FINANCIAL ACCOUNTING THIRD TERM EXAMINATION SENIOR SECONDARY SCHOOLS (SS 1) EXAM QUESTIONS

SECTION A – OBJECTIVES

INSTRUCTION – CHOOSE THE CORRECT ANSWER FROM THE OPTIONS A – D.

1. Another name for residual value is ______.

(A) net book value

(B) scrap value

(C) depreciation value

(D) Development value

 

2. One of the following is not found on the debit side of trading account.

(A) Opening stock

(B) Closing stock

(C) Returns outward

(D) Returns inwards

 

3. One of the following is not a fixed asset on the balance sheet of a business ______.

(A) land and building

(B) freehold premises

(C) debtors

(D) motor van

 

4. One of the following is an income ______.

(A) discount allowed

(B) returns inward

(C) returns outwards

(D) Insurance

 

5. The method of depreciation that allows for an amount to be charged as depreciation for each year of expected useful life of the asset is called ______.

(A) straight line method

(B) annuity method

(C) reducing balance

(D) amortisation method

 

6. Another name for reducing balance method of depreciation is ______.

(A) straight line method

(B) diminishing balance method

(C) annuity method

(D) additional method

 

7. If a machine cost ₦30, 000 with a residual value of ₦10, 000. If it is expected to last for 5 years . What will be the depreciation value using straight line method?

(A) ₦4,000

(B) ₦5,000

(C) ₦6,000

(D) ₦ 20,000

 

8. What is 2 ½ percent of ₦25,000?

(A) ₦665

(B) ₦624

(C) ₦625

(D) ₦265

 

9. One of the following is not a method of depreciating asset.

(A) annuity

(B) amortisation

(C) reducing balance

(D) long term method

 

10. One of the following items does not benefit the bank statement under the bank reconciliation statement ______.

(A) standing order

(B) bank charges

(C) dividend

(D) bank error

Get more exam questions –  Third Term Examination Financial Accounting Senior Secondary Schools (SS 1) Exam Questions Volume 1

 

11. One of the following is not a debit side item on the balance sheet of a business.

(A) capital

(B) net profit

(C) drawings

(D) Debtors

 

12. When a return inward is deducted from sales, the answer is called ______.

(A) net loss

(B) net sale

(C) net profit

(D) gross profit

 

13. What is the formula for getting gross profit of a business ______.

(A) cost of goods sold minus net profit

(B) cost of goods sold minus sales

(C) sales minus cost of goods sold

(D) goods sold minus cost of goods

 

14. To determine the cost of goods sold ______.

(A) purchases will be added to the gross profit

(B) returns inwards will be deducted from sales

(C) closing stock will be deducted from the calculation

(D) debtors will be added to creditors

 

15. The trading account of a business is prepared to obtain ______.

(A) the gross profit

(B) net profit

(C) cost of goods sold

(D) net loss

 

16. The profit and loss account is prepare to ascertain ______.

(A) gross profit

(B) cost of goods sole

(C) sales

(D) net profit

 

17. One of the following is not the reason for the disagreement between the cash book and the bank statement balances ______.

(A) cash balance

(B) dividend

(C) standing order

(D) bank error

 

18. One of the following items does not benefit the cash book of a business ______.

(A) dividend (B) standing order

(C) credit transfer (D) unpresented cheque

 

19. The amount of money used to start a business is called ………………..

(A) capital

(B) cash book

(C) debtors

(D) creditors

 

20. One of the following is not an item under end of year adjustment?

(A) prepaid income

(B) business liability

(C) accrued expenses

(D) owing on expenses

 

21. A business is in existence basically to ______.

(A) maximize profit

(B) employ people

(C) produce goods and services

(D) distribute goods to every place in the world

 

22. All the following are balance sheet items except ______.

(A) land and building

(B) creditors

(C) sales

(D) bank overdraft

 

23. ______ is not one of the items prepared under the depreciation of fixed asset.

(A) Asset account

(B) Profit and loss account

(C) Ledger account

(D) Balance sheet extract

 

24. How is depreciation of an asset treated in the profit and loss account?

(A) As an expense

(B) As an asset

(C) As a liability

(D) As an income

 

25. What are the items that constitute the final accounts of a business?

(A) Cash book, asset account and balance sheet.

(B) Trading account, asset account and debtors account.

(C) Trading account, profit and loss account and balance sheet.

(D) Bank statement, cash book and trading account.

 

26. One of the following is not an account.

(A) Balance sheet

(B) Ledger

(C) Cash book

(D) Trial balance

 

27. In which of the following two places under final accounts is depreciation of fixed assets treated?

(A) trading account and the profit and loss account.

(B) trading account and the balance sheet.

(C) profit and loss account and balance sheet.

(D) Profit and loss account and trial balance account.

 

28. If a business has ₦ 1000 as opening stock ₦10, 000 as purchases, and ₦5,000 as closing stock. What is the cost of goods sold of the business?

(A) ₦5,500

(B) ₦15,000

(C) ₦6,000

(D) ₦4,000

 

29. The name given to the profit gotten from the preparation of profit and loss account is called ______.

(A) Net profit

(B) Gross profit

(C) Net loss

(D) Net sales

 

30. The profit gotten from trading account is called ______.

(A) Gross profit

(B) Net sales

(C) Cost of goods sold

(D) Expenses

 

SECTION B – THEORY QUESTIONS

INSTRUCTION – ATTEMPT ONLY THREE (3) QUESTIONS FROM THIS SECTION. QUESTION ONE IS COMPULSORY. 

QUESTION 1

A machine cost 12,500. It will be kept for 4 years and then sold at a scrap value of 5,120. Show the necessary accounts using:

A. reducing balance method and

B. straight line method

 

QUESTION 2

CASH BOOK

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BANK STATEMENT

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(a) Prepare an adjusted cash book.

(b) Draw a bank reconciliation statement.

 

QUESTION 3

A. Define a bank reconciliation statement.

B. State at least 5 reasons for the disagreement between a cash book and a bank statement balances with explanations.

 

QUESTION 4

A. State 5 methods of depreciation.

B. List and explain the 4 elements of depreciation.