ACC203 EXAM PRACTICE QUESTIONS AND ANSWERS IN NOUN

DISCLAIMER: ACC203 PAST QUESTIONS AND ANSWERS IN NOUN IS A SERIES OF PAST QUESTIONS AND ANSWERS PROVIDED FOR EXAM PREPARATIONS; THEREFORE, IT IS ALSO IMPORTANT YOU USE THE EXAM KEYNOTES ALONGSIDE.

CLICK HERE TO GET THE ACC203 EXAM KEYNOTE.

The group of users who needs accounting information in order to be sure of

continuous existence of the organization which will guarantee their employment

a. Employee

b. Shareholders

c. Government

d. Managers

Profit and loss account is prepared in order to ascertain

a. purchases

b. Net profit

c. cost of goods available for sale

d. total sales

The branch of accounting that is concerned with the cost of goods produced or

services rendered in an organisation are known as

a. Management accounting

b. An entity

c. cost accounting

d. Financial accounting

The two indirect users of accounting information are financial analysts and

a. Government

b. Managers

c. Employee

d. Customers

One of the users of accounting information that will want to know about profit

earned, dividends to be paid and net worth of the business is called

a. Shareholders

b. Customers

c. Suppliers

Tax authorities

The three branches of accounting are, auditing, management accounting, and ______ accounting.

a. Customers

b. Reporting

c. Business

d. Financial

Prepayment is a charge to what class of assets

a. liability

b. Current assets

c. investment assets

d. fixed assets

The goods bought and later returned by the buyer to the seller is called

a. carriage inward

b. Return outward

c. return on sales

d. Return inward

In preparing a trading profit and loss account, insurance payment is a charge to _____

a. income statement

b. trading account

c. profit and loss account

d. balance sheet

The term used to describe the difference between current assets over current

liabilities is called

a. working capital

b. capital expenditure

c. investment assets

d. financing assets

The authority of the accountant-general to disburse from government fund is called

a. disbursement

b. warrant

c. implementation

d. approval

Considering not-for-profit making organization, the cash book is summarized in the

form of

a. subscription

b. receipt and payment account

c. income and expenditure

d. income statement

Creditors at start was N4, 650, and at close N2, 480, cash paid to suppliers during the year amounted to N12, 000. Credit purchases for the year is valued at?

a. 9830

b. 16650

c. 12000

d. 14480

The principal book of accounts where the double entry principle is completed is

called _

a. suspense account

b. day book

c. ledger

d. journals

In preparation of bank reconciliation statement, uncredited cheques are added to the

balance as per

a. cash book

b. cash statement

c. bank statement

d. uncredited cheques

The cash provided for the petty cashier is called

a. balance b/d

b. starting capital

c. financing assets

d. petty cash

A sale of goods to Ben was not posted. This is an error of

a. commission

b. omission

c. original entry

d. principle

Purchases of goods from Ben had been entered in Benson Account, this is an error of

a. transposition

b. commission

c. ommission

d. original entry

The value of stock of goods that are meant for sale which a business has at the end

of the accounting year or a stated period or date is called

a. residual goods

b. opening stock

c. goods available for sale

d. closing stock

The process of making the balance on the bank column of a cash book to agree with

the balance on the bank statement received from the bank is known as

a. account balancing

b. cash statement

c. bank reconciliation statement

d. bank checks

The cash book is divided into two sides, the left side records all cash receipts

while the right side records

a. credit sales

b. all credit purchases

c. all cash payment

d. ledgers

The cost of transporting goods meant for resale into the organisation which is

always added to purchases is called.

a. return inward

b. carriage outward

c. carriage inward

d. return outward

Money spent to acquire or purchase property of permanent nature for individuals and

organisations is called

a. revenue expenditure

b. capital expenditure

c. expenses

d. revenue expenses

The type of reserve that is distributed to the shareholder and other capital

providers in form of debenture interest, retained profit is called

a. capital reserve

b. residual reserve

c. revenue reserve

d. consolidated reserve

In conclusion

Kindly note that the above practice questions and answers are not limited to the above questions and answers.

More practice questions and answers will bw updated from time to time. So do well to come back checking for more.

Home