1. External users of accounting information include

A. employee

B. management

C. bankers

D. directors


2. Every asset should have

A. a non monetary value

B. tangible and intangible qualities

C. monetary cost and future benefit

D. an inadequate monetary value


3. Which of  the following are impersonal accounts

 I. Investment

II. Creditors

III. Premises

IV. Debtors

IV. Salaries

A. I, II and IV

B. I, III and V

C. II and IV

D. III and V


4. Nwoye buys stock and pays by cheque. The entries in the books of Nwoye is Debit

A. Purchase, Credit cheque

B. Purchase, Credit bank

C. Bank, Credit Purchase

D. Cheque,  Credit Purchase



5. A bank statement shows an overdraft of GH¢190,000. kofi, a debtor paid GH¢400,000 into the account. The new bank balance

A. GH¢590,000

B. GH¢ 590,000 overdrawn

C. GH¢210,000

D. GH¢ 210,000 overdrawn


6.. Which of the following errors and errors of commission

I . A cheque paid to Adom debited to Adam’s Account

II.  Credit sales to Eva credited  to sales account but debited to Eva’s account

III. Furniture repairs debited to furniture account

IV. Credit purchases from Manu credited to Manu’s account

A. I and II

B. I and IV

C. II and IV

D. III and IV


7. A petty cash amount has an imprest of GH¢6,000. If GH¢2,000 was left, how much will be re-imbursed at the end of the period

A. GH¢8,000

B. GH¢ 6,000

C. GH¢4,000

D. GH¢2,000


8. Cash paid to Jake  N2,500 was entered on the credit side of his account and debited to cash account. This is an error of

A. Principle

B. Commission

C. Complete reversal of entries

D. Original entry


9. One of the Purchases invoices of Mr Dauda showed D96,240 less 12½%  trade discount  of 20%. Since Mr Dauda paid the amount due within the credit period, the amount paid is

A. D77,368

B. D73, 187

C. D67, 368

D.D63, 157


10. Bank reconciliation statement  is prepared to reconcile the difference between

A. bank statement and credit transfer

B. cash book and bank transfer

C. bank statement and cash transfer

D. cash book and bank statement


11. Which of the following items of expense involves actual cash payment?

A. Discounts allowed

B. Provision for depreciation

C. Carriage outwards

D. Allowance for doubtful debts


12. In the preparation of the Trading Account of Omuya Ltd, the company included credit sales of N18,000 made during the year. The concept guiding this treatment is the

A. materiality concept

B. dual aspect concept

C. matching concept

D. money measurement concept


13. In according context, purchases refer to

A. good bought and paid for only

B. goods bought for resale only

C. goods bought on credit only

D.goods bought to be used in the firm only


14. Which of the following items is a current liability?

A. Stock of raw materials

B. Cash in hand

C. Bills payable

D. Cash at bank


15. The balance sheet is prepared to reveal

A. the result of the operation for the period under reviews

B. the financial position of the business

C. the arithmetical accuracy of the ledger accounts

D. the account and payments


16. The excess of cost of goods sold over net sales is

A. gross profit

B. gross loss

C.net profit

D. net loss

Use the following information to answer question 17 and 18


Rent prepaid 1/01/2014                                              600

Rent paid 31/2/2014                                                   3,000

Rent prepaid 31/12/2014                                            400


17. Rent for 2014 chargeable to the profit and loss account is

A. N4,000

B. N3,200

C. N3,000

D. N2,800


18. The balance sheet as at 31st December will show

A. current asset of N600

B. current asset of N400

C. current liability of N400

D. current liability of N600 #######################(error)


19. Which of the following would result from an increase in the provision of doubtful debts?

A.  A decrease in gross profit

B. A decrease in the net profit

C. An increase in gross profit

D. An increase in net profit






Use the following information to answer question 20 to 21


Acquisition cost of companies                                                            60,000

Installation cost                                                                                   20,000

Estimated residual value                                                                     4,000

Estimated useful life                                                                                       5 years


20. The depreciated value of computer is

A. Le 80,000

B. Le 96,000

C. Le 100,000

D. Le 104,000


21. The total cost of the computers is

A. Le 80,000

B. Le 96,000

C. Le 100,000

D. Le 104,000


22. Which of the following expenses constitutes prime cost?

I. Direct labour cost

II. Factory overheads

III. Hiring of machine for production

IV. Warehouse rent

A. I and II only

B.I and III only

C. I, II and III only

D. I, II and IV only


23. Partly manufactured goods are treated in the balance sheet of a cmanufacturing company as

A. current assets

B. fixed assets

C. current liabilities

D. long term liabilities


Use the following information to answer 24 to 25


Cash purchase                                                             29,641

Creditors 1/1/14                                                          2,473

Creditors 31/12/14                                                      3,117

Cash paid to creditors                                                 127,345

Discount received                                                       4,211


24. The credit purchase is

A.  D 161,841

B. D156,986

C. D134,673

D. D 132,200


25. The total purchase is

A.D161, 841

B. D156, 986

C. D 134,673

D. D132, 200


26. Offei, a petty trader, sold goods for GH¢ 36,240. The gross profit being 33 1/3% on cost. What was the cost price

A. GH¢ 45,300

B. GH¢ 28,992

C. GH¢27,180

D. GH¢ 24,160


27. Which of the following is a credit item in an income and Expenditure account?

A. Electricity

B. Donations

C. Stationery

D. Bar Supplier


28. Purchases of fixtures and fittings by a club is recorded  in the  

A. Receipts and payment Account only

B. Income and Expenditures only

C. Receipts and Payments Account and Balanced Sheet

D. Inceome and Expenditure Account and Balance sheet


29. The concept which states that the affairs of a business is to be treated as being separate from the private activities of the owner is

A. realisation concept

B. business entity concept

C. cost concept

D. dual aspect concept


30. Where fixed capital are maintained in a partnership, share of profit are

A. credited to partners capital accounts

B. credited to partners current accounts

C. debited to partners capital accounts

D. debited to partners current accounts


31. In the absence of  a partnership agreement, additional capital contributions by parners attract interest of

A. 5%

B. 10%

C. 12%

D. 15%


32. In preparing partnership accounts, interests on drawing is debited to current  and credit to

A. capital accounts

B. appropriation account

C. drawings account

D. profit and loss account


33. When allotments have been fully paid, subscribers are referred to as

A. allotters

B. applicants

C. non members

D. shareholder


Use the following information to answer 34 to 36

Oruma Ltd issued 300,000 ordinary shares at N1.00 each. Application were received for 200,000 shares and all those who applied paid in full

34. The subscribed share capital is

A. N300,000

B. N250,000

C. N200,000

D. N160,000


35. The unsubscribed share capital is

A.  N300,000

B.  N200,000

C. N150,000

D. N100,000


36.. The authorised  share capital is

A. N300,000

B. N250,000

C. N200,000

D. N150,000


37. The Branch Current Account records

A. head office transaction with the branch

B. branch transaction with the head office

C. goods sent to branch at selling price

D. cash received from branch as sales


38. The entries for credit sales at branch where the Head office keeps all records are Debit

A. Branch Stock Account, Credit Branch Debtors Account

B. Branch Debtors Account; Credit Branch Stock Account

C. Branch Debtors Account; Credit Branch Adjustment Account

D. Branch Adjustment Account, Credit Debtors Account


39. The real cost of goods returned by branch to head office is debited  to

A.  Branch stock Adjustment Account

B.Goods sent to branch Account

C. Branch stock Account

D. Branch profit and Loss Account


40. Which of the following is a source of local government revenue?

A. Excise duties

B. Market dues

C. Import duties

D. Loans and grants


41. The transfer of money from one sub-head to another in the public sector is

A. budgeting

B. allocation

C. debited to Discounts Allowed Account

D. credited to Discount Allowed Account


42. The total of the discount received column in the three column cash book is

A. debit to Discount Received Account

B. credited to Discount Received Account

C. debited to Discounts Allowed Account

D . credited to Discounts Allowed Accounts


43. Which of the following expenses is apportioned between departments based on sales

A. Discount received

B. Electricity

C. Carriage inwards

D. Carriage outwards


44. In the purchase of a business, a buyer has paid more than the value of the net assets of the business. The excess payment is referred to as

A. bonus

B. goodwill

C. net profit

D. premium


45. Asset which are really convertible into cash are termed as

A. Liquid asset

B. fixed assets

C. intangible assets

D. tangible assets


46. A loan to a company under company’s seal is

A. fixed deposit

B. mortgage

C. bond

D. debenture


47. Debts that a firm is unable to recover are debited to bad Debts Account credited to

A. Supplier Account

B. Sales Account

C. Customer Account

D.  Cash Account


48. When a fixed asset is disposed off, the accounting entries to write off the asset are Debit

A. Profit and Loss Account, Credit Asset Disposal Account

B. Asset Disposal Account, Credit Profit and Loss Account

C. Asset Disposal Account, Credit Asset Account

D. Profit and Loss Account, Credit Provision for Depreciation


49. The financial statement which is an expression of the accounting equation is the

A. Trading Account

B. Profit and Loss Account

C. Balance Sheet

D. Statement of cash flow


50. Which of the following error will affect the agreement of the trial balance

A. Error of original entry

B. Error of Commission

C. Error of transportation

D. Error of Omission