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 ₦37,000. Cheques of ₦12,000 have not been presented, a lodgement of ₦22,000 has not been credited, and bank charges of ₦4,000 are not yet in the cash book. What balance does the bank statement show?
Answer: D. Adjusted cash book balance = 37,000 − 4,000; add unpresented cheques and deduct the uncredited lodgement: ₦23,000.
An asset costing ₦480,000 is depreciated at 20% per annum on the reducing-balance method. Calculate the depreciation for the third year.
Answer: A. Each year, 20% of the opening book value is charged. Depreciation for year 3 = ₦61,440.
Opening inventory ₦10,000, purchases ₦100,000, closing inventory ₦44,000 and sales ₦260,000. Calculate the gross profit.
Answer: A. Cost of sales = 10,000 + 100,000 − 44,000 = ₦66,000. Gross profit = 260,000 − 66,000 = ₦194,000.
An increase in cash 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 cash goes on the debit side.
Returns inwards are also called
Answer: B. Goods returned by customers come back in.
An expense paid in advance is shown in the statement of financial position as a
Answer: C. Prepayments are owed back to the business as a benefit.
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.
In a not-for-profit organisation, the equivalent of capital is the
Answer: D. Clubs and societies use an accumulated fund.
The main purpose of a trial balance is to
Answer: D. A trial balance tests whether debits equal credits.
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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 |