Past question

ACC203 introduction to accounting Past Questions & Answers

1: The beginning of accounting was _______

Answer: Stewardship

2: In accounting permanent records should be created whereby both the ______and the owner can have access to present and past events.

Answer: Steward

3: The owner of the business is referred to as an ____

Answer: entrepreneur

4: The earliest known originator of book keeping system was…………….

Answer: Rev. Father Lucas Pacioli

5: 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

6: classification and _______of financial information for both trading and non-trading organizations.

Answer: Interpretation

7: Sales represents total of all credit and cash sales made to a___________

Answer: Third party

8: Accounting requires the acquisition of a specialized knowledge over a given period of time which involves the combination of_________

Answer: Theory and Practice

9: Reserves are amounts set aside out of profits earned by a company

and constitute part of __________fund.

Answer: Shareholders

10: Accounting is a ________because is a means of communicating business information.

Answer: Language

11: Accounting does not have ________ products that can be bought and sold like the manufacturing companies.

Answer: Physical

12: 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

14: The maintenance and recording of the books of accounts in a_____manner similar to procedures in a laboratory make accounting a science.

Answer: Systematic

15: Accounting should include enough facts and _____to satisfy the need of the users.

Answer: Figures

16: Ability to trace all accounting transactions in a report to the source documents is important for ________to be realized.

Answer: Objectivity

17: 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

18: Accounting report should be prepared in a way that allows for quick and easy ________from one period to another.

Answer: Comparability

19: Accounting report is _______ if it is easy to change, adjust and adaptable to suit different kinds of users.

Answer: Flexible

20:organisation which shows the company  assets and liabilities at a particular date.

Answer: Financial position

21: Cost accounting helps organization in controlling and _______their


Answer: Minimizing

22: Management accounting is a branch of accounting that uses different _______analysis tools to project for the future of an organization.

Answer: Quantitative

23: Auditing is an ______examination of the books of accounts, records and financial statement of an organization by an independent person called an auditor.

Answer: Independent

24: Without the accountants, financial statements will not make any to many people.

Answer: Meaning

25: The external auditing service provided by ________is to ensure that complete and reliable financial statements are published or released to the public.

Answer: Accountants

26: Every business organization is expected to keep its__________accurately and in an orderly manner.

Answer: Financial records

27: Accounting is used to ________the financial performance of an organization

Answer: Measure

28: Accounting makes use of _______financial data in forecasting future performance and financial position of different organizations.

Answer: Historic

29: Shareholders are the _______of a company and they are interested in the performance of the company

Answer: Owners

30: 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

31: 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

32: The laid down rules that are complied with in the preparation of accounting records for any organization is _______

Answer: Accounting concept

33: The tradition for the preparation of accounting records is__________

Answer: Accounting convention

34: 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

35: 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

36: The convention of prudence states that profit should not be ______when recognizing profit to be recorded in financial statement, but the profit should be based on actual profit earned or realized for the particular period.

Answer: Anticipated

37: 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

38: A bank teller is used to ________money (cash and cheques) into an account in a bank.

Answer: Pay

39: Credit note is a document showing a ______in favour of the receiver.

Answer: Claim

40: Discount can be defined as an _______given to customers to enable them buy in large quantity, obtain profit margin price

Answer: Inducement

41: Quantity discount is a price ______given to a customer who buys in

large quantity for consumption and not for re-sale.

Answer: Reduction

42: 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.


43: 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

44: The cash book is a book of original entry used to record all _____transactions.

Answer: Cash

45: 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

46: The double entry principle states that for every debit entry for a transaction, there must be a corresponding ________for the same transaction.

Answer: Cost accounting

47: Ledger is the ______of accounts where the double entry principle is completed.

Answer: Principal book

48: Error is an accounting terminology used to signify ______made while recording and/or posting financial transactions.

Answer: Mistakes

49: Expenditures are the money spent in an organization in order to generate _______either now or in the future.

Answer: Income

50: The manual accounting system refers to the keeping of accounting record by __________of relevant posting in the books of accounts.

Answer: Handwritten

1: The accounting report should be ………..enough to give the user full information with which decision could be reached.

Answer: Complete

2: Good accounting information should be ………..to the purpose for which it is prepared.

Answer: relevant

3: The owner of a business is referred to as __________

Answer: an entrepreneur

4: Financial accounting is prepared on ___________

Answer: Historical basis

5: Financial accounting is also used to determine the ……….of an organization

Answer: Financial position

6: Accounting as a form of knowledge and profession consist of different branches except……………….

Answer: Commerce

7: To find out the cost of goods produced or services rendered in an organization we need……………

Answer: Cost accounting

8: The acquisition of key business information that includes income, expenditure, profit, assets and liabilities are made available from ____________ prepared by accountants.

Answer: Financial Statement

9: In business, __________ refers to the process of allocating funds to meet the needs of your business.

Answer: Finance

10: The sole proprietorship business is also referred to as a__________

Answer: One-man- business

11: Which of the following is not a nature of accounting?

Answer: Auditing

12: Utility is the satisfaction derived from consuming a particular product or accepting a service.

Answer: Economist point of view

13: For financial statements to make meaning to many people, one of the following must be prepared by an accountant.

Answer: Accounting ratio

14: To investigate the adequacy of tax paid by organizations, government engages the services of……….

Answer: Accountant

15: To safeguard the assets of an organization, an Accountant employs

one of the following………….

Answer: Internal control system

16: The two government recognized accounting professional bodies in Nigeria are:

Answer: Association of National Accountants of Nigeria and Institute of

Chartered Accountants of Nigeria

17: One of the following is not a direct user of accounting information

Answer: Supplier

18: Business documents that confirm the occurrence of financial transaction between two or more parties are called…….

Answer: Source documents

19: The total of goods returned to supplier from the purchases returns day book is transferred to the …………of the returns outwards


Answer: Credit side

20: The following except ____________ are recorded in the Journal Proper 

Answer: Recording of credit sales

21: The left side of a cash book is called_____________________

Answer: Debit side

22: When cash is withdrawn from the bank to the office________________

Answer: Credit – The bank column.

23: Contra entry can be found in___________

Answer: Two column cash book

24: When liabilities value reduces, the liabilities account should be___________.

Answer: Debited

25: The advantages of trial balance exclude one of the following_______.

Answer: It helps in preventing errors.

26: One of the following errors does not affect the agreement of trial balance

Answer: Errors of principle

27: 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

28: Motor vehicle purchases of N660,000 was entered in the purchases account. Correct the errors.

Answer: Credit -Purchases account

29: The cost of transporting goods meant for resale into the

organisation is called___

Answer: Carriage Inward

30: Assets that add value to the organisation but they cannot be seen

by their nature are called_________

Answer: Intangible assets

31: 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

32: Reserve which is distributed to the shareholder and other capital

providers in form of debenture interest, retained profit is called


Answer: Revenue Reserve

33: Any transactions that will increase the customers indebtedness to the organization are ………to the debtors control account

Answer: Debited

34: A statement sent periodically usually once a month by a buyer to

his suppliers is called____________

Answer: Creditor Statement of Account

35: The causes of the differences between the bank statement and the cash book excludes one of the following____________________

Answer: Signed cheques

36: To prepare Bank reconciliation statement start with Balance as per adjusted cash book and add_______

Answer: Unpresented cheques

37: 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

38: The traditions and customs adopted by accountants for the preparation of financial statements excludes one of the following

Answer: Money Measurement

39: A document that is used to record full details of money paid for a particular purpose is called______________

Answer: Payment Voucher

40: One of the following is not a subsidiary book of account_______

Answer: Ledger account

41: Where an account of capital expenditure is treated as revenue expenditure item it is called_______________

Answer: Errors of Principle

42: 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

43: One of the following is not a branch of accounting.

Answer: Investigative accounting

44: 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

45: The revenues that are generated outside the sales of goods or services that the firm regularly deals with are called

Answer: Discount received

46: Essential features of a business organization exclude one of the following

Answer: The need to take risk

47: The functions of an accountant exclude one of the following.

Answer: Stock brokering

48: The professional person that reports on the true and fair view of nan organization financial statements is

Answer: Auditor

49: 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

50: 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

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