Hello and Welcome to UTME CBT FREE Practice Test - Principles of Accounts You are to attempt 40 Random Objectives Questions ONLY for 30 minutes. Supply Your Full Name in the text box below and begin immediately. Your time starts NOW! Full Name (Surname First): Location (City/State): A member of a club paid N 1,000 as his subscription for 1993 and N 1,200 as subscription for 1992. If the financial year of the society ended on 31st December, 1993, the N 1,200 subscription will be treated in the balance sheet as _______ A. current asset B. current liability C. capital D. profit.ABCD At the end of a financial period, the trading profit and loss account of a company showed a profit of N 120,000. It was however discovered that revenue of N 12,000 was recorded as expenses while expenses of N 4,000 had been recorded as revenue. What should be the correct profit for the period? A. N 104,000 B. N 128,000 C. N 136,000 D. N 144,000ABCD The need for changes in accounting theory in Nigeria was influenced by the _____ A. dynamics of commercialisation and privatisation policiesB. growth in size of business unitsC. introduction of the structural adjustment programmeD. inconvertibility of the nation’s currency.ABCD Money not required to meet chargeable expenditure in any fiscal year under cash account should be _____ A. surrendered to the consolidated revenue fundB. carried forward to the next financial yearC. reserved to meet any deficit or contingenciesD. returned to the taxpayer.ABCD Which of the following are sources of revenue to state governments in Nigeria? I. Statutory allocation.II. Fines from customary courts.III. Petroleum tax.IV Income tax. A. I and II only. B. II and III only. C. I and IV only. D. III and IV only.ABCD The following is a draft balance sheet as at 31\12\92 Accumulated Cost Depreciation Net N N N Fixed Assets (Tan) 200,000 100,000 100,000 Current Assets Stock in trade 10,000 Trade debtors 4,500 Cash at bank 22,800 Cash in hand 9,700 Trade creditors ? Capital ? Trade creditor’s account was maintained at 25% to the capital What was in the capital account as at 31/12/92? A. N 76000 B. N 83,000 C. N 17,600 D. N 117,650ABCD Wazobia Enterprises Balance Sheet as at 1/1/95 N N Liabilities Assets Capital 40,000 Furnishings 10,000 Ceiling fan 1,500 Cash at Hand 28,500 40,000 40,000 In 31/1/95, the following information was ascertained (i) rent for shop N 12,000 paid for the year(ii) total purchases N 15,000(iii) total sales N 8,200(iv) stock of goods left N 10,000(v) paid sales boy N 500 17. What is the new balance sheet total as at 31/1/1 95 ? A. N 40,000 B. N 41,500 C. N 41,700 D. N 48,500 ABCD I. A retailer, when fixing his selling price, adds one-quarter to the cost of the article.II. The expenses of the retailer’s 10% of his-sales.III. The total sales is N 23,000.IV. He turned over his stock five times ¡n the year. The net profit for the year is _____ A. N 5,750 B. N 5,650 C. N 3,200 D. N 2,300.ABCD Erroneous real arrangement of financial figures such as writing N 624 as N 264 is called ______ A. transposition B. principle C. commission D. omission.ABCD The main features of single entry system are that ______ A. books of accounts are not maintained and business relies only on bank statement.B. the journal records are absent and only the main ledger is keptC. there are complete classifications and recording procedures.D. only credit sales transactions and credit purchases are recorded.ABCD The conventional sources of public revenue include _____ A. loan, taxation, foreign reserves and dividendsB. interest, royalties, taxation and loansC. crude oil, interest, posted price and taxationD. taxation, deficit budgeting, royalties and loans.ABCD Mini Enterprises Sales Ledger as at 31/12/94 reads N Balance b/f 12,750 Total credit sales 28,185 Payments by debtors 12,112 Discount allowed 638 Sales returns 1,500 Prepare the sales ledger control account and determine the balance due from debtors A. N 44,935 B. N 27,961 C. N 26,685 D. N 1,185ABCD On 1st January, 1993, Lobo Company purchased equipment for N 18,000. It uses straight-line depreciation and a N 2,000 salvage value. On 31st December, 1996, it sells the equipment for N 8,000. In recording this sale, it should reflect ______ A. N 10,000 loss B. N 2,000 loss C. N 6,000 gain D. N 8,000 gain.ABCD Sobande Incorporation acquired a machine that involved the following expenditures and related factors. N Gross invoice price 15,000 Sales tax 900 Purchases discount taken 300 Freight 750 Assembly of machine 500 Installation of machine 800 Assorted spare parts for future use 1,200 Turning and adjusting machine 700 What is the initial accounting cost of the machine? A. N 19,550 B. N 18,950 C. N 18,350 D. N 17,500ABCD Yakubu (Nigeria) Limited.(Extract Balance sheet as at 31st December, 1993 Authorized issued) N N N Ordinary shares 100,000 80,000 10% preference shares 30,000 20,000 Shares premium 20,000 Profit and loss A/C 13,000 Trade creditors 30,000 Accruals 5,000 Stock 10,000 Debtors 40,000 Bank 25,000 If 10% dividend is approved, what is the dividend payable to ordinary shareholders? A. N 13,000 B. N 11,300 C. N 10,000 D. N 8,000 ABCD One major advantage of a ledger is that it _______ A. is a book of original entryB. is only accessible to shareholders during distributionC. removes the need for preparing a balance sheet after each transactionD. can be used by any type of business.ABCD The end result of governmental accounting procedure is to ______ A. Keep proper records of government expenditures.B. give financial information to the public and investors.C. produce timely and accurate financial reports for legislators and the public.D. give information on the performance of public enterprises.ABCD Which of the following statements is correct about the head office current account and the branch current account? A. Both always have debit balances.B. Both always have credit balances.C. The head office current account has a credit balance while the branch current account has a debit balance.D. The head office current account has a debit balance while branch current account has a credit balance.ABCD To compute gearing ratio, divide ______ A. profit by capital employedB. current assets by current liabilityC. profit by total assetsD. long term debt by equity capital.ABCD The ordinary shareholders enjoy the following rights except the right to _____ A. vote at annual general meetings B. elects the board of Directors C. participates in additional issue of shares. D. receives dividends at a predetermined rate.ABCD The difference between a trading account and a manufacturing account is that while manufacturing account _______ A. has no particular period, the trading account hasB. does not consider cost of goods involved, the trading account doesC. is concerned with the cost of production, trading account is not.D. is not concerned with stock of raw materials, the trading account is.ABCD If a monthly insurance premium is remitted to a company by the state government, the initial deductions from employees are recorded in _____ A. the General fundB. Agency fundC. Special fundD. General long-term fundABCD The Asa branch of Emene Company Ltd. made a sales of N 549,000 from the goods sent from the head office during the period ended 31/12/94. These sales were based on a 22% mark up. If branch expenses were N34,400 and there were no discrepancies what should be the net profit of the branch for the period? A. N 6,500 B. N 64,600 C. N 85,380 D. N 514,600ABCD N Capital: opening balance 307,000 Closing balance 342,000 Net profit for the period 121,600 Opening stock 98,800 Purchases 706,000 Carriage inwards 17,500 Cost of goods sold 740,700 Total selling, general and administration expenses 526,000 Discount received 9,650 What is the closing stock tar the period? A. N 69,300 B. N 81,300 C. N 81,600 D. N 106,400ABCD Which of the following accounts is kept by local governments in Nigeria? A. Balance sheetB. Advances accountC. Debtors accountD. Profit and loss account.ABCD Yakubu (Nigeria) Limited.(Extract Balance sheet as at 31st December, 1993 Authorized issued) N N N Ordinary shares 100,000 80,000 10% preference shares 30,000 20,000 Shares premium 20,000 Profit and loss A/C 13,000 Trade creditors 30,000 Accruals 5,000 Stock 10,000 Debtors 40,000 Bank 25,000 Equity shareholders’ fund is _______ A. N 133,000 B. N 120,000 C. N 113,000 D. N 100,000ABCD The initial imprest as at July 1st was N 500. Petty cash vouchers with the custodian by July 15th added up to N 374. An IOU slip received from a co-worker was N 65 and there was a shortage of N 5 cash. The co-worker made refund on July 18th just before the imprest was replenished. What was the actual cash in the teller as at 15th July? A. N 106 B. N 101 C. N 70 D. N 36ABCD The limitation of the receipts arid payments account arise mainly because of the reliance on _______ A. cash movement as evidence of transactionB. the accounting officer to reportC. the capital account of the organizationD. the transaction papers as evidence of transaction.ABCD The following represents extracts from the trading account of a retail outlet for a given month: Opening stock - N 2,400Closing stock - N 6,400Other expenses - N 2,000Sales - N 11,000Profit - N 900 What is the purchase figure for the month? A. N 13,000 B. N 12,100 C. N 12,000 D. N 11,200ABCD The purchase of two generators by Hassan Electronics Enterprises should be recorded as _______ A. an acquisition of fixed assetsB. an expenses in its general office expense accountC. an acquisition of stockD. a part of capital in the capital account. .ABCD If goods are invoiced to the branch at cost and the invoice per value is N 2,000 with 5% discount rate cash remitted to the head office at cost and the invoice per value ______ A. N 2,100 B. N 2,000 C. N 1,900 D. N 100ABCD The trading account ¡s to a sole trader what income and expenditure account is to a _______ A. partnershipB. public limited organizationC. manufacturing organizationD. non-profit making organization.ABCD Receipts and payments account of a non-profit making organization is principally a summary of the ______ A. bank entries B. cash book entries C. expenditure D. balance sheet entries.ABCD Public sector accounting ¡s based on ______ A. cash B. accrual C. budgets D. consolidated fundABCD A book-keeping error occurs when there is _____ A. deliberate manipulation of recordsB. unintentional correct posting in the ledgerC. intentional failure to record transactions completelyD. incorrect records and oversights that are not intended.ABCD If a sole proprietorship is purchased for cash, then ______ A. the purchaser debits his business purchase account with the consideration he paysB. all assets and liabilities must be boughtC. goodwill results where value of liabilities taken is higher than the value of assetsD. the vendor debits his business purchase account with the consideration receives.ABCD Capital and revenue expenditure of government are usually accounted for under funds which include ______ A. personal advances, technical and public fundsB. technical special trust and commercial funds.C. personal advances treasury clearance and special trust funds.D. commercial loans and treasury clearance funds.ABCD The conversion of a partnership business into a limited liability company affords the _____ A. general partners the chance of enjoying the limited liability protectionB. limited liability partners the chance of enjoying the limited liability protectionC. creditors the chance of enjoying the limited liability protectionD. debtors the chance of enjoying the limited liability protection.ABCD Given: Capital, N 13,000; Office machinery, N 9,000; Creditors, N 900; Stock of goods, N 1,550 Debtors, N 275; Cash at bank, N 5,075 and loan from Jumbo, N 2,000. What is the balance sheet total? A. N 19,500 B. N 18,500 C. N 17,900 D. N 15,900ABCD Goodwill can be valued in partnership when _____ A. partners make profitsB. large losses are madeC. a partner retiresD. a new branch is opened.ABCD1 out of GREAT! You finished before the expiration of the 30 minutes allotted to you. You may want to preview before submission, else, Click the submit button below to see your score To submit your quiz and see your score/performance report; Make sure you supply your Full Name in the form above. Unable to submit your quiz? Kindly Click Here To Retake UTME CBT FREE Practice Test - Principles of Accounts. Make sure you supply your Full Name before submission. Time is Up! Time's up Share on Facebook Tweet Follow us Share Share Share Share Share Categories: UTME CBT Practice Tests In All Subjects (General Test) Tags: UTME CBT FREE Practice Test - Principles of Accounts 0 Comments Leave a Reply Cancel replyYou must be logged in to post a comment. 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