Financial Accounting Mock 2024

Question 1 of 50

Not disclosing a client's information without proper authority is the principle of

Question 2 of 50

Current assets are GH¢40,000 and current liabilities GH¢20,000. What is the current ratio?

Question 3 of 50

Paying workers according to the number of units they produce is

Question 4 of 50

Accounting is mainly concerned with

Question 5 of 50

Which group uses accounting information to decide whether to lend to a business?

Question 6 of 50

The concept that every transaction has two aspects is the

Question 7 of 50

Cash paid for rent is recorded by

Question 8 of 50

A two-column cash book has columns for

Question 9 of 50

Credit purchases of goods for resale are entered first in the

Question 10 of 50

A trial balance is prepared mainly to

Question 11 of 50

Net profit is added to

Question 12 of 50

Which is a non-current asset?

Question 13 of 50

Gross profit is GH¢20,000 and expenses are GH¢12,000. What is the net profit?

Question 14 of 50

A club's summary of all cash received and paid during a year is the

Question 15 of 50

In a not-for-profit organisation, capital is called the

Question 16 of 50

Where full double-entry records are not kept, capital is found by preparing a

Question 17 of 50

Direct materials are GH¢4,000, direct labour GH¢3,000 and direct expenses GH¢500. What is the prime cost?

Question 18 of 50

Overheads of GH¢60,000 are absorbed over 20,000 direct labour hours. What is the absorption rate?

Question 19 of 50

Under FIFO, materials issued to production are priced at the cost of the

Question 20 of 50

A costing method used where production passes through a series of stages, as in soap making, is

Question 21 of 50

Which is a fundamental principle of professional ethics for accountants?

Question 22 of 50

Gross profit is GH¢8,000 on sales of GH¢40,000. What is the gross profit margin?

Question 23 of 50

The quick (acid test) ratio leaves out

Question 24 of 50

Where there is no partnership agreement, profits and losses are usually shared

Question 25 of 50

The account that shows how a partnership's profit is divided among the partners is the

Question 26 of 50

The difference between actual sales and break-even sales is the

Question 27 of 50

When actual cost is less than standard cost, the variance is

Question 28 of 50

A budget that adjusts to the actual level of activity is a

Question 29 of 50

Recording assets at their original cost follows the

Question 30 of 50

Using the same accounting methods from year to year follows the

Question 31 of 50

Goods returned by a customer are recorded in the

Question 32 of 50

Discount allowed to customers is

Question 33 of 50

Recording the purchase of a van in the purchases account is an error of

Question 34 of 50

Posting a payment from Kofi to Kwame's account is an error of

Question 35 of 50

Carriage inwards is added to

Question 36 of 50

Opening cash GH¢2,000; expected receipts GH¢15,000; expected payments GH¢18,500. The closing cash balance is

Question 37 of 50

Recording revenue when goods are delivered on credit, not when cash is received, applies the

Question 38 of 50

Changing from straight-line to reducing-balance depreciation every year breaches the

Question 39 of 50

A and B share profits equally after interest on capital at 10%. Capitals: A GH¢20,000, B GH¢10,000. Profit GH¢15,000. B's total share is

Question 40 of 50

When a new partner pays for goodwill that is retained in the business, the old partners' capital accounts are

Question 41 of 50

Electricity paid GH¢2,400 during the year; GH¢300 was owing at the start and GH¢500 at the end. The expense for the year is

Question 42 of 50

Insurance paid GH¢1,800 for 18 months from 1 July. For the year ended 31 December, the prepayment is

Question 43 of 50

Opening receivables GH¢10,000; credit sales GH¢50,000; cash received GH¢45,000; bad debts GH¢1,000. Closing receivables are

Question 44 of 50

A machine costing GH¢18,000 has a 6-year life and nil residual value. Using sum-of-the-years'-digits, year 1 depreciation is

Question 45 of 50

Bonus shares are issued

Question 46 of 50

Assets rise by GH¢5,000 and liabilities rise by GH¢2,000 during a period with no drawings or new capital. Profit is

Question 47 of 50

Gross profit is GH¢30,000; mark-up on cost is 50%. Sales were

Question 48 of 50

Inventory valued at cost GH¢8,000 can only be sold for GH¢6,500 after GH¢500 selling costs. It should be valued at

Question 49 of 50

The bank statement shows an overdraft of GH¢1,200. Unpresented cheques are GH¢400 and uncredited deposits GH¢900. The cash book balance is

Question 50 of 50

A suspense account has a debit balance of GH¢90 caused by discount allowed of GH¢45 being credited instead of debited. The correction is