- One of the the differences between bookkeeping and accounting is that the former
- A. records data while the latter interprets
- B. is regarded as the language of the business while the latter ascertains its strenght
- C. interprets data while the latter records it
- D. summarises information while the latter communicates it
2) The concept which states that revenue should be recognized at the point when the sale is deemed to have been made is
- A. matching
- B. consistency
- C. realization
- D. going concern
3) A cheque of #5,000 paid to Sulieman had been correctly entered in the cash book but had not been entered in Sulieman’s account. To correct this error, debit Sulieman’s account and credit
- A. cash account
- B. bank account
- C. suspense account
- D. purchases account
4) Aduke Motors bought three Toyota Hilux vans on cash at the cost of #6,000,000, on debiting the vehicle account, the corresponding credit for the purchase will appear in the
- A. sales day book
- B. purchases day book
- C. sales subsidiary book
- D. cash book
5) Which of the following affects the accuracy and authenticity of the trial balance?
- A. Error of ommission
- B. Error of commission
- C. Error of transposition
- D. Error of original entry
6) A ledger is classified into
- A. private, sales and purchases
- B. personal, general and private
- C. general, private and sales
- D. sales, purchases and general
7) The book of account in which information from the source documents are recorded consists of
- A. debit and credit notes
- B. ledger and subsidiary books
- C. prepayments and accruals
- D. profit and loss and balance sheet
8) The accounting entries to record a cheque issued by a business is to
- A. debit cash book and credit drawer
- B. credit cash book and debit drawer
- C. debit cash book and credit suspense account
- D. credit cash book and debit suspense account
9) Given:
If Emeka Enterprises settles its suppliers for goods purchased within 7 days, it can earn a cash discount of 12 and half percent. Assuming #22,800 worth of goods were purchased and settled within 5 days, what will be the amount to be credited in the cash column of the company’s cash book?
- A. #25,650
- B. #22,800
- C. #19,950
- D. #18,240
10) The major advantage of an imprest system is that it
- A. ensures a proper accountability for every expenditure
- B. trains the young accountants in preparation for greater responsibilities
- C. relieves the cheif cashier of the numerous petty cash payments
- D. serves as an analysis column for every expenses
