CBT TUTORIAL QUESTION BANKS

ACC 101
INTROUCTION TO ACCOUNTING I
1. Accounting originated from
A. Trading
B. Stewardship
C. Banking
D. Taxation
2. The father of accounting is
A. Adam Smith
B. Karl Marx
C. Luca Pacioli
D. Keynes
3. Accounting involves all EXCEPT
A. Recording
B. Classification
C. Guessing
D. Interpretation
4. Accounting is referred to as the language of
A. Science
B. Government
C. Business
D. Law
5. Accounting information is mainly used for
A. Decoration
B. Decision making
C. Entertainment
D. Politics
6. Accounting as a profession requires
A. Informal training
B. Experience only
C. Specialized education
D. Guesswork
7. Which is a professional body in Nigeria?
A. ICAN
B. FIFA
C. WHO
D. UNESCO
8. Accounting information system helps in
A. Cooking
B. Data processing
C. Playing games
D. Singing
9. Accounting is a service activity because it
A. Produces goods
B. Provides information
C. Manufactures items
D. Sells products
10. Accounting is classified as a
A. Pure science
 B. Social science
C. Management science
D. Natural science
11. Double entry system means
A. One transaction
B. Two effects
C. No record
D. Single record
12. Accounting reports are prepared for
A. Animals
B. Users
C. Machines
D. Students only
13. Bookkeeping is mainly concerned with
A. Recording
B. Analysis
C. Forecasting
D. Auditing
14. Accounting information must be
A. Emotional
B. Biased
C. Relevant
D. Secret
15. Accounting helps in measuring
A. Happiness
B. Profit
C. Weather
D. Politics
16. The process of summarizing financial data is called
A. Recording
B. Posting
C. Summarising
D. Coding
17. Accounting communicates information through
A. Music
B. Financial statements
C. Pictures
D. Charts only
18. Accounting records must be
A. Permanent
B. Temporary
C. Oral
D. Optional
19. The main objective of accounting is
A. Profit making
B. Information provision
C. Selling goods
D. Hiring staff
20. Accounting deals with
A. Non-financial data
 B. Financial data
C. Emotional data
D. Political data
21. Which is NOT a quality of accounting information?
A. Relevance
B. Accuracy
C. Cost
D. Objectivity
22. Timeliness means
A. Early
B. Late
C. On time
D. Delayed
23. Objectivity implies
A. Bias
B. Neutrality
C. Emotion
D. Opinion
24. Completeness means
A. Partial data
B. Full data
C. No data
D. Rough data
25. Clarity means
A. Confusing
B. Understandable
C. Hidden
D. Complex
26. Financial accounting focuses on
A. Internal use only
B. External reporting
C. Production
D. Marketing
27. Cost accounting deals with
A. Profit
B. Cost control
C. Sales
D. Loans
28. Management accounting supports
A. Government
B. Managers
C. Customers
D. Suppliers
29. Auditing involves
A. Selling
B. Examination of records
C. Buying
D. Production
30. Public sector accounting relates to
A. Private firms
 B. Government
C. NGOs only
D. Banks
31. Financial accounting reports are
A. Future based
B. Historical
C. Hypothetical
D. Imaginary
32. Cost accounting helps in
A. Cost reduction
B. Sales increase
C. Hiring
D. Borrowing
33. Management accounting uses
A. Guess
B. Forecasting tools
C. Rumours
D. Assumptions only
34. Auditor expresses
A. Opinion
B. Guess
C. Complaint
D. Demand
35. Public sector accounting follows
A. Private rules
B. Government laws
C. Personal rules
D. Company policies
36. Accuracy ensures
A. Errors
B. Correctness
C. Delay
D. Confusion
37. Flexibility means
A. Rigid
B. Adaptable
C. Fixed
D. Permanent
38. Comparability allows
A. Confusion
B. Comparison
C. Deletion
D. Ignoring
39. Accounting information must be
A. Irrelevant
B. Useful
C. Hidden
D. Fake
40. Good accounting reports are
A. Biased
 B. Reliable
C. Emotional
D. Incomplete
41. Accountant is a person who
A. Teaches
B. Performs accounting functions
C. Sells goods
D. Drives
42. Accountant prepares
A. Books
B. Financial statements
C. Goods
D. Machines
43. Maintenance of books includes
A. Sales
B. Recording
C. Advertising
D. Hiring
44. Trial balance is prepared after
A. Posting
B. Selling
C. Buying
D. Hiring
45. Financial statements include
A. Cash book
B. Income statement
C. Journal
D. Ledger
46. Interpretation of accounts helps
A. Experts only
B. Non-experts
C. Students
D. Workers
47. Statutory audit is required by
A. Company
B. Law
C. Owner
D. Staff
48. Safeguarding assets involves
A. Selling
B. Protection
C. Buying
D. Lending
49. Tax services include
A. Selling
B. Tax computation
C. Hiring
D. Production
50. Financial advisory includes
A. Cooking
 B. Investment advice
C. Teaching
D. Driving
51. Management advisory involves
A. Selling
B. Decision support
C. Buying
D. Producing
52. Investigation services focus on
A. Sales
B. Fraud detection
C. Buying
D. Production
53. Accounting ensures
A. Disorder
B. Orderliness
C. Chaos
D. Confusion
54. Accountants assist in
A. Guessing
B. Planning
C. Singing
D. Acting
55. Books of accounts help to
A. Hide data
B. Show transactions
C. Delete records
D. Ignore events
56. Accountant interprets
A. Books
B. Statements
C. Goods
D. Services
57. Accounting records are
A. Temporary
B. Permanent
C. Optional
D. Imaginary
58. Internal control is used to
A. Encourage fraud
B. Prevent fraud
C. Promote error
D. Hide loss
59. Tax planning aims to
A. Increase tax
B. Reduce tax legally
C. Avoid tax illegally
D. Ignore tax
61. Financial analysis shows
A. Profitability
 B. Weather
C. Culture
D. Politics
62. Entity concept separates
A. Owner and business
B. Staff and goods
C. Profit and loss
D. Cash and bank
63. Going concern assumes
A. Closure
B. Continuity
C. Loss
D. Bankruptcy
64. Dual aspect means
A. One entry
B. Two effects
C. No entry
D. Three entries
65. Cost concept records assets at
A. Market value
B. Cost price
C. Estimated value
D. Selling price
66. Accrual concept recognizes
A. Cash only
B. Earned income
C. Paid expenses only
D. None
67. Matching concept relates
A. Income & expense
B. Assets & liabilities
C. Cash & bank
D. Profit & loss
68. Money measurement records
A. All events
B. Monetary events
C. Non-financial events
D. Personal matters
69. Prudence means
A. Overstate profit
B. Understate profit
C. Ignore profit
D. Guess profit
70. Consistency means
A. Changing methods
B. Same methods
C. No methods
D. Flexible methods
71. Materiality focuses on
A. Small items
 B. Important items
C. All items
D. None
72. Shareholders are
A. Managers
B. Owners
C. Workers
D. Customers
73. Government uses accounting for
A. Profit
B. Tax
C. Sales
D. Production
74. Employees need information for
A. Investment
B. Job security
C. Tax
D. Loan
75. Investors focus on
A. Loss
B. Returns
C. Sales
D. Cost
76. Loan providers consider
A. Profit
B. Liquidity
C. Sales
D. Assets
77. Suppliers want to know
A. Profit
B. Creditworthiness
C. Tax
D. Salary
78. Accounting information is used for
A. Entertainment
B. Decision making
C. Singing
D. Acting
79. Financial statements help
A. Cooking
B. Analysis
C. Dancing
D. Driving
80. Accounting helps in
A. Forecasting
B. Guessing
C. Acting
D. Singing
81. Users of accounting info include
A. Investors
 B. Teachers
C. Drivers
D. Actors
81. Source documents confirm
A. Ideas
B. Transactions
C. Thoughts
D. Plans
82. Invoice is used for
A. Cash sales
B. Credit transactions
C. Salary
D. Loan
83. Receipt confirms
A. Payment made
B. Payment received
C. Goods sold
D. Goods bought
84. Cheque is used to
A. Pay cash
B. Withdraw money
C. Record sales
D. Record purchases
85. Credit note shows
A. Increase
B. Refund
C. Payment
D. Sales
86. Debit note shows
A. Decrease
B. Increase
C. Refund
D. Loss
87. Subsidiary books are
A. Final accounts
B. Books of original entry
C. Ledger
D. Balance sheet
88. Sales day book records
A. Cash sales
B. Credit sales
C. Purchases
D. Returns
89. Purchases day book records
A. Cash purchases
B. Credit purchases
C. Sales
D. Returns
90. Returns inwards book records
A. Goods returned by customers
 B. Goods returned to suppliers
C. Cash
D. Bank
91. Returns outwards book records
A. Goods returned by customers
B. Goods returned to suppliers
C. Cash
D. Bank
92. Journal proper records
A. Credit sales
B. Special transactions
C. Purchases
D. Cash
93. Posting means
A. Recording
B. Transferring to ledger
C. Summarising
D. Classifying
94. Cash book records
A. Credit sales
B. Cash transactions
C. Returns
D. Purchases
95. Cash book has
A. One side
B. Two sides
C. Three sides
D. Four sides
96. Debit side of cash book shows
A. Payments
B. Receipts
C. Loss
D. Profit
97. Credit side shows
A. Receipts
B. Payments
C. Assets
D. Liabilities
98. Discount is
A. Extra charge
B. Reduction in price
C. Tax
D. Profit
99. Trade discount applies to
A. Cash sales
B. Credit sales
C. Salaries
D. Loans
100. Cash discount is given for
A. Late payment
 B. Prompt payment
C. No payment
D. Overpayment
1. Goods purchased on credit ₦50,000 from Musa. Which is correct?
A. Debit Purchases, Credit Musa
B. Debit Musa, Credit Purchases
C. Debit Cash, Credit Purchases
D. Debit Purchases, Credit Cash
2. Cash sales ₦25,000 is recorded as
A. Debit Sales, Credit Cash
B. Debit Cash, Credit Sales
C. Debit Purchases, Credit Cash
D. Debit Bank, Credit Sales
3. Paid rent ₦10,000 by cash
A. Debit Cash, Credit Rent
B. Debit Rent, Credit Cash
C. Debit Rent, Credit Bank
D. Debit Cash, Credit Bank
4. Owner introduces capital ₦100,000 cash
A. Debit Capital, Credit Cash
B. Debit Cash, Credit Capital
C. Debit Cash, Credit Sales
D. Debit Bank, Credit Capital
5. Bought furniture for ₦40,000 cash
A. Debit Furniture, Credit Cash
B. Debit Cash, Credit Furniture
C. Debit Purchases, Credit Cash
D. Debit Furniture, Credit Capital
6. Sold goods on credit ₦30,000 to John
A. Debit Sales, Credit John
B. Debit John, Credit Sales
C. Debit Cash, Credit Sales
D. Debit John, Credit Cash
7. Paid creditor ₦20,000
A. Debit Cash, Credit Creditor
B. Debit Creditor, Credit Cash
C. Debit Purchases, Credit Cash
D. Debit Sales, Credit Cash
8. Received cash from debtor ₦15,000
A. Debit Debtor, Credit Cash
B. Debit Cash, Credit Debtor
C. Debit Sales, Credit Cash
D. Debit Bank, Credit Debtor
9. Withdrawals by owner ₦5,000
A. Debit Drawings, Credit Cash
B. Debit Cash, Credit Drawings
C. Debit Capital, Credit Cash
D. Debit Drawings, Credit Capital
10. Paid salary ₦12,000
A. Debit Salary, Credit Cash
 B. Debit Cash, Credit Salary
C. Debit Bank, Credit Salary
D. Debit Salary, Credit Capital
11. Accrued salary ₦8,000
A. Debit Salary, Credit Accrued Salary
B. Debit Accrued Salary, Credit Salary
C. Debit Cash, Credit Salary
D. Debit Salary, Credit Cash
21. Prepaid rent ₦6,000
A. Debit Rent, Credit Cash
B. Debit Prepaid Rent, Credit Cash
C. Debit Cash, Credit Rent
D. Debit Rent, Credit Prepaid Rent
22. Depreciation on equipment ₦5,000
A. Debit Equipment, Credit Depreciation
B. Debit Depreciation, Credit Equipment
C. Debit Cash, Credit Equipment
D. Debit Capital, Credit Equipment
23. Bad debt written off ₦2,000
A. Debit Debtor, Credit Bad Debt
B. Debit Bad Debt, Credit Debtor
C. Debit Cash, Credit Debtor
D. Debit Capital, Credit Debtor
24. Received commission ₦4,000
A. Debit Commission, Credit Cash
B. Debit Cash, Credit Commission
C. Debit Sales, Credit Cash
D. Debit Bank, Credit Sales
25. Credit sales ₦10,000, ₦15,000, ₦5,000. Total?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
41. Credit purchases ₦20,000 and ₦30,000. Total?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦60,000
42. Sales return ₦8,000 and ₦2,000. Total?
A. ₦9,000
B. ₦10,000
C. ₦11,000
D. ₦12,000
43. Purchases return ₦6,000 and ₦4,000
A. ₦9,000
B. ₦10,000
C. ₦11,000
D. ₦12,000
61. Goods ₦50,000 less 10% trade discount
A. ₦45,000
 B. ₦40,000
C. ₦42,000
D. ₦48,000
62. ₦20,000 less 5% discount
A. ₦18,000
B. ₦19,000
C. ₦19,500
D. ₦17,000
63. Cash discount ₦1,000 on ₦10,000
A. ₦8,000
B. ₦9,000
C. ₦9,500
D. ₦7,000
81. Bought goods ₦30,000, paid ₦10,000 cash, balance credit
A. Debit Purchases 30,000; Credit Cash 10,000; Credit Creditor 20,000
B. Debit Cash 10,000
C. Debit Creditor 30,000
D. Debit Purchases 10,000
82. Sold goods ₦40,000, received ₦15,000 cash
A. Debit Cash 15,000; Debit Debtor 25,000; Credit Sales 40,000
B. Debit Sales 40,000
C. Credit Cash 40,000
D. Debit Debtor 40,000
83. Trial balance difference indicates
A. Error
B. Profit
C. Loss
D. Capital
84. Ledger is used for
A. Recording
B. Classification
C. Summarising
D. Interpretation
127. Journal entry for asset purchase on credit
A. Debit Asset, Credit Creditor
B. Debit Creditor, Credit Asset
C. Debit Cash, Credit Asset
D. Debit Asset, Credit Cash
128. Accounting is often referred to as the ________ of business.
A. Heart
B. Language
C. System
D. Framework
129. The American Institute of Certified Public Accountants (AICPA) defined
accounting as ________
A. The art of preparing reports
B. The art of recording, classifying, and summarizing financial transactions
C. The act of analyzing business activities
D. The science of measurement
130. The main objective of accounting is to provide ________
A. Financial statements to government
B. Timely and reliable information for decision-making
C. Business promotion strategies
D. Marketing data for customers
131. Which of the following is not a phase of accounting?
A. Data collection
B. Recording
C. Budgeting
D. Interpretation
132. Book-keeping primarily involves the ________ phase of accounting.
A. Interpretation
B. Recording
C. Communication
D. Analysis
133. The origin of book-keeping can be traced back to ________
A. Ancient Greece
B. Ancient Babylonia
C. The Italian Renaissance
D. Industrial Revolution
134. The father of double-entry book-keeping is ________
A. Luca Pacioli
B. Aristotle
C. John Maynard Keynes
D. Adam Smith
135. The book “Summa de Arithmetica” was published in ________
A. 1494
B. 1600
C. 1801
D. 1750
136. The double-entry system originated in ________
A. France
B. Germany
C. Italy
D. England
137. The introduction of computers to accounting has improved ________
A. Profit margins
B. Accuracy and timeliness
C. Taxation methods
D. Government control
138. The Institute of Chartered Accountants of Nigeria (ICAN) was established in
________
A. 1960
B. 1965
C. 1970
D. 1981
139. The first Nigerian to qualify as a chartered accountant was ________
A. F.C.O. Coker
B. Akintola Williams
 C. Hamza Zayyad
D. Kunle Oshindero
140. The Association of National Accountants of Nigeria (ANAN) was granted charter
status in ________
A. 1983
B. 1990
C. 1993
D. 2001
141. The main statute regulating accounting in Nigeria is ________
A. BOFIA Act 1991
B. Insurance Act 1997
C. CAMA CAP C20 LFN 2004
D. NASB Act 2004
142. The first higher institution in Nigeria to offer accounting was ________
A. University of Lagos
B. Yaba College of Technology
C. ABU Zaria
D. University of Nsukka
143. The NASB was replaced by the ________ in 2011.
A. Financial Reporting Council of Nigeria (FRCN)
B. Central Bank of Nigeria
C. SEC Nigeria
D. Federal Inland Revenue Service
144. Accounting standards in Nigeria before IFRS were called ________
A. NFRS
B. SAS
C. IAS
D. NAS
145. IFRS adoption in Nigeria officially began on ________
A. 1st January 2010
B. 1st January 2012
C. 1st January 2013
D. 1st January 2014
146. The IASC was replaced by the IASB in ________
A. 1998
B. 2000
C. 2001
D. 2003
147. IFRS aims to achieve ________
A. Multiple accounting systems
B. Global uniformity in financial reporting
C. Diverse interpretations
D. Localized reporting
148. Accounting helps reduce fraud through ________
A. Regular auditing
B. Marketing
C. Strategic management
D. Public relations
149. The branch of accounting that records revenue and expenditure of government is
________
 A. Cost accounting
B. Financial accounting
C. Government accounting
D. Auditing
150. The process of determining per-unit cost of production refers to ________
A. Management accounting
B. Cost accounting
C. Financial accounting
D. Tax accounting
151. Forensic accounting involves ________
A. Preparation of budgets
B. Detection and presentation of financial crimes in court
C. Public sector budgeting
D. Investment decisions
152. Management accounting is mainly concerned with ________
A. Statutory reporting
B. Decision-making and control
C. Tax computation
D. Cost minimization
153. Information that must be unbiased and verifiable is termed ________
A. Relevance
B. Reliability
C. Objectivity
D. Timeliness
154. Information is said to be relevant when ________
A. It contains historical data only
B. It satisfies user needs
C. It is not comparable
D. It is complex
155. Accounting information that can be compared over time exhibits ________
A. Consistency
B. Comparability
C. Materiality
D. Objectivity
156. Which of the following is not a quality of good accounting information?
A. Reliability
B. Timeliness
C. Bias
D. Relevance
157. Timeliness means information must be ________
A. Accurate
B. Made available promptly
C. Historical
D. Detailed
158. Internal users include all except ________
A. Management
B. Employees
C. Shareholders
D. Creditors
159. External users include ________
A. Directors
B. Managers
C. Suppliers
D. Employees
160. Government agencies use accounting information for ________
A. Production planning
B. Taxation and regulation
C. Marketing
D. Product development
161. Creditors are interested in ________
A. Solvency and liquidity
B. Sales turnover
C. Profitability
D. Production cost
162. Investors rely on accounting information to ________
A. Determine tax rates
B. Evaluate return and risk
C. Monitor suppliers
D. Control pricing
163. The assumption that a business will continue indefinitely is known as ________
A. Entity concept
B. Going-concern concept
C. Periodicity concept
D. Realization concept
164. The concept that separates personal affairs from business affairs is ________
A. Entity concept
B. Matching concept
C. Historical cost
D. Dual aspect
165. Revenue is recognized when the transaction is complete under the ________
concept.
A. Matching
B. Realization
C. Accrual
D. Historical cost
166. The concept that states that all expenses must be matched with revenues is
________
A. Realization
B. Matching
C. Accrual
D. Periodicity
167. The convention that discourages overstatement of profits is ________
A. Materiality
B. Consistency
C. Conservatism
D. Substance over form
168. The accounting equation is expressed as ________
A. Assets = Liabilities – Capital
B. Assets = Liabilities + Capital
 C. Assets = Income + Expense
D. Assets = Revenue – Liabilities
169. Under the accrual basis, income is recognized when ________
A. Cash is received
B. Goods are produced
C. It is earned
D. Debtors are created
170. The cash basis recognizes revenue ________
A. When earned
B. When cash is received
C. When recorded
D. When approved
171. The dual aspect concept gives rise to ________
A. Single entry
B. Double entry
C. Triple entry
D. Compound entry
172. The matching concept is closely linked with the ________ basis.
A. Cash
B. Accrual
C. Hybrid
D. Modified cash
173. The ledger is also known as the ________
A. Book of final entry
B. Book of original entry
C. Journal
D. Subsidiary book
174. The journal is referred to as the ________
A. Final book
B. Book of original entry
C. Statement of accounts
D. Cash book
175. The rule “debit the receiver, credit the giver” applies to ________
A. Real accounts
B. Personal accounts
C. Nominal accounts
D. Control accounts
176. The book used to record credit sales is called ________
A. Purchases day book
B. Sales day book
C. Journal proper
D. Ledger
177. Returns inwards are also known as ________
A. Purchases returns
B. Sales returns
C. Credit purchases
D. Bad debts
178. Contra entries appear in ________
A. Journal proper
B. Cash book
 C. Sales day book
D. Returns day book
179. The petty cash book operates on the ________ system.
A. Cash
B. Imprest
C. Accrual
D. Modified cash
180. Trade discounts are ________
A. Recorded in the ledger
B. Not part of double entry
C. Credited to profit and loss
D. Recorded in the cash book
181. Cash discounts are given to encourage ________
A. Large purchases
B. Prompt payment
C. Bulk sales
D. New customers
182. The three-column cash book includes ________
A. Cash, bank, and petty
B. Cash, bank, and discount
C. Sales, purchases, and discounts
D. Assets, liabilities, and capital
183. A trial balance is prepared to test the ________ accuracy of ledger entries.
A. Logical
B. Arithmetical
C. Analytical
D. Conceptual
184. The agreement of trial balance does not prove absence of ________
A. Mathematical errors
B. Errors of principle
C. Posting errors
D. Transposition
185. The trial balance lists ________
A. Journal entries
B. Ledger balances
C. Subsidiary books
D. Source documents
186. The total of debit balances must equal the total of ________
A. Income
B. Assets
C. Credit balances
D. Liabilities
187. Extraction of trial balance marks the end of the work of the ________
A. Auditor
B. Accountant
C. Bookkeeper
D. Manager