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): ASSURE Edu Services Balance Sheet (Extract) as at 31st December, 1997. N N Paid up capital 200,000 Fixed assets 300,000 Share premium 15,000 Profit & Loss a/c 60,000 Investments 180,000 Long-term loan 180,000 Stock 28,000 Debtors 90,000 Creditors 200,000 Provision (3,000) 87,000 Other current liabilities 100,000 Cash 60,000 Bank 100,000 755,000 755,000 The quick ratio is ______ A. 0.82 : 1 B. 0.91 : 1 C. 0.95 : 1 D. 1.53 : 1ABCD 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 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 Faruk and Osawe are ¡n partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N 9,000. In one accounting period, the business recorded a loss of N 1,500 (before deduction of Faruk’s salary). The appropriate distribution of the net loss would be _______ A. Faruk, (N 450); Osawe, (N 1,050)B. Faruk, (N 3,150) Osawe, (N 7,350)C. Faruk, (N 2,250); Ösawe, (N 5,250)D. Faruk, (N 8,550); Osawe, (N 1,050).ABCD Given: N Direct material 10,000 Direct labour 5,000 Direct expenses 2,000 Factory overhead 4,000 What is the prime cost? A. N 21,000 B. N 17,000 C. N 15,000 D. N 6,000ABCD On partnership dissolution, if a partner’s capital account has a debit balance and the partner is insolvent, the deficiency will, in accordance with the decision of the case of the Gamer y. Murray, be ______ A. borne by all the partnersB. borne by the insolvent partnerC. written offD. borne by the solvent partners.ABCD Given: N Capital at the beginning 20,000 Drawings 3,000 Capital at end 30,000 New capital introduced 8,000 What is the profit for the period? A. N 4,000 B. N 5,000 C. N 6,000 D. N 8,000ABCD In dealing with incomplete records, fixed assets are posted to _____ A. opening profit and loss as brought forward figuresB. closing balance sheet as carried forward figuresC. closing balance sheet as brought forward figuresD. closing profit and loss as brought forward figures.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 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 Which of the following factors has aided the development of Accounting? A. The emergence of nation statesB. The discovery of mineral resources in commercial quantityC. The growth in size of businesses and the separation of ownership and management.D. The development and management of a sophisticated monetary system.ABCD Emeka Manufacturing company (Extract) Manufacturing Account. N Direct material 15,000 Direct labour 4,500 Direct expenses 3,000 Factory overhead 2,500 Selling and distribution 1,500 Calculate the product cost. A. N 16,500 B. N 15,000 C. N 14,000 D. N 12,500ABCD Alabede (Nig.) Limited issued 50,000 ordinary shares, 1 each at a market value of N 2.50 each. The share premium is ______ A. N 125,000 B. N 100,000 C. N 75,000 D. N 50,000.ABCD Share premium can be used to I. write off discount on sharesII. give loans to directorsIII. pay dividendsIV. pay company’s formation expenses A. I and IV only B. I and III only C. II and III only D. III and IV only.ABCD The total of the creditors at the beginning of the year was N 4,600 and at the end of the year N 5,250. During the year, N 26,500 was paid to suppliers and N 130 was received in discount from these suppliers. The purchases for the year would be _____ A. N 26,630 B. N 27,038 C. N 27,150 D. N 27,280ABCD In a public corporation, the capital expenditure incurred in a financial period is ______ A. spread over the useful life of the assets through depreciationB. apportioned at a predetermined rate stipulated by lawC. written off in the year in which they occurD. merged with recurrent expenditure and reported in one lump sum.ABCD In preparing accounting records, the owners of a business and the business are treated as _____ A. the same personB. having business relationshipC. separate legal entitiesD. partners.ABCD Which of the following ratios gives an idea of the liquidity of a firm? A. Turnover ratio B. Quick ratio C. Debt ratio D. Dividend yield.ABCD A charitable club has the following figures: N Subscriptions received in 1991 2,800 Subscriptions unpaid in 1990 300 Subscriptions due 1991 150 How much should be charged to the Income and expenditure of this club as subscription for 1991? A. N 2,530 B. N 2,680 C. N 2,830 D. N 2,980ABCD Given: N Prime cost 220,000 Factory cost 32,000 Work in progress at beginning 25,000 Work in progress at close 19,000 Administrative expenses 21,000 Determine the production cost. A. N 296,000 B. N 277,000 C. N 258,000 D. N 246,000ABCD Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N 20,000, N 15,000 and N 5,000 on which they are entitled to interest at 5% per annum. The profit for the year before charging interest on capital amounts to N 5,500. Calculate the profit for Adamu. A. N 583 B. N 1,000 C. N 1,167 D. N 1,750ABCD Chibuike bought 36 notebooks at N 10 each from John and was given a trade discount at 5%. In addition, he was offered I % cash discount which he took advantage of. How much did Chibuike pay? A. N 338.58 B. N 342.00 C. N 345.42 D. N 360.00 ABCD Given: N Net profit 25,000 Cost of sales 25,000 Sales 85,000 Determine the total expenses A. N 45,000 B. N 35,000 C. N 25.000 D. N 15,000ABCD If a promoter pays a lawyer 5,000 for services rendered in preparing a Memorandum of Incorporation, the journal entry is to debit are _____ A. preliminary expenses credit cash accountsB. promoter, credit creditors accountsC. lawyer’s credit cash accountsD. cash, credit incorporation accounts.ABCD The contribution margin on a job is the _______ A. Gross profitB. Net profitC. Excess of sales revenue over variable costsD. Difference between fixed and variable cost.ABCD Adama’s bank account showed an overdraft of 600 on 31st March. Ongoing through the account, it was discovered that the N 1,080 paid into the account on 29th March had not been credited. What should be the balance in Adama’s cash accounts? A. N 1,680 Dr. B. N 1,080 Cr. C. N 600 Dr. D. N 480 Cr.ABCD An effective accounting system should provide information _______ A. on new products and methodsB. for customer feedback and requirementsC. on internal and external reporting for managers and third partiesD. for promoters, directors, labour unions and distributors.ABCD N Hospital buildings 200,000 Drugs 180,000 Hospital beds and mattresses 40,000 Doctors’ and nurses’ salaries 120,000 Administrative expenses 50,000 Recurrent expenditure is ______ A. N 390,000 B. N 360,000 C. N 350,000 D. N 170,000ABCD The total of the discounts received column in the cash book is posted to the ______ A. credit of the discount received accountB. debit of the discounts allowed accountC. credit of the discount allowed accountD. debit of the discounts received accountABCD 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 Interest on a partner’s drawings is debited to the ______ A. partner’s current account and credited to the profit and loss appropriate accountB. profit and loss appropriation account and credited to the partner’s current accountC. profit and loss account and credited to the partner’s accountD. partner’s current account and credited to the profit and loss account.ABCD A governmental accounting system must make sure that _______ A. revenue exceeds expenditureB. all applicable legal provisions are complied withC. capital expenditure is equal to revenueD. capital project fund is tied to recurrent expenditure.ABCD The instruments that are general when firms enter into business transactions with others are called ______ A. purchases documentsB. journalsC. source documentsD. invoices.ABCD Given:Motor van – N 3,600;Premises - N 5,000;Loan from R. Nwaeke - N 1 000;Cash at bank - N 2,560;Cash in hand – N 3,250Debtor – N 6,910. Calculate the capital figure. A. N 9,650 B. N 8,650 C. N 7,850 D. N 6,850ABCD The recording of wages due but not yet paid is an example of an adjustment for _______ A. apportionment of revenue between two periodsB. recognizing accrued expensesC. recognizing unaccounted revenueD. recognizing prepaidABCD 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 Which of the following demonstrates the imprest system? A. Float expenses paid cash ¡n bank floatB. float cash from bank expenses paid floatC. float expenses paid cash from bank floatD. Float cash ¡n bank expenses paid float.ABCD To record the transfer of stock from one department to another the correct entry would be to debit _____ A. goods outwards and credit goods inwardsB. merchandise account and credit department stock accountC. department transferring and credit department receivingD. department receiving and credit department transferring.ABCD The starting point for the production of accounts from incomplete records is to ______ A. ascertain the total salesB. computes the opening stock of goods soldC. verify the total purchasesD. prepares an opening statement of affairs.ABCD Amoga Limited invoiced goods at a cost of N 10,000 to its Ikeja branch at a margin of 20%. The branch later return goods worth N 1,200 at invoice price to the head office. 46. The profit margin should be _____ A. debited to goods sent to branch accountB. debited to branch stock adjustment accountC. credited to branch adjustment accountD. credited to branch stock accountABCD Departmental accounts are maintained to ascertain the ______ A. profits of the entire organizationB. contribution of each departmentC. expenses of each departmentD. sales at each department.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! 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