Accounting Concepts – Page 6

FA – May 2012 – L1 – SA – Q40 – Accounting Concepts

Identifying the term for the excess of minimum royalty over actual royalty paid.

Question

The excess of minimum royalty over actual royalty paid on output is called ………………..

Answer

Find Related Questions by Tags, levels, etc.

Tags: Lease Agreements, Royalty
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

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.

Question

The series of accounting activities that take place from the beginning of the accounting period of an enterprise to the end of that period, and repeated in subsequent years, is known as …………………………..

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Cycle, Periodic Activities
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

FA – May 2012 – L1 – SA – Q26 – Accounting Concepts

Calculating the mark-up percentage based on selling price.

Question

A computer company operating retail stores in six cities in Nigeria invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on the selling price?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Mark-Up, Selling Price
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

FA – May 2012 – L1 – SA – Q18 – Accounting Concepts

Identifying the aggregate of prime cost and indirect overheads.

Question

The aggregate of prime cost and indirect overheads is:

A. Cost of goods sold
B. Cost of materials used in production
C. Market value of goods produced
D. Factory cost
E. Total overhead

Answer

Find Related Questions by Tags, levels, etc.

Tags: Costing, Factory Costs, Overheads
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

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)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Margin, Mark-Up, Pricing
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

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

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Position, Share Capital, Share Premium
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

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.

Answer

Find Related Questions by Tags, levels, etc.

Level: Level 1

Topic: Accounting Concepts
Series: MAY 2012

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.

Question

The excess of current assets over current liabilities is referred to as?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Current Assets, Current Liabilities
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q14 – Accounting Concepts

This question asks about the effect of understating closing work-in-progress in a manufacturing account.

Question

The effect of understating closing work-in-progress in a manufacturing account is that it?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Manufacturing Accounts, Work in Progress
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q12 – Accounting Concepts

This question asks about the term used for profit expressed as a percentage of the selling price.

Question

Profit expressed as a percentage of selling price is known as?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Profit Margins, Selling Price
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2011

FA – Nov 2013 – L1 – SA – Q14 – Accounting Concepts

Identifying the best depreciation method for loose tools.

Question

The best method to provide for depreciation on loose tools used in manufacturing businesses is the:

A. Reducing balance method
B. Straight line method
C. Sum of years digits
D. Revaluation method
E. Equal instalment method

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Methods, Depreciation, Loose Tools

Topic: Accounting Concepts
Series: NOV 2013

FA – Nov 2015 – L1 – SA – Q3 – Accounting Concepts

The question requires the calculation of capital using given financial figures.

Question

Using the following financial figures, calculate the capital:
Motor Van – N50,000
Furniture – N25,000
Cash – N12,500
Payables – N35,000
Loan is 30% of Payables

What is the Capital?
A. N34,500
B. N42,000
C. N52,500
D. N75,000
E. N95,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Balance Sheet, Capital, Payables
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2015

FA – May 2018 – L1 – SA – Q18 – Accounting Concepts

Identifies the accounting concept violated when expenses are not charged in the correct period.

Question

What accounting concept is violated when N50,000 cost of electricity consumed during the first year of operation of a business was not charged as expense for the year?
A. Accrual
B. Materiality
C. Historical cost
D. Business entity
E. Prudence

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Financial Statements, Violations
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2018

FA – May 2018 – L1 – SA – Q4 – Accounting Concepts

Adjustment of electricity consumed but not paid for at year-end based on accounting concept.

Question

At the end of the year, Chukwu makes a charge against the profit for electricity consumed but not yet paid, this adjustment is in accordance with the:
A. Consistency concept
B. Objectivity concept
C. Materiality concept
D. Accruals concept
E. Prudence concept

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accruals

Topic: Accounting Concepts
Series: MAY 2018

FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts

This question involves explaining different bases of accounting and the operation of a petty cash book.

Question

a. Accounting concepts are the broad principles and general assumptions underlying the preparation of financial statements.

Required:
i. Explain cash, accrual, and break-up bases of accounting. (6 Marks)
ii. State FOUR limitations associated with the cash basis of accounting. (8 Marks)

b. Mallam Isa is considering setting up a petty cash book from which to pay small expenses, however, he is not sure of how a petty cash book operates.
Required:
Explain to Mallam Isa the operation of a petty cash book. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accruals, Cash Basis, Petty Cash
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2021 – L1 – SA – Q17 – Accounting Concepts

This question calculates the profit based on capital and drawings during a period.

Question

A business proprietor failed to maintain proper records, but you managed to ascertain that his opening capital, closing capital and drawings during the year were N225,000, N260,000 and N10,000 respectively. Determine the profit for the period:
A. N25,000
B. N45,000
C. N55,000
D. N65,000
E. N75,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital, Multiple Choice, Profit
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

Question

The basic features of the single entry system of accounting are:
A. Books of accounts are not maintained and business relies only on bank statement
B. The journal records are absent and only the main ledger is kept
C. There are incomplete classifications and recording of accounting procedures
D. Only credit sales transactions and credit purchases are recorded
E. Only debit entries are made

Answer

Find Related Questions by Tags, levels, etc.

Tags: Incomplete Records, Multiple Choice, Single entry system
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2021 – L1 – SA – Q14 – Accounting Concepts

This question identifies the fixed amount given to a petty cashier.

Question

The fixed amount of money given to a petty cashier at the beginning of a period is called:
A. Float
B. Imprest
C. Petty cash
D. Cash received
E. Cash advance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Imprest System, Multiple Choice, Petty Cash
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2021 – L1 – SA – Q13 – Accounting Concepts

This question requires calculating the amount of cash paid out during a period.

Question

In a cash book, the opening balance was N70,600, closing balance was N86,600 and the total cash received during the period was N180,000. What was the amount of cash paid out during the period?
A. N89,000
B. N98,000
C. N146,000
D. N164,000
E. N186,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Book, Cash Flow, Multiple Choice, Payments
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

FA – Nov 2021 – L1 – SA – Q8 – Accounting Concepts

This question identifies which of the provided options is not an accounting concept.

Question

Accounting concepts are generally accepted principles used in the preparation and presentation of financial statements. Which of the following is NOT an accounting concept?
A. Going concern
B. Impairment
C. Matching
D. Periodicity
E. Prudence

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Financial Statements, Multiple Choice
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2021

Topic: Accounting Concepts

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – May 2012 – L1 – SA – Q40 – Accounting Concepts

Identifying the term for the excess of minimum royalty over actual royalty paid.

You're reporting an error for "FA – May 2012 – L1 – SA – Q40 – Accounting Concepts"

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.

You're reporting an error for "FA – May 2012 – L1 – SA – Q39 – Accounting Concepts"

FA – May 2012 – L1 – SA – Q26 – Accounting Concepts

Calculating the mark-up percentage based on selling price.

You're reporting an error for "FA – May 2012 – L1 – SA – Q26 – Accounting Concepts"

FA – May 2012 – L1 – SA – Q18 – Accounting Concepts

Identifying the aggregate of prime cost and indirect overheads.

You're reporting an error for "FA – May 2012 – L1 – SA – Q18 – Accounting Concepts"

FA – May 2012 – L1 – SA – Q16 – Accounting Concepts

Determining correct statements regarding margin and mark-up.

You're reporting an error for "FA – May 2012 – L1 – SA – Q16 – Accounting Concepts"

FA – May 2012 – L1 – SA – Q12 – Accounting Concepts

Determining the correct presentation of share capital and share premium after a fresh issue of shares.

You're reporting an error for "FA – May 2012 – L1 – SA – Q12 – Accounting Concepts"

FA – May 2012 – L1 – SA – Q9 – Accounting Concepts

Identifying transactions that do not affect cash and bank balances.

You're reporting an error for "FA – May 2012 – L1 – SA – Q9 – Accounting Concepts"

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.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q18 – Accounting Concepts"

FA – Nov 2011 – L1 – SA – Q14 – Accounting Concepts

This question asks about the effect of understating closing work-in-progress in a manufacturing account.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q14 – Accounting Concepts"

FA – Nov 2011 – L1 – SA – Q12 – Accounting Concepts

This question asks about the term used for profit expressed as a percentage of the selling price.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q12 – Accounting Concepts"

FA – Nov 2013 – L1 – SA – Q14 – Accounting Concepts

Identifying the best depreciation method for loose tools.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q14 – Accounting Concepts"

FA – Nov 2015 – L1 – SA – Q3 – Accounting Concepts

The question requires the calculation of capital using given financial figures.

You're reporting an error for "FA – Nov 2015 – L1 – SA – Q3 – Accounting Concepts"

FA – May 2018 – L1 – SA – Q18 – Accounting Concepts

Identifies the accounting concept violated when expenses are not charged in the correct period.

You're reporting an error for "FA – May 2018 – L1 – SA – Q18 – Accounting Concepts"

FA – May 2018 – L1 – SA – Q4 – Accounting Concepts

Adjustment of electricity consumed but not paid for at year-end based on accounting concept.

You're reporting an error for "FA – May 2018 – L1 – SA – Q4 – Accounting Concepts"

FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts

This question involves explaining different bases of accounting and the operation of a petty cash book.

You're reporting an error for "FA – Nov 2021 – L1 – SB – Q4 – Accounting Concepts"

FA – Nov 2021 – L1 – SA – Q17 – Accounting Concepts

This question calculates the profit based on capital and drawings during a period.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q17 – Accounting Concepts"

FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts

This question identifies basic features of the single-entry system of accounting.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q16 – Accounting Concepts"

FA – Nov 2021 – L1 – SA – Q14 – Accounting Concepts

This question identifies the fixed amount given to a petty cashier.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q14 – Accounting Concepts"

FA – Nov 2021 – L1 – SA – Q13 – Accounting Concepts

This question requires calculating the amount of cash paid out during a period.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q13 – Accounting Concepts"

FA – Nov 2021 – L1 – SA – Q8 – Accounting Concepts

This question identifies which of the provided options is not an accounting concept.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q8 – Accounting Concepts"

Our offerings

Contact Info

Customer

Get In Touch

admin