Try 10 free Accounting questions below, each with the answer explained. When you are ready, practise all 721 on a timed CBT screen.
The NECO SSCE (June/July) is the National Examinations Council's final exam for Nigerian secondary school students. Like WAEC, each subject has an objective paper and a theory paper, and the syllabus covers the same topics.
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The cash book shows a debit balance of ₦246,000. Cheques of ₦17,000 have not been presented, a lodgement of ₦39,000 has not been credited, and bank charges of ₦3,000 are not yet in the cash book. What balance does the bank statement show?
Answer: B. Adjusted cash book balance = 246,000 − 3,000; add unpresented cheques and deduct the uncredited lodgement: ₦221,000.
An asset costing ₦250,000 is depreciated at 10% per annum on the reducing-balance method. Calculate the depreciation for the second year.
Answer: A. Each year, 10% of the opening book value is charged. Depreciation for year 2 = ₦22,500.
Opening inventory ₦42,000, purchases ₦287,000, closing inventory ₦29,000 and sales ₦403,000. Calculate the gross profit.
Answer: A. Cost of sales = 42,000 + 287,000 − 29,000 = ₦300,000. Gross profit = 403,000 − 300,000 = ₦103,000.
An increase in trade payables 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 trade payables goes on the credit side.
Goodwill is an example of
Answer: A. Goodwill has value but no physical form.
An expense owing at the end of the year (accrual) is shown as a
Answer: D. Accrued expenses are amounts the business still owes.
Which error does NOT stop the trial balance from agreeing?
Answer: B. If a transaction is left out completely, both sides are equally affected.
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 sales ledger contains the accounts of
Answer: C. The sales ledger records amounts owed by customers.
Prime cost in a manufacturing account is
Answer: A. Prime cost is the total of direct costs.
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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 |