1. The distinguishing feature between a two-column cash book is

A. discount column

B. cash column

C. bank column

D. ledger folio


2. The lodgment of business cash into the business bank account is an example of

A. contra entry

B. bank reconciliation

C. self-balancing ledger

D. reversal entry


3. A credit balance is

A. a liability or an expense

B. an expenditure or an income

C. an asset or an expense

D. an income


4. Which of the following is not a characteristic of trial balance?

A. it has columns for debit and credit balances

B. total of debit balance equals total of credit balance

C. it is a statement

D. it is an account


5. The capital of a sole trader changes as a result of

A. paying wages by cash

B. equipment purchased by cheque

C. drawing by cheque

D. purchase on credit


6. The order of financial accounting process involves i. recording ii. presenting iii. collecting iv. analyzing

A. I, ii, iii and iv

B. ii, iii, i and iv

C. iii, i, ii and iv

D. iv, iii, ii and iv


7. A dishonored cheque is

A. debited in cash book

B. credited in the cash book

C. double entry in the cash book

D. credited in the bank book


8. A petty cashier received a float of GHC 84. The imprest is

A. GH¢ 204

B. GH¢ 120

C. GH¢ 84

D. GH¢ 36


9. Which of the following is not a book of original entry?

A. cash book

B. purchases ledger returns

C. returns outwards journal

D. general journal


Use the following information to answer question 10 to 12


10. The current ratio is?

A. 1: 87 : 1

B. 1 : 1 : 87

C. 1 : 2

D. 2 : 1


11. The capital employed is

A. ₦ 740,000

B. ₦ 580,000

C. ₦ 370,000

D. ₦ 280, 000


12.  The returns on capital employed is

A. 17.2%

B. 16.2%

C. 15.2%

D. 11.2%


13. The double entry principle states that

A. every debit entry must have a corresponding credit entry

B. every credit entry must have a corresponding double entry

C. every debit must have a corresponding double entry

D. every assets must have a corresponding liability



14. Which of the following is a nominal account?

A. machinery account

B. drawings account

C. debtors account

D. wages account


15. Reserves account is kept in the

A. private ledger

B. creditors ledger

C. nominal ledger

D. debtors ledger


16. An advantage of control account is

A. locating figures

B. adding figures

C. changing figures

D. locating errors


17. The accumulated fund of a not-for-profit making organization is

A. a fixed asset

B. a current asset

C. a liability

D. capital


18. A business is treated as being separated from owners. This statement is emphasized by

A. consistency concept

B. realization concept

C. going concern concept

D. business entity concept


19. Which of the following is recorded on the debit side of the Trial Balance?

A. bank overdraft

B. returns outwards

C. purchases

D. capital


Use the following information to answer the question 20 and 21

20. Purchases for the year is

A. D32,880

B. D32,780

C. D32,460

D. D31,960


21. Sales for the year is

A. D42,795

B. D42,080

C. D41,580

D. D39,720


22. Which of the following is determined in the trading account

A.  Factory overheads

B.  Cost of goods sold

C. Prime cost

D. Net profit


23. Cash receipts and payments involving discounts are entered in

A. three-column cash book

B. two-column cash book

C. analytical cash book

D. petty cash book


24. The minimum number of persons required to form a partnership business is

A. 2

B. 3

C. 5

D. 10


25. Which of the following accounts has credit balance?

A. return inwards account

B. machinery account

C. sales account

D. cash account



26. The accounting principle that states that, In the preparation of account statements, revenues are recognized as soon as goods is passed on to the customer is the

A. materiality concept

B. matching concept

C. constituency concept

D. realization concept


27. Agreement between partners is contained in the partnership

A. act

B. deeds

C. accord

D. deal


28. A low current ratio in business indicates that the business is

A. long term loan repayment problem

B. efficient in the utilization of its resources

C. unable to pay its bills on time

D. growing its net assets effectively


29. Which of following is a recurrent expenditure in public sector accounting?

A. purchase of vehicles

B. purchase of drugs

C. construction of bore holes

D. construction of buildings


30. In departmental accounts, administrative expenses are recorded in the

A. trading account

B. balance sheets

C. profit and loss account

D. profit and loss appropriation account


31. The public account committee is an organ of

A. military regime

B. parliament regime

C. presidency

D. councilors


Use the following information to answer the questions 32 and 33

32.The balance at the end of the period is

A. Le 270,000

B. Le 139, 000

C. Le 131,000

D. Le 120,000


33. The total expenditure for the period is

A. Le 319,000

B. Le 270,000

C. Le 139,000

D. Le 109,000


34. Which of the following is not an item on the credit side of the purchases ledger control account?

A. cash received

B. cash payment

C. contra settlement

D. cheque payment


35. When a business is purchased from a sole trader, the excess of the purchase price over the net assets is

A. reserve

B. goodwill

C. freehold

D. valuation price


36. A set of instructions or programs which controls the operation of a computer is

A. software

B. hardware

C. monitor

D. keyboard


37. The process of detecting, tracing and eliminating errors in a computer program is

A. reproduction

B. debugging

C. sorting

D. retrieving


38. In a non-for-profit making organization, the cash book is referred to as

A. income and expenditure account

B. receipts and payments account

C. two column cashbook

D. petty cash book


39. When the going concern concept is no longer applicable, the fixed assets are recorded at their

A. net book value

B. realizable value

C. gross value

D. revalued amount

Use the following information to answer question 40 and 41



Stock of raw materials 1/1/09


Stock of raw materials 31/12/09


Purchase of raw material


Carriage inwards


Direct labout


Factory overhead



40. The cost of raw materials consumed is

A. GH¢ 58,000

B. GH¢ 52,500

C. GH¢ 52,000

D. GH¢ 50,000


41. The prime cost

A. GH¢ 5,400

B. GH¢64,000

C. GH¢58,500

D.  GH¢52,500


42. Which of the following relates to the essence of partnership? To

A. run a charity organization

B. pursue a social objective

C. form a business for profit

D. run a religious objective


43. The basic assumption which underline the preparation of periodic financial statement is known as accounting

A. bases

B. techniques

C. concepts

D. method


44. Upon the dissolution of partnership business, the party to be settled first out of the proceeds realized is

A. unsecured creditors

B. partner's loan and advances

C. secured creditors

D. partners' capital


45. Stock account is a type of

A. nominal account

B. personal account

C. real account

D. fixed assets account


46. At the end of trading period, cost of goods sold is debited to the trading account while cost of services is debited to the

A. balance sheet

B. manufacturing account

C. trading account

D. profit and loss account


47. Which of the following is not part of prime cost of production?

A. depreciation of factory equipment

B. direct expenses

C. direct wages

D. carriage on raw materials


48. Excess of current assets over current liabilities is

A. deferred capital

B. nominal capital

C. working capital

D. authorized capital


49. A statement showing a trader's financial position as at a particular date is an

A. trading account

B. profit and loss account

C. balance sheet

D. appropriation account


50. A. trading account is prepared to disclose the

A. net profile or loss for the year

B. gross profit or loss for the year

C. accumulated fund for the year

D. gross profit on manufacturing