Try 10 free Accounting questions below, each with the answer explained. When you are ready, practise all 721 on a timed CBT screen.
The UTME is JAMB's computer-based entrance exam for Nigerian universities, polytechnics and colleges of education. You sit Use of English and three other subjects in 2 hours: 60 questions for Use of English and 40 for each other subject.
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The cash book shows a debit balance of ₦91,000. Cheques of ₦4,000 have not been presented, a lodgement of ₦50,000 has not been credited, and bank charges of ₦500 are not yet in the cash book. What balance does the bank statement show?
Answer: A. Adjusted cash book balance = 91,000 − 500; add unpresented cheques and deduct the uncredited lodgement: ₦44,500.
An asset costing ₦730,000 is depreciated at 10% per annum on the reducing-balance method. Calculate the depreciation for the second year.
Answer: D. Each year, 10% of the opening book value is charged. Depreciation for year 2 = ₦65,700.
Opening inventory ₦12,000, purchases ₦476,000, closing inventory ₦6,000 and sales ₦628,000. Calculate the gross profit.
Answer: D. Cost of sales = 12,000 + 476,000 − 6,000 = ₦482,000. Gross profit = 628,000 − 482,000 = ₦146,000.
An increase in trade receivables is recorded on which side of its ledger account?
Answer: B. Assets, expenses and drawings increase on the debit side; capital, liabilities and income increase on the credit side. So an increase in trade receivables goes on the debit side.
Returns inwards are also called
Answer: B. Goods returned by customers come back in.
An expense owing at the end of the year (accrual) is shown as a
Answer: D. Accrued expenses are amounts the business still owes.
When a trial balance does not agree, the difference is placed in a
Answer: A. The suspense account holds the difference until errors are found.
Where there is no partnership agreement, profits and losses are shared
Answer: A. The Partnership Act 1890 provides for equal sharing.
The petty cash system in which the cashier is refunded what was spent is the
Answer: A. The float is restored to the same amount each period.
The book of original entry for credit purchases is the
Answer: C. Credit purchases are first recorded in the purchases journal.
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Create a free accountQuestions in the MyGradePrep bank for each topic.
| Topic | Questions |
|---|---|
| Basic concepts | 125 |
| Depreciation | 122 |
| Final accounts | 122 |
| Ratios | 122 |
| Bank reconciliation | 61 |
| Partnership | 61 |
| Manufacturing accounts | 61 |
| Classification of accounts | 21 |
| Double entry | 15 |