NOUN TMA Questions and Answers: SMS204 / ACC204 - Introduction to Financial Accounting II




Q1 On 1 May, A pays a rent bill of N1,800 for the twelve months to 30 April. What is the charge/credit to the income statement for the year ended 30 November?

N1050

Q2 Which ONE of the following attributes is the most important for any code to possess in order to be of use in an accounting system?

B. Each code is a unique number.

Q3 Which of the following are used in a coding system for accounting transactions?

A. Department code.
B. Nominal ledger co de.
C. Product code.
---D. All of the abo ve.

Q4 On 1 May, East owed a supplier N1,200. During the month of May, East:(1)Purchased goods for N1,700 and the supplier offered a 5% discount for payment within the month.(2)Returned goods valued at N100 which had been purchased in April. (3)Sent a cheque to the supplier for payment of the goods delivered in May.What is the balance on the supplier􀳦??s account at the end of May?

N1100

Q5 N operates an imprest system for petty cash. On 1 February, the float was N300. It wasdecided that this should be increasedto N375 at the end of FebruaryDuring February, the cashier paid N20 for window cleaning, N100 for stationery and N145 forcoffee and biscuits. The cashier received N20 from staff for the private use of the photocopier and N60 for a miscellaneous cash sale.What amount was drawn from the bank account for petty cash at the end of February?

N260

Q6 P is a sole proprietor whose accounting records are incomplete. All the sales are cash sales and during the year N50,000 was banked, including N5,000 from the sale of a business car.He paidN12,000 wages in cash from the till and withdrew N2,000 per month as drawings.The cash in the till at the beginning and end of the year was N300 and N400 respectively.What were the sales for the year?


N81100

Q7 The entries in a sales ledger control account are:Sales 250,000; Bank 225,000; Sales returns 2,500; Bad debts (irrecoverable debts?) 3,000; Bad debts (irrecoverable debts?) 3,000;Returned unpaid cheque 3,500; Contra with purchase ledger account 4,000;What is the balance on the sales ledger control accout

N19000

Q8 What is an imprest system?

Helps to control petty cash.

Q9 Z􀳦??s bank statement shows a balance of N825 overdrawn. The bank statement includes bankcharges of N50, which have not been entered in the cash book. There are unpresentedcheques totalling N475 and deposits not yet credited of N600. The bank statement incorrectly shows a direct debit payment of N160, which belongs to another customer.What figure for the bank balance should be shown in the statement of financial position?

N540 overdrawn.

Q10 B operates the imprest system for petty cash. At 1 July there was a float of N150, but it was decided to increase this to N200 from 1 August onwards. During July, the petty cashier received N25 from staff for using the photocopier and a cheque for N90 was cashed for an employee. In July, cheques were drawn for N500 for petty cash.What was the total expense paid from petty cash in July?

385

Q11 The core objective of accounting is

Provide financial information to the us ers of such information

Q12 The objective of financial statements is it enables users to assess the performance ofmanagement and to aid in decision making

STATEMENT NOT VA LID

Q13 Non-current assets can best be defined as Items of machinery which are not moveable and are purchase with an intention of resale

STATEMENT NOT VA LID

Q14 The accounting equation at the start of the month was:Assets N14,000 less liabilities N6,500.During the following month, the business purchased a non-current asset for N6,000, payingby cheque, a profit of N9,000 was made, and payables of N7,500 were paid by cheque.What would the balance on capital be at the end of month?

N16500

Q15 Which ONE of the following best describes the stewardship function?

Ensuring the rec ording, controlling and safeguarding of assets.

Q16 When there is inflation, the historical cost convention has the effect of

Overstating profits and understating statement of financial position values.

Q17 A company includes in inventory goods received before the year end, but for which invoices are not received until after the year end. This is in accordance with

The accruals concept.

Q18 Which one of the following should be accounted for as capital expenditure?

Legal fees incurred on the purchase of a buil ding.

Q19 Which one of the following sentences does NOT explain the distinction between financial accounts and management accounts?

Financial accounts are audited by management where as managem ent accounts are audited by external auditors

Q20 The difference between an income statement and an income and expenditure account is that

An income statement is prepared for a business and an income and expenditure accou nt is prepared for a not for profit making organisation.


Q21 During year 2016, Victor paid rent amounting to 500,000. He owed 50,000 at the beginning of the year and by 31 December 2016, he had paid rent in advance of 100,000. His rent charge for 2016 was?

350000

Q22 Use the following details to answer.Trade receivables control account balance 500,000.00 Allowance for doubtful debts 50,000.00Allowance for discount allowed on receivables 5%.The receivables figure to be shown under current assets in the Statement of Financial position is

427500

Q23 Which of the following would result from an increase in the allowance for doubtful debts?

A decrease in net profit

Q24 One of the following is a disadvantage of Application Packages.

There may be inclusion of featu res that are not particularly relevant in the packages


Q25 The following are application packages EXCEPT.

Re-writable

Q26 The process of locating and eliminating errors from a program is known as􀳦?􀳦􀳦?􀳦.

Debugg ing

Q27 The following are optical Disks EXCEPT

Floppy disk

Q28 The data storage hierarchy is as follows:

Bits, Bytes, Field, Records, Files, Database

Q29 An error of commission occurs where the entries required for a transaction are partially omitted.

Statement not va lid

Q30 Which of the following errors will cause the trial balance totals to be unequal?

A. Errors of transposition.

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