1. The source document used to make entries in the purchase day book is

A. debit note

B. credit note

C. invoice

D. receipt


2. A book that contains individual accounts of suppliers is the

A. purchase ledger

B. general ledger

C. nominal ledger

D. sales ledger


3. In the operation of an imprest system of petty cash, the

A. petty cashier pays all the expenses

B. petty cashier pays money to the accountant

C. petty cashier regularly begins each period with the same amount of money

D. main cashier accounts to the petty cashier for some expenses made by him


4. An example of a credit entry in a profit and loss account is

A. carriage inwards

B. carriage outwards

C. discounts allowed

D. discounts received


5. Which of the following subsidiary books involves cash movement?

 A. Sales day book

B. Purchase day book

C. Returns inward book

D. Petty cash book


6. The accounting treatment for dishonoured cheque is; debit

A. Customer’s Account; Credit Bank Account

B. Bank Account; Credit  Customer’s Account

C. Customer’s Account; Credit Sales Account

D. Sales Account; Credit Customer’s Account


7. Net turnover is referred to as

A. Purchases

B. Asset

C. Sales

D. profits


8.Which of the following transactions will results in disagreement between the cash books and the bank statement?

A. Selling of goods on credit to a customer

B. Withdrawal of goods by the proprietor for his personal use

C. Cheque paid directly into the bank account by a customer

D. Omission of purchase received from a supplier


9. Purchases Account is overcast by N200, While Wage Account is undercast by N200. This os

A. an error of omission

B. a compensating error

C. an error of commission

D. an error of principle


10. Which of the following is used to record the disposal of a fixed asset?

A. Journal Proper

B. Petty Cash book

C. Sales Day book

D. Purchases Day book


Use the following to answer question 11 and 12


Cost of motor vehicle ---1/1/12                                     85,000

Residual value                                                                5,000

Estimated useful lifespan 10 years   

The business makes use of the straight line method of providing depreciation


11. The annual depreciation is

A. N9,000


C. N8,000

D. N6,500


12.The accumulate depreciation as at 31/12/2013 is

A. N18,500

B. N17,000

C. N16,600

D. N8,000


13. An error in principle is made if,

A. An entry has been made in the wrong class of account

B. a transaction has been completely omitted

C. an entry has been on the wrong side of the two accounts concerned

D. a transaction is entered in both accounts for the wrong amount


14. Which of the following is entered in the general journal?

A. Purchase of goods

B. Sales of goods on credit

C. Returns inwards

D. Acquisition of fixed assets


15.The cost of carriage outward is classified as

A. a selling and distribution expense

B. an administrative expense

C. a trading expense

D. a finance expense


16. The purchase of ten ceiling fan by Akpan Electronic Enterprises will be recorded as

A. An acquisition of fixed asset

B. an expense in its general office expense account

C. part of capital in the capital account

D. an acquisition of stock


17. Which of the following accounts would appear in the nominal ledger?

I. Sanison’s account (a debtor)

II. Motor vehicle account

III. Sales Account

IV. Rent and rates account

A. I, II and III only

B.I, III, IV only

C. II, III and IV only

D. III and IV only


18. The sum of direct cost in a manufacturing account is

A. production cost

B.prime cost

C. total cost

D. finance cost


19. Net profit in a business is

A. the amount of money  taken out of the business by the owner

B. the cash in the business bank account

C. the difference between sales and cost of sales

D. the revenue less cost of sales and expenses


20. An example of a self balancing account is the

A. suspense account

B. creditor’s account

C. control account

D. debtor account


Use the following information to answer 21 and 22

The total sales of a business was GH¢2, 160,000

The average mark up for the year was 50%


21. The gross profit is

A. GH¢2,160,000

B. GH¢1,440,000

C. GH¢1,080,000

D. GH¢ 720,000


22. The cost of sales is

A. GH¢ 2,160,000

B. GH¢ 1,440, 000

C. GH¢ 1, 080,000

D. GH¢ 720,000


23. Which of the following is not an administrative expenses in a manufacturing  organization?

A. Discount allowed

B. office electricity

C. Stationery

D. Insurance


24. When an asset is sold, the entries for the accumulated depreciation are: beit

A. Asset Disposal Account ; credit Provision for Depreciation Account

B. Provision for Depreciation Account; Credit Asset Disposal Account

C.  Fixed Asset Account; Credit  Asset Disposal Account

D. Asset Disposal Account; Credit Fixed Asset Account


25, A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?

A. D23,000

B. D 28,000

C.D 23,000

D. D 5,000


26. In a not-for-profit profit making organization when the total income is less than than the total expenditure, the difference  is a

A. surplus

B. shortfall

C. loss

D. deficit


27. The accounting concept underlying the treatment of personal expenses of a business owner as drawing is

A. periodicity

B. accrual

C. entity

D. materiality


28. Which of the following items is not contained in the Receipts and Payments in Accounts?

A. Subscription paid in advance

B. stock paid for in advance

C. Outstanding wages and salaries

D Donations


29. The concepts that states that a business should not lay claim to any profit before it is earned with certainty is

A. consistency report

B. prudence concept

C. accrual concept

D. going concern concept


30. When shares are issued below nominal value, the excess above the nominal value is

 A. credited to Profit and Loss Account

B. debit to Share Premium Account

C. credited to Shared Capital Account

D. credited to share Premium Account


31. Shares issued below the nominal value are referred to as shares at

A. Premium

B. discount

C. face value

D. cumulative value


32. Use the following information to answer question 32 to 34



Aye                                                                                         20,000

Bee                                                                                          30,000


Aye                                                                                                     8,000

Bee                                                                                                      2000

Profit for the year                                                                               10,000

Interest on capital ---- 6%

Interest on drawing ----10%

Profit sharing is in the ratio of capital


32. The divisible profit is

A. Le 14,000

B. Le 12,000

C. Le 10,000

D. Le 8,000


33. Aye’ share of profit is

A. Le 6,000

B. Le 4,800

C. Le 4,000

D.Le 3,000


34. Bee’s share of profit is

A. Le 8,000

B. Le 6,000

C. Le 4,000

D. Le 3,200


35. The accounting ratio used to measure the average number of days for which supplier remain unpaid is

A. stock turnover

B. creditors’ payment period

C. debtors’ collection period

D. return on capital employed


36. When the purchase consideration exceeds the value of business the difference is

A. profit

B. discount

C. goodwill

D. reserve


37. The primary classification of government expenditure is based on

A. programs

B. funds

C. activity

D. project


38. An example of input device of a computer is

A. an optical character reader

B. a graph plotter

C. a visual display unit

D. a printer


39. The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is

A. business entity

B. materiality

C. dual aspect

D. realization


40. A company made a net profit of N2,000,000 for the year and its net profit percentage is 25%. What is the total sale of the year?

A. N8,000,000

B. N6,000,000

C. N800,000

D. N500,000

41. Which of the following information is recorded in the returns outward books

A. Goods purchased on credit and subsequently returned to supplier

B. Fixed asset brought on credit and subsequently returned to supplier

C. cash payment received from a customer and subsequently returned  to a supplier

D. Goods sold to a customer and subsequently returned to the business


Use the following information to answer question 42 and 43


Branch stock account (at selling price)                                                           346,000 – debit

Branch mark –up account                                                                               62,000 – debit


42 Calculate the stock to be included in the balance sheet at the year end

A. D408,000

B.D 346,000

C.D 284,000

D. D62,000


43. The concept applied in answering question 42 above is

A. matching

B. consistency

C. prudence

D. entity


44. Subscription in advance is classified in the balance sheet as

A. an asset

B. a liability

C. a deficit

D. a surplus


45. Which of the following items is not treated in the Profit and Loss Account?

A. Office expenses

B. Salaries and allowances

C. Carriage inwards

D. Discounts allowed


46.The document prepared  by a local/district government to present its annual estimates for a planning period is

A. a balance sheet

B. budget

C. an income and expenditure

D. a cash book


47. A manufacturing account is drawn up by

A. firm providing personal services

B. firms engaged solely in buying and selling of goods

C. firms which makes and sell articles

D. non –trading organization


48. Which of the following is not a factory overhead cost

A. Manufacturing wages

B. Factory rent

C. Depreciation of machinery

D. Salary of factory guard


49. A collection of field s relating to one logical definable unit of business information is known as

 A. data

B. character

C. byte

D. record


50. The principle of double entry book-keeping states that

A. credit debtor must be a creditor

B. every account debited must be immediately credited

C. for every debit entry, there must be a corresponding credit entry

D. to every double debit, there must be a double credit