleeping partners


31. If creditors at 1\1\10 were Le 3,000; creditors at 31/12/10 Le 5,500 and payments to creditors Le 29,000. The purchases figure for 2010 is

A. Le 34,500

B. Le 32,000

C. Le 31,500

D. Le 26,500


32. Which of the following is not found in the personal ledger?

A. debtors account

B. creditors account

C. capital account

D. nominal account


33. The sales ledger control account is also referred to as

A. bought ledger control account

B. purchases account

C. total debtors account

D. total creditor account


Use the following information to answer 34 and 35



34. Capital expenditure for the year was

A. Le 545,000

B. Le 490,000

C. Le 450,000

D. Le 300,000


35. The amount of recurrent expenditure was

A. Le 245,000

B. Le 175,000

C. Le 135,000

D. Le 80,000


36. An increases in the provision for doubtful debts results is a\an

A. increase in the gross profit

B. decrease in the gross profit

C. decrease in the net profit

D. increase in the net profit


37. Which of the following errors affects the agreement of a Trial balance?

A. wrong addition in the sales account

B. crediting a purchase to the sales account

C. failure to enter sales in the books

D. posting the purchase of a van to the debit side of the purhases account


38. The excess of value of assets over the purchase consideration on acquisition of a business is credited to

A. share capital account

B. goodwill account

C. capital reserved account

D. general reverse account



39. Share of ₦3 nominal value were issued at a price ₦4. The difference of ₦1 is a

A. commission

B. discount

C. premium

D. bonus


40. Which of the following is not the purpose of a control account?

A. check on errors of addition

B. locate errors

C. locate missing figures

D. monitor the cash book


41. Which of the following is not part of the central processing unit of a computer?

A. arithmetical and logical unit

B. memory unit

C. input unit

D. control unit


42. The double entry to record the proceeds on disposal of assets in debit

A. bank account; credit asset disposal account

B. asset disposal account; credit bank account

C. provision for depreciation account; credit asset disposal account

D. asset disposal account; credit provision for depreciation account


43. An underwriter for a company's share is paid

A. interest

B. commission

C. dividend

D. salary


44.  Which of the following is a form of memorandum of association

A. names of directors

B. appointment of directors

C. object of the business

D. payment of dividend


45. Administrative, selling and distribution expenses in a manufacturing firm are recorded in

A. trading account

B. manufacturing account

C. profit and loss account

D. balance sheet


46. Which of the following is not a revenue to a local government?

A. fines

B. licenses

C. personal ncome tax

D. tenement rates


Use the following information to answer 47 and 48

47. The capital is

A. D1,440

B. D6,580

C. D5,380

D. D1,000

48. The liability is

A. D7,580

B. D6,580

C. D5,380

D. D1,000


49. Which of the following is not an item in the profit and loss account?

A. drawings

B. interest

C. salaries

D. bad debts


50. A loss made on the disposal of a fixed assets is debited to

A. sales account

B. purchases account

C. profit and loss account

D. capital account