Nature and Significance of Accounting Generix Content - Nature and Significance of Accounting
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JAMB questions for "Financial Accounting :: Nature and Significance of Accounting"
Q1
Which of the following branches of accounting was first developed?
A
Cost accounting
B
Financial accounting
C
Management accounting
D
Petroleum accounting
E
Q2
The accounting convention which state that the performance of a business should be determined by matching all expenses against all revenue is
A
accruals
B
materiality
C
objectivity
D
periodicity
E
Q3
The process of bookkeeping includes records produced from
A
ledgers
B
source documents
C
minutes of meetings
D
intuitive reasoning
E
Q4
One of the major features of bookkeeping is that it
A
provides permanent records for all financial transactions
B
is futuristic in nature
C
accepts responsibility for all wrong postings
D
does not give room for double entry procedure
E
Q5
Which of the following accounting conventions suggests that accountant should use a method of valuation that understates rather than over states results?
A
Conservatism
B
Historical
C
Monetary
D
Cost
E
Q6
A financial analyst needs accounting information to
A
maintain the production section of the business
B
know why transactions cause increases and decreases in assets
C
advice on how to manage the manage the business
D
know how to record transactions in T account
E
Q7
The fourth stage of the accounting information system is
A
recording
B
interpreting
C
summarizing
D
classifying
E
Q8
One of the benefits of book-keeping records is that they
A
give prospective investors accurate and direct information for decision-making
B
provide the public and creditors with details of the operations of an entity
C
give legal backing to all the transactions indertaken by a business entity
D
provide information without which the task of management would be difficult
E
Q9
A major factor that enhanced the early development of accounting is the
A
Industrial Revelution
B
growth of trade and commerce
C
development of arithmetic
D
invention of writing
E
Q10
The accounting principle that is applied to check arbitrary actions on the part of accountants is
A
objectivity
B
consistency
C
realization
D
materiality
E
Q11
The accounting entry to record the premium on goodwill is to debit
A
goodwill and credit revaluation
B
cash and credit old partners' capital
C
capital and credit assets
D
assets and credit capital
E
Q12
The two legally recognized professional accounting bodies in Nigeria are the
A
Institute of Certificate Public Accountants of Nigeria and the Institute of Cost and Management Account of Nigeria
B
Association of Accountants of Nigeria and the of National Institute of Management Accountant of Nigeria
C
Institute of Chartered Accountants of Nigeria and the Association of Nigeria Accountants of Nigeria
D
Nigerian Accounting Association and the Executive Cost and Management Accountants of Nigeria
E
Q13
Verifiability in accounting is only possible when there are
A
minutes of meetings
B
payment vouchers
C
source documents
D
audit certificates
E
Q14
Which accounting concept supports the assertion that economic reality takes precedence over legal issues?
A
Realization concept
B
Substance over form
C
Conservatism
D
Measurement concept
E
Q15
The recording phase of accounting is known as
A
bookkeeping
B
trial balancing
C
ledger accounting
D
final accounting
E
Q16
Four broad classifications of overheads are
A
production, selling, distribution and material
B
production, selling, distribution and administration
C
selling, production and wages
D
distribution, selling, administration and material
E
Q17
The main objective of accounting report is to provide information about
A
the efficacy of assets
B
a company's shareholding
C
company's economic resources
D
an entity's management
E
Q18
Cost accounting entails the provision of infomation
A
to shareholders
B
to stockholders
C
for decision making
D
for investment purposes
E
Q19
The main objective of bookkeeping is to record economic
A
transactions systematically for routine managerial decision-making
B
event clearly to ensure adequate check and balances
C
events learly to facillitate straategic managerial decision-making
D
transactions systematically to ascertain the financial position of a business
E
Q20
The basic role of accounting is to
A
detect fraud
B
attest to financial statements
C
measure performance
D
protect shareholders
E
Q21
The need for changes in accounting theory in Nigeria was influenced by the
A
dynamics of commercialization and privatization policies
B
growth in size of business units
C
introduction of the structural adjustment programme
D
inconvertibility of the nation's currency
E
Q22
A basic unifying concept in accounting implies that
A
where creditor's account is zero, the assets are equal to the owners' equity
B
there should be a balance in the creditor's account in order to measure total assets
C
revenues should be supported by invested and owners' capital
D
total assets can be less than liabilities and equity
E
Q23
The act establishing the Institute of Chartered Accountants of Nigeria (ICAN) came into force on
A
1st September 1960
B
1st October 1960
C
1st October 1963
D
1st September 1965
E
Q24
Cost reports for the attention of management should reflect
A
as much details as possible
B
summary figures only
C
details of non-controllable expenses
D
cost and comparable data useful in decision making
E
Q25
Responsibility accounting is particularly concerned with
A
Historical accounting
B
Controllable costs
C
Storekeeping
D
Valuation of stock
E
Q26
An advantage of the use of the voucher system is that it
A
reduces the number of cheques that will be written during any given period
B
provides a highly flexible system for handling unusual transaction
C
provides a comprehensive record of business done with particular suppliers
D
ensures that every expenditure is reviewed and verified before payment is made
E
Q27
A business transaction is recorded in the book of accounts when the
A
owner of the business invests his ₦10,000 in another company
B
business retains part of its profits for future expansion purposes
C
business applies for overdraft facilities from its bankers
D
owners of its business collects ₦5,000 from the accountant
E
Q28
Erroneous real arrangement of financial figures such as writing ₦624 as ₦264 is called
A
transposition
B
principle
C
commission
D
omission
E
Q29
In preparing accounting records, the owners of a business and the business are treated as
A
the same person
B
having business relationship
C
separate legal entities
D
partners
E
Q30
Creditors use accounting information for the purpuse of
A
planning sales to a company
B
controlling a company affairs
C
investing in a company
D
assessing a company's liquidity
E
Q31
The most important reason for studying accounting is that
A
the information provided by accounting is useful in making decisions
B
accounting plays an important role in a society
C
the study of accounting leads to a challenging career
D
accounting provides gross profit information
E
Q32
Which of the following factors has aided the development of Accounting?
A
The emergence of nation states
B
The discovery of mineral resources in commercial quantity
C
The growth in size of businesses and the separation of ownership and management
D
The development and management of a sophisticated monetary system
E
Q33
Which of the following concepts stipulates that accounting profit is the difference between revenue and expenses?
A
Accrual concept
B
Conservation concept
C
Prudence concept
D
Materiality concept
E
Q34
An effective accounting system should provide information
A
on new products and methods
B
for customer feedback and requirements
C
on internal and external reporting for managers and third parties
D
for promoters, directors, labour unions and distributors
E
Q35
Which of the following accounting records are source documents?
A
Journals and ledgers
B
Sales invoice and cash book
C
Cash book and debit note
D
Sale invoice and debit note
E
Q36
The term, 'accounting period' is used to refer to the 
A
time span during which taxes are paid to the Inland revenue Board
B
budget period, usually one year, relied on by the accountant
C
time span, usually one year covered by financial statement
D
period within which debtors are expected to settle accounts
E
Q37
Assigning revenues to the accounting periods in which goods were sold or services rendered and expenses incurred is known as
A
passing of entries
B
consistency convention
C
matching concept
D
adjusting for revenue
E
Q38
The accounting convention which states that profit must not be recognized while all loses should be adequately provided for is termed 
A
materiality
B
objectivity
C
consistency
D
conservatism 
E
Q39
Accounting information is used by investors and creditors of a company to predit
A
future cash flows of the company
B
future tax payments of the company
C
potential merger candidates for the company
D
appropriate remunerations for the company's staff
E