SSCE OBJECTIVE QUESTIONS – NOVEMBER 2004
1. Which of the following is true for a business that has no external claim on its
assets?
a. Total assets value is higher than owner’s equity
b. The assets of the business are undervalued
c. Owner’s equity equals total asset value
d. Owner’s equity is higher than total assets
2. The source document that is used to write up the sales day book is
a. Waybill
b. Credit note
c. Receipt
d. Invoice
3. The value of goods returned by a customer should be
a. Debited to purchases account
b. Credited to returns outwards account
c. Credited to sales returns account
d. Debited to returns inwards account
4. Personal accounts are made up of
a. Nominal and creditors account
b. Creditors and debtors account
c. Real and nominal account
d. Real and impersonal account
5. The book of prime entry used to record purchase of fixed asset on credit is
a. General journal
b. Purchase day book
c. Sales day book
d. Sales return journal
6. The book of entry used for recording cash purchases is
a. Cash book
b. Purchases day book
c. General journal
d. Purchases ledger
7. The following are all nominal accounts except
a. Interest expense account
b. Discount received account
c. Cash account
d. Carriage outwards account
Use the information below to answer Questions 8 to 11
The financial position of a trader on 1st January was
₵
Plant and machinery 400,000
Fixtures and equipment 850,000
Stock in trade 285,000
Debtors 480,000
Cash 120,000
Trade creditors 620,000
st
8. Calculate the capital of the trader on 1 January
a. ₵2,135,000
b. ₵1,515,000
c. ₵1,250,000
d. ₵265,000
9. The value of fixed asset is
a. ₵2,135,000
b. ₵1,250,000
c. ₵850,000
d. ₵400,000
[Link] working capital is
a. ₵1,515,000
b. ₵1,505,000
c. ₵885,000
d. ₵265,000
[Link] current ratio is
a. 5.16 times
b. 1.43 times
c. 1.23 times
d. 0.97 times
[Link] the end of the financial year, there was a credit balance of ₵430,500 on
rent and rate account. This means
a. There will be payment of ₵430,500 for rent and rate
b. The business owes ₵430,500 for rent and rates
c. ₵430,500 was charge for rent and rate for the year
d. The business will be paid ₵430,500 for rent and rate
[Link] of the following is not a wasting asset?
a. Gold mine
b. Patent right
c. Timber concession
d. Sand pit
[Link] bookkeeping entry to record cash sales paid directly into the bank is,
debit
a. Bank account, credit cash account
b. Sales account, credit cash account
c. Bank account, credit sales account
d. Cash account, credit bank account
[Link] fall in value of fixed tangible asset that has a legal life is referred to as
a. Depletion
b. Depreciation
c. Amortization
d. Appreciation
[Link] expenditure made by a business which is expected to yield a future
benefit is
a. A liability
b. A revenue
c. An expense
d. An asset
[Link] which financial statement will revenue from sales be shown
a. Trading and profit and loss account
b. The cash book
c. Cash flow statement
d. The balance sheet
[Link] which of the following situations can a debit note be issued to a
customer. The customer
a. Returns some goods sold to him
b. Is overcharged for goods sold to him
c. Has rejected some goods sold to him
d. Is undercharged for goods sold to him
[Link] of the following errors will not affect the agreement of the trial
balance?
a. A cheque for ₵123,500 was posted to the customer’s account as
₵125,300
b. Selling expense were debited in error to sales account
c. Sales of ₵600,000 was posted as ₵60,000 to the debtors account
d. Purchase of equipment of ₵8,000,000 was recorded only in the cash
book
20.A student extracted a trial balance with the following totals, debit side
₵4,350,000 and credit side ₵4,050,000. The suspense account will show a
a. Debit balance of ₵300,000
b. Credit balance of ₵300,000
c. Balance of ₵4,350,000
d. Balance of ₵4,050,000
[Link] of the following items can cause a bank statement balance to be less
than cash book (bank column) balance?
a. Cheques honoured by the bank
b. Unpresented cheques
c. Standing order payment
d. Wrong credit entry on the bank statement
22.A bank statement revealed that a debtor has paid his dent by cheque. The
adjustment entry to record this is debit
a. Debtors, credit bank account
b. Cash, credit sales account
c. Bank, credit debtor’s account
d. Bank, credit cash account
Use the information below to answer Questions 23 to 26
On September 30, 2004 a business had a balance of ₵ 24,000,000 on trade
debtors. Two days later, Kojo Mensah, a debtor was declared bankrupt and
his debt of ₵5,650,000 was declared bad.
[Link] entry to record the bad debt of ₵5,650,000 is debit
a. Bad debt account, credit Kojo Mensah account
b. Kojo Mensah account, credit bad debts account
c. Kojo Mensah account, credit sales account
d. Kojo Mensah account, credit provision bad debts account
[Link] which ledgers will the entry to record bad debts be posted?
a. Bad debts and debtor’s ledger
b. Nominal and sales ledger
c. Kojo Mensah and sales ledger
d. General and nominal ledger
[Link] the business wants to create a 10% provision for doubtful debts, the
amount involved will be
a. ₵24,000,000
b. ₵18,350,000
c. ₵5,650,000
d. ₵1,835,000
[Link] capital of a non-profit-making organization is referred to as
a. Capital surplus
b. Income and expenditure
c. Receipts and payment
d. Accumulated fund
[Link] correct equation for computing net profit or loss from incomplete
records is
a. Closing capital + opening capital – drawings
b. Opening capital + drawings – closing capital
c. Closing capital – drawings + capital introduces
d. Closing capital + drawings – closing capital
28.A cashier is given a fixed sum of money for expenses in the office. He
accounts for this sum and he is reimbursed. The method is known as
a. Imprest system
b. Fixed method
c. Petty cash method
d. Re-imbursement system
29.A petty cash voucher shows among others
a. The reason for the payment
b. The quantity of goods sold
c. Details of account to be credited
d. The amount given to the cashier
30.A computer does nothing on its own. To get things done by a computer, one
uses
a. Video display units
b. The printing unit
c. Software or programs
d. The output unit
[Link] of the following is and input a s well as output device for computer?
a. Monitor
b. Diskette
c. Mouse
d. Keyboard
[Link] a computer is commanded to ‘save’ it is
a. Analyzing data
b. Storing information
c. Making arithmetic calculations
d. Shutting down
Relate each of the statements in questions 33 to 36 to one of the following
accounting principles/concepts
I. Materiality
II. Prudence
III. Accrual
IV. Cost
V. Realization
[Link] made for 2003 must be include in the accounts for the period whether
cash has been received or not
a. I
b. II
c. III
d. V
[Link] must be made for all losses
a. III
b. IV
c. V
d. II
[Link] cannot reflect the current value of our assets in the accounts
a. II
b. III
c. IV
d. V
36.₵300,000 of rent paid relates to the next accounting year
a. I
b. II
c. III
d. IV
[Link] a firm where fluctuating capital accounts are kept, a partner’s share of
profit is
a. Credited to capital account
b. Not brought in the books
c. Credited to current account
d. Credited to appropriation account
[Link] the absence of a partnership agreement, profits and losses are shared
a. In the proportion to capital contributed by partners
b. In the profit and loss sharing ratio of partners
c. Among the partners and employees
d. Equally by partners
[Link] allotment of shares is made, applicants become
a. Allotters
b. Creditors
c. Employees
d. Shareholders
[Link] the same type and class of share can be sold at different prices. It is
referred to as
a. No par value shares
b. Par value shares
c. Ordinary shares
d. Preference shares
[Link] of the following account is used to appropriate profit of a company?
a. Profit and loss
b. Capital surplus
c. Bonus shares
d. Income surplus
[Link] dividend paid during an accounting period is
a. Transferred to the balance sheet
b. Debited to income surplus account
c. Credited to profit and loss account
d. Debited to appropriation account
The descriptions given in questions 43 to 45 relates to types of shares listed
in I to V below. Choose the option that fits the description
I. Ordinary shares
II. Treasury shares
III. Bonus shares
IV. No par value shares
V. Preference shares
[Link] share does not attract voting rights nor dividend
a. I
b. II
c. III
d. IV
[Link] share is neither issued at a discount nor at a premium
a. I
b. II
c. IV
d. V
[Link] share is issued out of retained profits to existing shareholders. No
consideration is paid for it
a. I
b. II
c. III
d. IV
[Link] the purchases account has not been prepared, the value of credit sales
can be ascertained from the
a. General ledger
b. Private ledger
c. Nominal ledger
d. Creditors ledger
[Link] of the following books of prime entry will be used to record purchase
of fixed asset on credit?
a. General journal
b. Purchases journal
c. Cash book
d. Sales day book
[Link] “3/15” is written on an invoice, it means
a. Goods should be delivered between 3 and 15 days
b. Payment for the goods should be made between 3 and 15 days
c. Goods can be rejected only within 3 and 15 days
d. A price reduction of 3% is allowed if payment is made within 15 days