TMA Solutions: ACC102 - Elements of Book-Keeping II

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Jed
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TMA Solutions: ACC102 - Elements of Book-Keeping II

Postby Jed » Fri Jul 06, 2018 8:11 am

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1 The following transactions relating to debtors were extracted from the books of a company for the month of January 2014: Balance as at 1st January 2014 N725,000 Cash collected during the month N375,000 Bad Debts written off N25,000 Balance as at 31st January 2014 N650,000 Total credit sales during the month of January, 2014 were:

N325,000


2 Valuing inventory at lower of cost or Net Realizable Value (NRV) is an application of the accounting concept of:

Prudence


3 Which one of the following is a qualitative characteristic of financial statements?

Relevance


4 Unpaid expenses relating to an accounting period are treated as:

Accrued expe nses


5 Marina purchased goods on a credit basis from Jamoh for N100,000 and returned half of the goods to Jamoh subsequently. Which one of the following documents is issued by Jamoh to record the return of goods?

Credit n ote


6 The IASB􀳦??s Framework identifies reliability as one of the four qualitative characteristics of financial information. Which one of the following is not an element of reliability?

Information should be timely


7 The International Accounting Standards Board􀳦??s (IASB) Framework for the Preparation and Presentation of Financial Statements (Framework) is the IASB􀳦??s conceptual framework. Which one of the following does the Framework not cover?

The format of financial statements


8 Where, in a company􀳦??s financial statements complying with International accounting standards, should you find dividends paid? 1. Income statement 2. Balance sheet 3. Cash flow statement 4. Statement of changes in equity.

3 and 4


9 Which of the following statements about bank reconciliations are correct? 1. In preparing a bank reconciliation, unpresented cheques must be deducted from a balance of cash at bank shown 2.A cheque from a customer paid into the bank but dishonoured must be corrected by making a debit entry in the cash book. 3. An error by the bank must be corrected by an entry in the cash book. 4. An overdraft is a debit balance in the bank statement.

1 and 4


10 Which of the following statements are correct? 1. A company􀳦??s authorised share capital must be included in its published balance sheet as part of shareholders􀳦?? funds. 2.If a company makes a bonus issue of ordinary shares, the total shareholders􀳦?? interest (share capital plus reserves) remains unchanged 3. A company􀳦??s statement of changes in equity must include the proceeds of any share issue during the period. 4. A company must disclose its significant accounting policies by note to its financial statements.

3 and 4 only


11 Consumer price index (CPI) or 􀳦?􀳦􀳦?􀳦􀳦?􀳦. Is on very important means determine the degree of change in price level (inflation)

retail price index


12 An accounting concept which separated the owner of the business and the business is known as:

entity concept


13 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦.occurs when certain amount of money that used to buy certain quantity of goods previously, can now only purchase fewer quantity of the same goods

inflation


14 all these are ,means of generating income of the building societies except

motor vehicle instruction


15 the primary aim of establishing a liability society is 􀳦?􀳦􀳦?􀳦

to received fund from its member and ad vance part of the fund to member of the society


16 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦.. are formed registration with the chief register of friend societies

building societie s


17 shareholders funds compose of all except

bill discounted


18 Example of federal government bill purchase on the open market

treasury bill


19 all the following are charge to appropriation account excepts

taxation


20 All the following are income except

depreciation


21 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦.. are business entitle whose main area of operation are to accept cash deposit from the public and other perform other prominent function

banks


22 Normal gross profit percentage is calculate as 􀳦?􀳦􀳦?􀳦.

normal profit + insured charges/ turnover


23 which of the following is not necessary for the purpose of compiling average clause

gross profit


24 which of these is not a terminology used in insurance claims accounting

consequential loss


25 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦. Is a period of dislocation for which the insurance was effected and is normally fixed in the policy

period of indem nity


26 which of the two main classes of lease is a non cancellable lease?

finance lease


27 which of the following is a finance lease arrangement

opening leas e


28 periodic payments made by the lesser to the lessor are called

lease paym ent


29 straight line is calculated as follows􀳦?􀳦

finance charge /d uration of lease


30 all these are treatment of finance charges except

reducing balance me thod




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Jed
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Re: TMA Solutions: ACC102 - Elements of Book-Keeping II

Postby Jed » Fri Jul 06, 2018 8:16 am

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31 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦. Is a contractual agreement between an owner, the lessor and another party the lessee which express the right to use the leased asset for an agreed period of time in return for a consideration

a lease


32 According to SAS II, treatment and disclosure of lease transaction in the book of both

leasor and lessee


33 Valuation of livestock and manorial right are carried out by 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦.

farm exper ts


34 Large farms take insurance cover for loss of livestock due to

infection or loss of cattle as a result of straying


35 one major problem with the determination of a plantation is

plantation does not usually start to produce until afte r a long gestation period


36 In using appraised value method which of the following factor should be considered?

current market value mutuality factors and the marketability of livestock


37 Cost method means 􀳦?􀳦.

aggreg ate all cost to date on each class of livestock


38 Which of the method can be used to value Arable stock?

it should be valued at cost or net realizable value


39 What is one approach to valuation of stock of live stock?

cost approach, net realizable value


40 Which of the following expenses is not exclusive to farm accounting?

vehicle repair a nd maintenance expenses


41 Which of the following account are prepared by farmer􀳦??s

trading, profit and loss account and ba lance sheet


42 What is the formula for eliminating realized profit from goods sent to branch at cost plus 25%

25/125x value of unsold stock


43 What did you understand by semi autonomous branch in the context of branch accounting

it operate almost as a separate entity independent of ite head office


44 When is the temporal method applicable for translation of the financial statement of foreign branches?

it is usually applicable when foreign branch is non autonom ous


45 State how revenue and expense are translated under the closing rate method

revenue and expenses are translated at average rate fo r the period


46 Some of the reasons why branch current account may not agree with head office current account are:

cash in transit and stock in transit


47 Transaction between the head office and independent branches are received in 􀳦?􀳦􀳦?􀳦.

current account


48 Head office branch account is a mirror of which account?

branch current account


49 One difference between an independent and dependent branch is

accounting records and books are kept by th e independent out branches


50 Sales of goods at involved price between head office and branch will give rise to one of the following if the items are not sold to an external party, at the end of the period.

unrealized profit


51 Which of the following method of translation would you recommend for an independent foreign branch

closing rate me thod


52 The liquidator􀳦??s of Adebayo limited has settle all creditor of the company except three owed N150,000. At the commencement of the liquidation, the company􀳦??s share capital was as follows: 1,000,000 10% preference share of N1 each 85 kobo paid=850. 6,000,000 ordinary share of 50 kobo each, 30 kobo paid=1800. * Calculate the amount of call on refund due to the preference shareholders

150,000 refund


53 The liquidator􀳦??s of Adebayo limited has settle all creditor of the company except three owed N150,000. At the commencement of the liquidation, the company􀳦??s share capital was as follows: 1,000,000 10% preference share of N1 each 85 kobo paid=850. 6,000,000 ordinary share of 50 kobo each, 30 kobo paid=1800. *Assume that the preference share rank prior to the ordinary share. Calculate the call per ordinary shares

5 kobo


54 The liquidator􀳦??s of Adebayo limited has settle all creditor of the company except three owed N150,000. At the commencement of the liquidation, the company􀳦??s share capital was as follows: 1,000,000 10% preference share of N1 each 85 kobo paid=850. 6,000,000 ordinary share of 50 kobo each, 30 kobo paid=1800. *If the preference share rank prior to the ordinary shares, calculate the amount of call to be made by the liquidator

N1,000,00 0


55 The effect of bankruptcy on the private estate of the bankrupt is 􀳦?􀳦􀳦?􀳦􀳦?􀳦

the private estate will be to pay the bankrupt􀳦??s debt to the extent the business asset ar e inadequate to settle the settle it


56 A company is winding up if it is 􀳦?􀳦􀳦?􀳦􀳦?􀳦

unable to pay up his debt


57 The word 􀳦??liquidation􀳦?􀳦 means 􀳦?􀳦􀳦?􀳦.

winding up


58 When a partnership asset has been pledged for the personal debt of a partner, the creditor would claim as 􀳦?􀳦􀳦?􀳦􀳦?􀳦. and creditor in the 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦 estate

secured creditor and joint estate


59 Which of the following would contribute to deficiency in liquidation of a company (i) discount on accrued liabilities (ii) liquidation fees (iii) preference divided waved by investors (iv) formation expense

II & I V


60 Which of the following is a feature of the statement of affairs prepared when a company is being liquidated?

preferen tial creditors are paid before debenture with floating securities





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Jed
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Re: TMA Solutions: ACC102 - Elements of Book-Keeping II

Postby Jed » Fri Jul 06, 2018 8:19 am

61 One use of fire year financial summary is 􀳦?􀳦􀳦?􀳦.

it may be added to forecast future performance


62 All the following are excepted to be found in published financial statement of a publicity quoted company except

value added stateme nt


63 Which of the following item is found in the company􀳦??s profit and loss account is described as exceptional item

substantial los s sustain as a result of robbery attack


64 Directors report in the financial statement need not disclose

forecast future profitability


65 Which of the following should not be classified on a current liability in a financial statement?

provision for staff gratuity


66 The generally accepted accounting principle, which should be stated in a company􀳦??s accounting polices as it related to inventory, is that stock should be valve at 􀳦?􀳦􀳦?􀳦􀳦?􀳦

lower of cost and net realizable valve


67 In accordance with section 334 of CAMA, cap c20, LFN 2004 the financial statement of a private company need not includes􀳦?􀳦􀳦?􀳦.

audit committee report


68 Which of these method of depreciation is used by company that make use of loosing tools

revaluation method


69 According to IAS 16, depreciation means􀳦?􀳦􀳦?􀳦.

systematic allocation of cost over the estimated useful life


70 Even, when the bad debts has been eliminated the accounts..

do not represent the true & fair views of the debtor


71 Bad debts are􀳦?􀳦􀳦?􀳦.

unrecoverable deb ts


72 A balance sheet of a company is prepared as follows􀳦?􀳦􀳦?􀳦􀳦?􀳦.

Balance sheet as at 31st Dec 2014


73 Published profit and loss account is usually prepared 􀳦?􀳦􀳦?􀳦􀳦?􀳦.

for the year ended D ecember 2014


74 On what basis is interest on loan recognized by banks in their P&L account

it is recognized on accrual basis but interest due for more than 90 days are suspen ded and recognized on cash basis


75 Exceptional item 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦

falls within the ordinary activities


76 An extraordinary item falls

outside the ordinary activities a nd are treated after profit on ordinary activities


77 Under the prudential guideline, facilities classified as doubtful refer to loans that have remained unpaid

for 180 􀳦?? 360 days after their due d ates


78 Which of the following is a Non-bank financial institution?

mortgage bank


79 The asset in the balance sheet of a bank are arranged in the order of

liquidity


80 The format in which the final account of a limited liability company should be published in Nigeria is prescribed by

company and allied matters act. C20 LF N 2004


81 One use of fire year financial summary is 􀳦?􀳦􀳦?􀳦.

it may be added to forecast future performance


82 All the following are excepted to be found in published financial statement of a publicity quoted company except

value added stateme nt


83 Which of the following item is found in the company􀳦??s profit and loss account is described as exceptional item

substantial loss sustain as a result of robbery attack


84 Directors report in the financial statement need not disclose

forecast future profitability


85 Which of the following should not be classified on a current liability in a financial statement?

provision for staff gratuity


86 The generally accepted accounting principle, which should be stated in a company􀳦??s accounting polices as it related to inventory, is that stock should be valve at 􀳦?􀳦􀳦?􀳦􀳦?􀳦

lower of cost and net realizable valve


87 In accordance with section 334 of CAMA, cap c20, LFN 2004 the financial statement of a private company need not includes􀳦?􀳦􀳦?􀳦.

audit committe e report


88 Which of these method of depreciation is used by company that make use of loosing tools

revaluation method


89 According to IAS 16, depreciation means􀳦?􀳦􀳦?􀳦.

systematic allocation of cost over the estimated useful life


90 Even, when the bad debts has been eliminated the accounts..

do not represent the true & fair views of the debtor




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Jed
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Re: TMA Solutions: ACC102 - Elements of Book-Keeping II

Postby Jed » Fri Jul 06, 2018 8:22 am

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91 Bad debts are􀳦?􀳦􀳦?􀳦.

unrecoverable deb ts


92 A balance sheet of a company is prepared as follows􀳦?􀳦􀳦?􀳦􀳦?􀳦.

Balance sheet as at 31st Dec 2014


93 Published profit and loss account is usually prepared 􀳦?􀳦􀳦?􀳦􀳦?􀳦.

for the year ended D ecember 2014


94 On what basis is interest on loan recognized by banks in their P&L account

it is recognized on accrual basis but interest due for more than 90 days are suspen ded and recognized on cash basis



95 Exceptional item 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦

falls within the ordinary activities


96 An extraordinary item falls

outside the ordinary activities a nd are treated after profit on ordinary activities


97 Under the prudential guideline, facilities classified as doubtful refer to loans that have remained unpaid

for 180 􀳦?? 360 days after their due d ates


98 Which of the following is a Non-bank financial institution?

mortgage bank


99 The asset in the balance sheet of a bank are arranged in the order of

liquidity



100 The format in which the final account of a limited liability company should be published in Nigeria is prescribed by

company and allied matters act. C20 LF N 2004


101 One use of fire year financial summary is 􀳦?􀳦􀳦?􀳦.

it may be added to forecast future performance


102 All the following are excepted to be found in published financial statement of a publicity quoted company except

value added stateme nt


103 Which of the following item is found in the company􀳦??s profit and loss account is described as exceptional item

substantial los s sustain as a result of robbery attack


104 Directors report in the financial statement need not disclose

forecast future profitability



105 Which of the following should not be classified on a current liability in a financial statement?

provision for staff gratuity


106 The generally accepted accounting principle, which should be stated in a company􀳦??s accounting polices as it related to inventory, is that stock should be valve at 􀳦?􀳦􀳦?􀳦􀳦?􀳦

lower of cost and net realizable valve


107 In accordance with section 334 of CAMA, cap c20, LFN 2004 the financial statement of a private company need not includes􀳦?􀳦􀳦?􀳦.

audit committe e report


108 Which of these method of depreciation is used by company that make use of loosing tools

revaluation method


109 According to IAS 16, depreciation means􀳦?􀳦􀳦?􀳦.

systematic allocation of cost over the estimated useful life


110 Even, when the bad debts has been eliminated the accounts..

do not represent the true & fair views of the debtor


111 Bad debts are􀳦?􀳦􀳦?􀳦.

unrecoverable deb ts


112 A balance sheet of a company is prepared as follows􀳦?􀳦􀳦?􀳦􀳦?􀳦.

Balance sheet as at 31st Dec 2014


113 Published profit and loss account is usually prepared 􀳦?􀳦􀳦?􀳦􀳦?􀳦.

for the year ended D ecember 2014


114 On what basis is interest on loan recognized by banks in their P&L account

it is recognized on accrual basis but interest due for more than 90 days are suspend ed and recognized on cash basis


115 Exceptional item 􀳦?􀳦􀳦?􀳦􀳦?􀳦􀳦?􀳦

falls within the ordinary activities


116 An extraordinary item falls

outside the ordinary activities an d are treated after profit on ordinary activities


117 Under the prudential guideline, facilities classified as doubtful refer to loans that have remained unpaid

for 180 􀳦?? 360 days after their due d ates


118 Which of the following is a Non-bank financial institution?

mortgage bank


119 The asset in the balance sheet of a bank are arranged in the order of

liquidity

120 The format in which the final account of a limited liability company should be published in Nigeria is prescribed by

company and allied matters act. C20 LF N 2004



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