1).The process of collecting, recording, presenting, analyzing and interpreting financial information for the users of financial statements is referred to as___
(A)This concept provides the basis for the formation of the accounting equation
(B)Accounting
(C)Auditing
(D)None of the above
Ans: This concept provides the basis for the formation of the accounting equation



2).Amount taken from business account for the chairman\'s daughter birthday is called _
(A)consumption
(B)Withdrawal
(C)Draings
(D)Losses
Ans: Draings



3).The branches of accounting include the following, except __
(A)Cost accounting
(B)Management accounting
(C)Auditing
(D)Business finance
Ans: Business finance



4).Transactions that are recorded in the journal include the following except;___
(A)Transfers from one account to another
(B)Recording of opening and closing entriest
(C)Recording of special transactions like revaluation of assets, creation of goodwill
(D)All of the above
Ans: All of the above



5).The aim of employee is to be sure of continuous existence of the organisation which will guarantee their __.
(A)Employment
(B)Existence
(C)Employability
(D)Preparing financial statement
Ans: Employment



6).Statements prepared to know profit or loss and financial position of the business are called___
(A)Trial balance
(B)Financial statement
(C)Bank Reconciliation Statement
(D)All of the above
Ans: Financial statement



7).____ is used to record goods previously bought for resale but later returned to the supplier due to one reason or the other.
(A)Carriage inward
(B)Return inward journal
(C)Purchases journal
(D)Sales journal
Ans: Return inward journal



8).The double entry principle states that for every debit entry for a transaction, there must be ___
(A)A corresponding credit entry for the another ledger transaction, and for every credit entry for a transaction
(B)A corresponding credit entry for the another ledger transaction, and for every credit entry for a transaction
(C)A corresponding credit entry for the another ledger transaction, and for every ledger entry for a transaction
(D)A corresponding credit entry for the another ledger transaction, and for every credit journal entry for a transaction
Ans: A corresponding credit entry for the another ledger transaction, and for every credit entry for a transaction



9).The double entry system signifies a way of recording all accounting transactions____
(A)Once
(B)Twice
(C)Severally
(D)Multiple entries
Ans: Twice



10).Which of the following is not a nature of accounting?
(A)Accounting as a profession
(B)Accounting as a language
(C)Accounting as an art
(D)Accounting as a science
Ans: Accounting as an art

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1.  Which accounting concept satisfy the valuation criteria?
Going concern, Realisation, Cost

2.  ____________ is money spent to acquire or purchase property of permanent nature for individuals and organisations.
Capital expenditure

3.  Which statement is not true about reasons for using international accounting standards?
Narrows the areas of difference between companies

4.  Which is an intangible asset?
Goodwill

5.  There are ________ professional accounting bodies in Nigeria
2

6.  The ________ state that profit should not be anticipated when recognising profit to be recorded in financial statement, but the profit should be based on actual profit earned or realised for the particular period
Convention of prudence

7.  Computerised accounting system has the following demerits except__________
The risk or loss of data is reduced to the barest minimum

8.  The documents that are exchanged between buyers and sellers which are binding on both parties are called ________
Journal

9.  Ufedo is a customer of Jason. The balance on Ufedo’s account in Ejura’s books is N200 debit. Ufedo sends Ejura a cheque for N50. What is the balance on Ufedo’s account after this transaction?
Sell to other buyers

10. The external auditing service provided by accountants is to ensure complete and reliable ________
Financial statement