Topic: Accounting Concepts
Search
500
+ past questions and counting.
- 1 Marks
FA – May 2012 – L1 – SA – Q39 – Accounting Concepts
Identifying the name of the series of accounting activities from the beginning to the end of the accounting period.
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Cycle, Periodic Activities
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2012
- 1 Marks
FA – May 2012 – L1 – SA – Q16 – Accounting Concepts
Determining correct statements regarding margin and mark-up.
Question
If goods that cost N900,000 were sold for N1,200,000, which of the following statements are correct?
(i) Mark-up is 25%
(ii) Margin is 331/3%
(iii) Margin is 25%
(iv) Mark-up is 331/3%
A. (i) and (ii)
B. (i) and (iii)
C. (ii) and (iii)
D. (iii) and (iv)
E. (ii) and (iv)
Find Related Questions by Tags, levels, etc.
- 1 Marks
FA – May 2012 – L1 – SA – Q12 – Accounting Concepts
Determining the correct presentation of share capital and share premium after a fresh issue of shares.
Question
At 1 January 2011, the capital structure of Jumbo Plc was as follows:
Issued share capital, 10,000,000 ordinary shares of N1.00 each: N10,000,000
Share premium account: N500,000
On 1 September 2011, the company made a fresh issue of 500,000 shares at N1.30 each. Which of the following correctly presents the company’s share capital and share premium accounts as at 31 December 2011?
A. Share capital N10,000,000, Share premium N650,000
B. Share capital N10,500,000, Share premium N650,000
C. Share capital N10,650,000, Share premium N500,000
D. Share capital N10,150,000, Share premium N1,000,000
E. Share capital N10,000,000, Share premium N500,000
Find Related Questions by Tags, levels, etc.
- Tags: Financial Position, Share Capital, Share Premium
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2012
- 1 Marks
FA – May 2012 – L1 – SA – Q9 – Accounting Concepts
Identifying transactions that do not affect cash and bank balances.
Question
Which of the following will NOT affect cash and bank balances in the statement of financial position of a company?
A. Cash paid into the bank
B. Company’s cheque returned unpaid
C. Cheque received on account receivable paid to the bank but was returned unpaid
D. Bank charges in the statement of account
E. Cash discount on accounts receivable.
Find Related Questions by Tags, levels, etc.
- 1 Marks
FA – Nov 2011 – L1 – SA – Q18 – Accounting Concepts
This question asks for the term used to describe the excess of current assets over current liabilities.
Find Related Questions by Tags, levels, etc.
- Tags: Current Assets, Current Liabilities
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2011
- 1 Marks
FA – Nov 2011 – L1 – SA – Q14 – Accounting Concepts
This question asks about the effect of understating closing work-in-progress in a manufacturing account.
Find Related Questions by Tags, levels, etc.
- Tags: Manufacturing Accounts, Work in Progress
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2011
- 15 Marks
FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts
Prepare journal entries, ledger accounts, and a revised statement of financial position after the redemption of preference shares.
Question
Josephine Limited has an Authorized share capital of 15,000,000 Ordinary Shares of N1 each and 2,000,000 5% Redeemable Preference Shares of N1 each. The Statement of Financial Position of the company as at 31 December 2010 is as follows:
The preference shares are redeemable at N1.10 per share, and it was decided that they should be redeemed on 2 January 2011. In order to provide the necessary funds for the redemption, the short-term investments were sold for N1,600,000.
Required:
Prepare journal entries, necessary ledger accounts, and the Statement of Financial Position after the transaction has been completed.
Find Related Questions by Tags, levels, etc.
- Tags: Financial Statements, Preference shares, Redemption, Share Premium
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2012
- 1 Marks
FA – Nov 2012 – L1 – SB – Q34 – Accounting Concepts
Recognize the accounting concept for sales revenue recognition.
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Concepts, Revenue, Sales
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2012
- 15 Marks
FA – May 2013 – L1 – SB – Q6 – Accounting Concepts
This question involves preparing the current accounts, cash-in-transit and inventories-in-transit accounts, and an aggregate Statement of Financial Position for October Enterprises Limited.
Question
October Enterprises Limited has its Head office in Lokoja with branches in Ibiam and Imala. The following are the separate Statements of Financial Position of the Head Office (HO) and branches as at 31 December 2012:
Additional Information:
i. Ibiam’s current account balance with HO was arrived at after debiting ₦2,750 cash remitted to Ibiam on 31 December, which was received on 1 January the following year.
ii. Imala’s current account balance with HO was arrived at after debiting ₦8,250 value of inventories returned to Imala on 31 December, which was received in Imala on 1 January the following year.
iii. HO current account balance with Ibiam was arrived at after debiting ₦2,065 inventories returned to HO on 31 December and received in Lokoja on 5 January the following year.
iv. Imala’s current account with Ibiam was arrived at after debiting ₦4,125 inventories sent to Imala on 31 December and received in Imala on 10 January the following year.
v. HO current account with Imala was arrived at after debiting ₦13,750 cash sent to Lokoja on 31 December and received in Lokoja on 12 January the following year.
You are required to prepare:
a. Current accounts (6 Marks)
b. Cash-in-transit account (1 Mark)
c. Inventories-in-transit account (3 Marks)
d. Aggregate Statement of Financial Position as at 31 December 2012, after incorporating the above transactions. (5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Branch accounts, Cash-in-Transit, Consolidation, Current Accounts, Inventories-in-Transit
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2013
- 15 Marks
FA – May 2013 – L1 – SB – Q5 – Accounting Concepts
This question asks for journal entries to record share transactions in Xeloz Limited's books following an issue of 1,000,000 shares.
Question
Xeloz Limited offered to the public 1,000,000 ordinary shares of ₦1 each at ₦1.30 payable as follows:
- On Application: 30k
- On Allotment: 50k (premium inclusive)
- First call on shares: 30k
- Second call on shares: 20k
Applications were received for 1,420,000 shares, and the directors decided to deal with the applications on the following basis:
i. Applications for the first 600,000 shares were accepted in full.
ii. The next 800,000 applications were scaled down, so that for each two shares applied for, only one was allotted.
iii. Applications for 20,000 shares were rejected.
You are required to:
Prepare journal entries to record the above transactions in the books of Xeloz Limited. (15 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Application and Allotment, Premium, Share Issue
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2013
- 1 Marks
FA – May 2013 – L1 – SA – Q40 – Accounting Concepts
This question tests knowledge of the accounting entry for goods sent to a branch by the head office.
Question
A head office sent goods at cost plus mark-up of 25% to the branch. The invoice price of the goods was N289,200. During the period, the branch returned N10,000 worth of goods to the Head office
State the account to be credited with goods returned to Head office by the branch and at what value?
Find Related Questions by Tags, levels, etc.
- 1 Marks
FA – May 2013 – L1 – SA – Q39 – Accounting Concepts
This question tests knowledge of the accounting treatment for goods returned by a branch to the head office.
Question
A head office sent goods at cost plus mark-up of 25% to the branch. The invoice price of the goods was N289,200. During the period, the branch returned N10,000 worth of goods to the Head office
What is the value of goods that should be credited to branch account during the period?
Find Related Questions by Tags, levels, etc.
- 1 Marks
FA – May 2013 – L1 – SA – Q37 – Accounting Concepts
This question defines the term for the portion of share capital that has been received from shareholders.
Find Related Questions by Tags, levels, etc.
- Tags: Called-Up Share Capital, Paid-Up Capital
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2013
- 1 Marks
FA – May 2013 – L1 – SA – Q12 – Accounting Concepts
This question tests the understanding of capital expenditure items.
Question
Which of the following should be classified as capital expenditure?
A. The annual depreciation of leasehold premises
B. Computer repairs and maintenance cost
C. Solicitors’ fees in connection with the purchase of leasehold premises
D. The wages of the machine operators
E. The interest paid on a loan
Find Related Questions by Tags, levels, etc.
- Tags: Capital Expenditure, Financial Reporting
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2013
- 1 Marks
FA – May 2013 – L1 – SA – Q4 – Accounting Concepts
The question concerns the process of eliminating variations in accounting practice.
Question
The process to reduce or eliminate variations in accounting practice and to introduce a degree of uniformity into financial reporting is:
A. Accounting Standards
B. Accounting Concepts
C. Accounting Manuals
D. Accounting Statements
E. Accounting Records
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Standards, Financial Reporting, Uniformity
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAY 2013
