Try 10 free Accounting questions below, each with the answer explained. When you are ready, practise all 721 on a timed CBT screen.
The GCE is the version of the school-leaving exam for private candidates, usually held towards the end of the year. It follows the same syllabus as the May/June exam, with objective and theory papers.
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The cash book shows a debit balance of ₦232,000. Cheques of ₦30,000 have not been presented, a lodgement of ₦24,000 has not been credited, and bank charges of ₦2,000 are not yet in the cash book. What balance does the bank statement show?
Answer: D. Adjusted cash book balance = 232,000 − 2,000; add unpresented cheques and deduct the uncredited lodgement: ₦236,000.
An asset costing ₦150,000 is depreciated at 10% per annum on the reducing-balance method. Calculate the depreciation for the second year.
Answer: C. Each year, 10% of the opening book value is charged. Depreciation for year 2 = ₦13,500.
Opening inventory ₦30,000, purchases ₦166,000, closing inventory ₦12,000 and sales ₦244,000. Calculate the gross profit.
Answer: B. Cost of sales = 30,000 + 166,000 − 12,000 = ₦184,000. Gross profit = 244,000 − 184,000 = ₦60,000.
An increase in purchases is recorded on which side of its ledger account?
Answer: A. Assets, expenses and drawings increase on the debit side; capital, liabilities and income increase on the credit side. So an increase in purchases goes on the debit side.
The accounting equation is
Answer: C. What a business owns is financed by the owner and creditors.
Which error does NOT stop the trial balance from agreeing?
Answer: B. If a transaction is left out completely, both sides are equally affected.
An expense owing at the end of the year (accrual) is shown as a
Answer: D. Accrued expenses are amounts the business still owes.
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.
Prime cost in a manufacturing account is
Answer: A. Prime cost is the total of direct costs.
The sales ledger contains the accounts of
Answer: C. The sales ledger records amounts owed by customers.
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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 |