OAU Financial Accounting 2015/2016 Past Questions

In times of rising prices, what effects do the use of the historical cost concept have on a company's asset values and profit?

In preparing a company's bank reconciliation statement at March 2014, the following items are causing the difference between the cash book balance and the bank statement balance: (1) Bank charges N380; (2) Error by bank N1,000 (cheque incorrectly debited to the account); (3) Lodgements not credited N4,580; (4) Outstanding cheques N1,475; (5) Direct debit N350; (6) Cheque paid in by the company and dishonoured N400; Which of these items will require an entry in the cash book?

A fire on 31 July destroyed some of a company's inventory and its inventory records. The following information is available:Inventory 1 July = N318,000; Sales for July = N612,000; Purchases for July = N412,000; Inventory in good ( condition at 30 July, 2014) = N214,000; Standard gross profit percentage on sales is 25%. Based on this information, what is the value of the inventory lost?

Which of the following is an example of a liability?

Which of the following statements best describes the consistency concept?

.......... is calculated in the manufacturing account

If the balance on Suspense Account is of a material amount, then

Which branch of accounting is most concerned with the collection of detailed financial data for use in planning and controlling an entity?

Ratios can be grouped into certain categories, each of which reflects a particular aspect of the financial performance or position of an entity. Those ratios which measure the extent to which assets can be quickly turned into cash are commonly called:

Which of the following should appear in a company's statement of changes in equity? 1. Profit for the financial year 2. Amortisation of capitalized development costs 3. Surplus on revaluation of non — current assets

Which of the following statements are correct? (1) A statement of cash flows prepared using the direct method produces a different figure for operating cash flow from that produced if the indirect method is used.; (2) Rights issues of shares do not feature in statements of cash flows.; (3) A surplus on revaluation of a non - current asset will not appear as an item in a statement of cash flows; (4) A profit on the sale of a non — current asset will appear Activities in a statement of cash flows.

Which of the following statements best describes a limited liability company?

The correct double entry to record the return of goods by us to suppliers is: i. Debit: Accounts payable, Credit: Purchases; ii. Debit: Account payable, Credit: returns inwards; iii. Debit: Bank, Credit: Returns outwards; iv. Debit: Accounts payable, Credit: Returns outwards;

Borrowings by a business which are not expected to be repaid in the next year is known as

The net asset of a firm can be calculated as:

Which of the following is incorrect? Assets, Liabilities and Capital respectively (N N N)

Which of the following are Personal Account i. Land and buildings; ii. Salaries and wages; iii. Debtors; iv. Creditors

If the owner of a business takes goods for personal use, he should

A cheque paid by you, but not yet passed through the banking system is

Which of these errors would be disclosed by the trial balance?

If cost price is N9,000 and selling price is N12,000, then i. markup is 25% ii. margin is 33.3 % iii. margin is 25% iv. mark up is 33.3%

The Issued Capital of a Company is

If a gross stays high, but net profit falls this implies that

An electrical retail company is due to report lower pre - tax profits than the previous year. Management fear investor dissatisfaction. Which of the following measures before the year end could improve the draft profit figure?

Which of these methods of depreciation is not recommended by SAS No. 9?