SSCEAccounting 2001

1. The income accruing to debenture holders is called

A. dividend

B. net profit

C. shares

D. interest

 

2. The amount by which assets exceed specific liabilities is called

A. reserve

B. provision

C. premium

D. bonus

 

3. Which of the following has a debit balance at the end of the year?

A. rates prepaid account

B. bank loan account

C. income received in advance account

D. ordinary share capital account

 

4. Which of the following is not an example of a fictitious asset?

A. Raw materials stock

B. debit balance of profit and loss account

C. preliminary expenses f a limited company

D. expenditure on incorporation carried forward

 

5. Prime cost consist of

A. direct material and direct labour cost

B. direct material, direct labour and direct expenses

C. direct material, direct labour, direct expenses overhead

D. direct material and direct expenses

 

Use the following information to answer  question 6 to 8

Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:

6. Amount to be posted to the personal ledger is

A. N765

B. N585

C. N536

D. N517

 

7. Amount spent on stationery is

A. N765

B. N585

C. N538

D. N437

 

8. Amount to be reimbursed at the end of the month is

A. N4,000

B. N3,728

C. N3,483

D. N1,842

 

9. Which of the following explains the short term solvency of a company?

A. acid test ratio

B. debtor to equity ratio

C. net profit margin ratio

D. gross profit margin ratio

 

10. Which of the following is a fictitious asset?

A. overdraft

B. cash in hand

C. reserves

D. preliminary expenses

 

11. A subsidiary record is a book

A. of ordinary entry

B. containing the ledgers

C. found in the journal

D. containing the balance sheet

 

12. In which ledger is the control account prepared?

A. Nominal ledger

B. general ledger

C. sales ledger

D. purchases account

 

13. Suppliers personal accounts are found in the

A. purchases ledger

B. sales account

C. purchases account

D. sales ledger

 

14. Commission of N5,000 to a sales representative is debited to salaries account. This is an error of

A. reversal of entries

B. principle

C. commission

D. compensation

 

15. Purchase of goods of N2,000 was treated as sales and entered in the sales day book and had been carried through the account as such. This error of

A. principle

B. omission

C. reversal of entries

D. original entries

 

 

16. Which of the following is not correct?

A. increases in asset accounts are entered on the debit side

B. decreases in assets accounts are entered on the credit side

C. increases in liability accounts are entered on the credit side

D. decreases in liability accounts are entered on the credit side

 

17. A business firm incurs labour cost in installing machinery. This should be treated as

A. salaries account

B. machinery account

C. debtors account

D. creditors account

 

18. Which of the following is an impersonal nominal account?

A. Salaries Account

B. Machinery Account

C. Debtors Account

D.  Creditors Account

 

Use the following information to answer the given question 19 and 20

John Udoh started business on 1^st January, 1998 with the following assets

	N
Motor Van	120,000
Buildings	300,000
Stocks of goods	40,000

In addition, he had cash ofN60,000 out of which N20,000 was borrowed from a friend.

 

19. The capital of the business is

A. N520,000

B. N500,000

C. N480,000

D. N460,000

 

20. The liabilities of the business amount to

A. N80,000

B. N60,000

C. N40,000

D. N20,000

 

21.  What is the effect on a firm for making a payment of N10,000 to creditor? its liabilities

A. decrease and its assets decrease

B. increase and its assets decrease

C. decrease and its asseys increase

D. increase and its assets increase

 

22. The depreciation method that allocates higher value to the use of an asset in its earlier years is

A. diminishing balance method

B. revaluation method

C. fixed instalment method

D. straight line method

 

23. Given a purchases invoice showing 5 items at N40,000 each less trade discount of 25% and cash discount of 10% the amount to be paid within the credit period is

A. N200,000

B. N180,000

C. N135,000

D. N75,000

 

24. The purchases Ledger control Account is also referred to as

A. Total creditors Accounts

B. Total ebitors Account

C. Cash Account

D. Personal Account

 

25. Which of the following is a primary source of entry into the debtors ledger?

A. suppliers invoice

B. returns outwards notes

C. sales invoices

D. payment vouchers

 

Use the following information to answer question 26 and 29

	N
Opening Stock of Raw Material	8,000
Purchases	45,000
Closing Stock of Raw Materials	9,500
Direct wages	6,400
Indirect wages	6450
Depreciation – plant and Machinery	3,200
Factory rent and rates	350
Opening work – in – progress	3,250
Closing work – in – progress	3750

 

26. Cost of raw materials consumed is

A. N53,000

B. N45,500

C. N45.000

D. N43,500

 

27. Prime cost is

A. N53,000

B. N52,750

C. N49,950

D. N46,300

 

28. Factory cost of production is

A. N56,300

B. N53,000

C. N52,750

D. N45,500

 

29. Production cost is

A. N57,300

B. N56,300

C. N55,800

D. N53,000

 

30. The accounting entries for recording cash withdrawal by the proprietor for personal use are, debit

A. cash and credit purchases

B. purchases and credit drawings

C. purchases and credit cash

D. drawings and credit cash

 

31. The head office usually issues goods to branches at

A. prime cost

B. production cost

C. net realisable value

D. cost price

 

32. Which of the following does not relate to government accounting system?

A. vote

B. trial balance

C. consolidated fund

D. profit and loss account

 

Use the following information to answer question 33 to 35

Jeng Limited disposed a fixed asset in 1999 for N2,000. The asset was purchased in 1996 at a cost of N10,000 and has been depreciated at the rate of 20% per annum using the straight line method.

 

33. What was the book value when the asset was sold?

A. N8,000

B. N6,000

C. N4,000

D. N2,000

 

34. What is the correct entry for the sale of the asset in the Asset Account and Disposal of Asset Account? Debit

A. Fixed Asset Account N4,000, credit Disposal of Assets Account N4,000

B. Disposal of Asset Account N4,000, credit fixed Access Account N4,000

C. Disposal of Asset Account N2,000, credit Fixed Asset account N2,000

D. Fixed Asset Account N2,000, credit Disposal of Assets Account 2000

 

35. What is the profit or loss on the disposal asset?

A. N4,000 profit

B. N2,000 profit

C. N2,000 loss

D. N2,000 loss

 

36. "The Accountant thinks the investment in the books are worthless". This is

A. consistency concept

B. objectivity concept

C. conservatism concept

D. money measurement concept

 

37. Profits are recognised when goods are sold. What concept is this

A. realization

B. matching

C. periodicity

D. going concern

 

Use the following information to answer question 38 to 40

	Ali	Baba
Interest on Capital	5%	5%
Partner’s Salary	N500,000	N300,000
Capital Account b/d	N5,000,000	N4,000,000
Current Account b/d	N400,000	N500,000
Partner’s Drawings	N2,300,000	N500,000

 

38. What is Baba's share of profit?

A. N1,650,000

B. N1,600,000

C. N1,280,000

D. N1,100,000

 

39. What is Ali's share of profit?

A. N1,650,000

B. N1,600,000

C. N1,280,000

D. N1,100,000

 

40. What is the closing balance in Ali's Current Account?

A. N1,600,000 Cr.

B. N500,000 Cr.

C. N500,000 Dr

D. N1,600,000Dr

 

 

41. An agreement made by partners to regulate and govern their business activities is known as

A. partnership Act

B. Partnership Deed

C. partnership code

D. Memorandum

 

42. Which of the following are correct about a limited liability company?

i. Members have power to bind the company

ii. Perpetual succession

iii. Certificate of incorporation

iv. Wound-up on death of a share holder

A. ii and iii only

B. i and iv only

C. ii and iv ony

D. i and iii only

 

43. Issue of prospectus is an invitation to members of the public to

A. subscribe for shares

B. register a company

C. redeem shares

D. liquidate a company

 

Use the following information to answer the given questions 44 to 46

	N
Sales	200,000
Opening Stock	20,000
Purchases	140,000
Closing Stock	10,000
Expenses	10,000
Bank	10,000
Capital	85,000
Creditors	35,000
Debtors	50,000
Fixtures and Fittings, cost	10,000
Freehold land and building	70,000
Drawings	10,000

 

 

44. Percentage of net profit to sales is

A. 40%

B. 30%

C. 20%

D. 10%

 

45. Acid test ratio is

A. 1.8 : 1

B. 1.7 : 1

C. 1,5 : 1

D. 1.2 : 1

 

 

46. Gross profit is

A. N70,000

B. N60,000

C. N50,000

D. N40,000

 

47. The Chief accounting officer of the federation is

A. Minister of Finance

B. Auditor General

C. Accountant general

D. chief accountant

 

50. The expenditure on a good or service which is consumed either immediately or within a current accounting government?

A. annual expenditure

B. budgetary expenditure

C. capital expenditure

D. recurrent expenditure

 

 

49. Which of the following serve as the main Government Fund used to service all operations of the government?

A. General fund

B. consolidated revenue fund

C. consolidated reserve fund

D. special fund

 

50. Which of the serves as an input, storage and output device of a computer?

A. diskette

B. keyboard

C. monitor

D. printer