FBQ1: The beginning of accounting was _______
Answer: Stewardship
FBQ2: In accounting permanent records should be created whereby both the ______and the owner can
have access to present and past events.
Answer: Steward
FBQ3: The owner of the business is referred to as an ____
Answer: entrepreneur
FBQ4: The earliest known originator of book keeping system was................
Answer: Rev. Father Lucas Pacioli
FBQ5: Accounting consists of the process in designing and operating an efficient accounting information system for collection, recording, measuring, summarizing, analyzing and __________the results of
financial transactions for a particular period to users of financial information for them to make informed decisions.
Answer: Communicating
FBQ6: Accounting is a discipline involved with the recording, classification and _______of financial information for both trading and non-trading organisations.
Answer: Interpretation
FBQ7: Sales represents total of all credit and cash sales made to a ___________
Answer: Third party
FBQ8: Accounting requires the acquisition of a specialized knowledge over a given period of time which involves the combination of_________
Answer: Theory and Practice
FBQ9: Reserves are amounts set aside out of profits earned by a company and constitute part of __________fund.
Answer: Shareholders’
FBQ10: Accounting is a ________because is a means of communicating business information.
Answer: Language
FBQ11: Accounting does not have ________ products that can be bought and sold like the manufacturing companies.
Answer: Physical
FBQ12: Accounting is a _________because it follows a systematic and organised body of knowledge.
Answer: Science
FBQ13: Accounting is a ________because it is also based on some fundamental principles which are applicable worldwide.
Answer: Management science
FBQ14: The maintenance and recording of the books of accounts in a _____manner similar to
procedures in a laboratory make accounting a science.
Answer: Systematic
FBQ15: Accounting should include enough facts and _____to satisfy the need of the users.
Answer: Figures
FBQ16: Ability to trace all accounting transactions in a report to the source documents is important for ________to be realized.
Answer: Objectivity
FBQ17: Bank reconciliation is the process of making the balance on the bank column of a cash book to _____with the balance on the bank statement received from the bank.
Answer: Agree
FBQ18: Accounting report should be prepared in a way that allows for quick and easy ________from one period to another.
Answer: Comparability
FBQ19: Accounting report is _______ if it is easy to change, adjust and adaptable to suit different kinds of users.
Answer: Flexible
FBQ20: Financial accounting is also used to determine the _________of an organisation which shows the company’s assets and liabilities at a particular date.
Answer: Financial position
FBQ21: Cost accounting helps organisation in controlling and _______their costs.
Answer: Minimizing
FBQ22: Management accounting is a branch of accounting that uses different _______analysis tools to project for the future of an organisation.
Answer: Quantitative
FBQ23: Auditing is an ______examination of the books of accounts, records and financial statement of an organisation by an independent person called an auditor.
Answer: Independent
FBQ24: Without the accountants, financial statements will not make any ______to many people.
Answer: Meaning
FBQ25: The external auditing service provided by ________is to ensure that complete and reliable
financial statements are published or released to the public.
Answer: Accountants
FBQ26: Every business organisation is expected to keep its __________accurately and in an orderly manner.
Answer: Financial records
FBQ27: Accounting is used to ________the financial performance of an organisation
Answer: Measure
FBQ28: Accounting makes use of _______financial data in forecasting future performance and financial position of different organisations.
Answer: Historic
FBQ29: Shareholders are the _______of a company and they are interested in the performance of the company
Answer: Owners
FBQ30: The government is interested in accounting information to determine the company income tax to be paid, _______with government rules and regulations governing the operation of the business.
Answer: Compliance
FBQ31: The concern of the suppliers is to know how stable the company is ______in order to meet their bills and invoices as at when due.
Answer: Financially
FBQ32: The laid down rules that are complied with in the preparation of accounting records for any organisation is _______
Answer: Accounting concept
FBQ33: The tradition for the preparation of accounting records is __________
Answer: Accounting convention
FBQ34: In recording the books of accounts, the business records are kept and treated_______from the owners even in a situation where the business is owned by a person.
Answer: Share
FBQ35: In accounting revenues and expenses for any accounting period should be ________with each other so as to bring them into the accounting period to which they relate, so that the profit or loss for the period can be ascertained.
Answer: Matched
FBQ36: The convention of prudence states that profit should not be ______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.
Answer: Anticipated
FBQ37: A cheque is a _______instrument that originates from banks and it is used to withdraw money from a stated bank account in a bank.
Answer: Negotiable
FBQ38: A bank teller is used to ________money (cash and cheques) into an account in a bank.
Answer: Pay
FBQ39: Credit note is a document showing a ______in favour of the receiver.
Answer: Claim
FBQ40: Discount can be defined as an _______given to customers to enable them buy in large quantity, obtain profit margin price
Answer: Inducement
FBQ41: Quantity discount is a price ______given to a customer who buys in large quantity for
consumption and not for re-sale.
Answer: Reduction
FBQ42: Purchases day book is a subsidiary book of account used to record all goods bought and services received on _______from a third party in the order in which they occurred irrespective of the amount involved.
Answer: Credit
FBQ43: Journal or journal proper is one of the books of original entry that is used to record any
transaction which cannot be ________recorded or classified into any of the other subsidiary books.
Answer: Conveniently
FBQ44: The cash book is a book of original entry used to record all _____transactions.
Answer: Cash
FBQ45: A contra entry is any transaction that has been recorded ______in an account through a debit and a credit entry in the same account.
Answer: Twice
FBQ46: The double entry principle states that for every debit entry for a transaction, there must be a corresponding ________for the same transaction.
Answer: Credit entry
FBQ47: Ledger is the ______of accounts where the double entry principle is completed.
Answer: Principal book
FBQ48: Error is an accounting terminology used to signify ______made while recording and/or posting
financial transactions.
Answer: Mistakes
FBQ49: Expenditures are the money spent in an organisation in order to generate _______either now or in the future.
Answer: Income
FBQ50: The manual accounting system refers to the keeping of accounting record by __________of relevant posting in the books of accounts.
Answer: Handwritten
Part two
MCQ1: The accounting report should be ...........enough to give the user full information with which decision could be reached.
Answer: Complete
MCQ2: Good accounting information should be ...........to the purpose for which it is prepared.
Answer: relevant
MCQ3: The owner of a business is referred to as __________
Answer: an entrepreneur
MCQ4: Financial accounting is prepared on ___________
Answer: Historical basis
MCQ5: Financial accounting is also used to determine the ..........of an organisation
Answer: Financial position
MCQ6: Accounting as a form of knowledge and profession consist of different branches
except...................
Answer: Commerce
MCQ7: To find out the cost of goods produced or services rendered in an organisation we need...............
Answer: Cost accounting
MCQ8: The acquisition of key business information that includes income, expenditure, profit, assets and liabilities are made available from ____________ prepared by accountants.
Answer: Financial Statement
MCQ9: In business, __________ refers to the process of allocating funds to meet the needs of your business.
Answer: Finance
MCQ10: The sole proprietorship business is also referred to as a __________
Answer: One-man- business
MCQ11: Which of the following is not a nature of accounting?
Answer: Auditing
MCQ12: Utility is the satisfaction derived from consuming a particular product or accepting a service.
Answer: Economist’s point of view
MCQ13: For financial statements to make meaning to many people, one of the following must be prepared by an accountant.
Answer: Accounting ratio
MCQ14: To investigate the adequacy of tax paid by organisations, government engages the services of..........
Answer: Accountant
MCQ15: To safeguard the assets of an organisation, an Accountant employs one of the following.............
Answer: Internal control system
MCQ16: The two government recognised accounting professional bodies in Nigeria are:
Answer: Association of National Accountants of Nigeria and Institute of Chartered Accountants of Nigeria
MCQ17: One of the following is not a direct user of accounting information
Answer: Supplier
MCQ18: Business documents that confirm the occurrence of financial transaction between two or more parties are called.......
Answer: Source documents
MCQ19: The total of goods returned to supplier from the purchases returns day book is transferred to the ............of the returns outwards account.
Answer: Credit side
MCQ20: The following except ____________ are recorded in the Journal Proper
Answer: Recording of credit sales
MCQ21: The left side of a cash book is called_____________________
Answer: Debit side
MCQ22: When cash is withdrawn from the bank to the office ________________
Answer: Credit - The bank column.
MCQ23: Contra entry can be found in___________
Answer: Two column cash book
MCQ24: When liabilities value reduces, the liabilities account should be___________.
Answer: Debited
MCQ25: The advantages of trial balance exclude one of the following_______.
Answer: It helps in preventing errors.
MCQ26: One of the following errors does not affect the agreement of trial balance
Answer: Errors of principle
MCQ27: A debtor paid N10, 500 cash but his account was credited with N10,000 while the cash book was debited with N10,500.
Answer: Credit - Debtors Account N500
MCQ28: Motor vehicle purchases of N660,000 was entered in the purchases account. Correct the errors.
Answer: Credit -Purchases account
MCQ29: The cost of transporting goods meant for resale into the organisation is called___
Answer: Carriage Inward
MCQ30: Assets that add value to the organisation but they cannot be seen by their nature are
called_________
Answer: Intangible assets
MCQ31: Services and goods that have been consumed or enjoyed during the year but which payment has not been made either in full or in part at the end of that financial year is called_________
Answer: Accruals
MCQ32: Reserve which is distributed to the shareholder and other capital providers in form of
debenture interest, retained profit is called ________
Answer: Revenue Reserve
MCQ33: Any transactions that will increase the customers’ indebtedness to the organisation are .........to the debtors control account
Answer: Debited
MCQ34: A statement sent periodically usually once a month by a buyer to his suppliers is
called____________
Answer: Creditor’s Statement of Account
MCQ35: The causes of the differences between the bank statement and the cash book exclude one of the following____________________
Answer: Signed cheques
MCQ36: To prepare Bank reconciliation statement start with Balance as per adjusted cash book and add_______
Answer: Unpresented cheques
MCQ37: The accounting concept that assumes that the business will be in existence for a very long period of time without any intention to close the company later is___
Answer: Going Concern Concept
MCQ38: The traditions and customs adopted by accountants for the preparation of financial statements exclude one of the following
Answer: Money Measurement
MCQ39: A document that is used to record full details of money paid for a particular purpose is
called______________
Answer: Payment Voucher
MCQ40: One of the following is not a subsidiary book of account_______
Answer: Ledger account
MCQ41: Where an account of capital expenditure is treated as revenue expenditure item it is
called_______________
Answer: Errors of Principle
MCQ42: Cash of N600,000 received from a debtor was recorded in the cash book only. You are to correct the error.
Answer: Debit - Suspense Account N600,000
MCQ43: One of the following is not a branch of accounting.
Answer: Investigative accounting
MCQ44: The accounting system that recognizes revenue from selling a good or service in the period which the good is sold or the service is performed is called_________
Answer: Accrual based accounting
MCQ45: The revenues that are generated outside the sales of goods or services that the firm regularly deals with are called
Answer: Discount received
MCQ46: Essential features of a business organization exclude one of the following
Answer: The need to take risk
MCQ47: The functions of an accountant exclude one of the following.
Answer: Stock brokering
MCQ48: The professional person that reports on the true and fair view of an organisation’s financial statements is
Answer: Auditor
MCQ49: An inducement given to debtors (credit customers) for paying their debt on time or promptly within the specified time frame or period is known as
Answer: Cash Discount
MCQ50: A book used to record goods previously sold to customers but were later returned by the buyer to the seller is known as__________
Answer: Returns Inwards Journal
Part three
ACC203Accounting principles upon which preparation of accounting records are based, which are universally acceptable are…..
Answer: Accounting Concepts
ACC203In accounting, the convention that recognises that profits should not be anticipated by recording
them prematurely is called…
Answer: Convention of conservatism
ACC203The financial statement prepared by accountants should exclude one of the following
Answer: Subsidiary books
ACC203One of these is not a way of interpreting financial statements to different users by an
accountant.
Answer: Journal proper
ACC203The user of accounting information who ensures that the interests of the public are protected
within the company activities is…………..
Answer: Government
ACC203Documents that buyers and sellers exchange between themselves which are binding on them
are called………...
Answer: Source documents
ACC203Accounting is a profession whose members must acquire………
Answer: Scientific knowledge
ACC203Accounting is used to measure the …………... of an organisation.
Answer: Monetary performance
ACC203A branch of accounting that ascertains the cost of goods produced or services rendered in an
organisation is…
Answer: Cost accounting
ACC203The officer who reports on the true and fair view of an organisation’s financial statements is called…
Answer: Chartered Accountant
ACC203The preparation of accounting services carried out at the local, state and federal government
ministries and parastatals is known as
Answer: Public sector accounting
ACC203An accountant does not perform one of these functions
Answer: Investment decision
ACC203One of these is a direct user of accounting information.
Answer: Managers
ACC203Information about income, expenditure, profit, assets and liabilities can be obtained
from……..
Answer: Payment Voucher
ACC203The document that is used to record full details of money paid for a particular purpose is called…….
Answer: The double entry system
ACC203It is called ……….if every debit entry, there is a corresponding credit entry and vice versa.
Answer: Both debit and credit have equal amount
ACC203Advantage of a trial balance does not include one of the following.
Answer: Both debit and credit have equal amount
ACC203Error is an accounting terminology used to signify mistakes which are
Answer: Genuine mistakes
ACC203A temporary account that is opened to record errors that cause the trial balance total not to agree is…..
Answer: Suspense account
ACC203The cost of transporting goods meant for resale into the organisation is called….
Answer: Carriage Inwards
ACC203A debtor paid N65,500 cash but his account was credited with N65,000 while the cash book was debited with N65,500. You are required to correct the errors.
Answer: Debit - Suspense Account with N500
ACC203A payment of N99,000 to a creditor was omitted from the cash book but recorded in the
creditor's account in the ledger.
Answer: Debit - Suspense Account with N99,000
ACC203Error that does not require any journal entry for rectification is called…………….
Answer: One sided error
ACC203The money spent in an organisation to generate income is called…………..
Answer: Expenditures
ACC203Expenditure that is carried forward in the statement of financial position which does not
immediately affect profit is ….
Answer: Capital expenditure
ACC203Cost of goods sold is also referred to as ……….
Answer: Cost of sales
ACC203The cost price of goods sold for a particular period can be derived by ……………
Answer: Adding purchases, opening stock, carriage inwards and deducting goods withdrawn by
the owner & returns outwards
ACC203The profit realised on trading activities alone without other expenses incurred in the business is……..
Answer: Gross Profit
ACC203Statement of financial position is part of ………….
Answer: the final accounts
ACC203Thes financial obligations against the company that are not due for repayment within one year are called………
Answer: Non-current liabilities
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