Free Printable Accounts CXC Review

1.

the following questions are based on cooperatives

Select Begin to start

a)

Begin

b)

Start

2.

Co-operatives are owned by ___________________

a)

a single person

b)

the auditors

c)

the Board of Director

d)

the shareholders

3.

Which of the following are two principles of co-operatives?

a)

Going concern and matching

b)

Democratic control and prudence

c)

Open membership and community building

d)

Independence and marketing

4.

Which of the following items relate to co-operatives?

a)

Patronage dividends and ordinary dividends

b)

Ordinary dividends and dividends on capital

c)

Preference dividends and ordinary dividends

d)

Patronage dividends and dividends on capital

5.

Which of the following will constitute the financial statements of co-operatives?

a)

Trading Account and Profit and Loss Account

b)

income and Expenditure Account and Balance Sheet

c)

Receipt and Payment Account and Income and Expenditure Account

d)

Trading Account and Balance Sheet

6.

In the accounts of a co-operative, a statutory transfer represents a/an _____________________

(think where it is place in the financial statements)

a)

reserve

b)

asset

c)

expense

d)

liability

7.

For co-operatives, interest on deposits to members is a/an _________________________

a)

reserve

b)

asset

c)

liability

d)

expense

8.

A statutory deduction for co-operatives is calculated as a percentage of _______________________

a)

surplus

b)

total assets

c)

income

d)

capital

9.

Which of the following represents forms of co-operatives?

a)

Consumer, financial and service.

b)

Worker, marketing and patronage dividends.

c)

Statutory transfers, share capital and marketing.

d)

Financial, reserves and surplus.

10.

Undistributed profits are __________________________

a)

distributed as dividends

b)

carried forward to the next financial year

c)

paid out as honoraria

d)

debited to the Income and Expenditure Account

11.

A deficit arises when ____________________________

a)

assets are more than liabilities

b)

liabilities are more than assets

c)

income is less than expenditure

d)

expenditure is less than income

12.

the following questions are based on LLC

select begin to start

a)

Begin

b)

Start

13.

The maximum amount of capital that a limited company can raise from the public by issuing shares is called

a)

authorised share capital

b)

issued share capital

c)

paid-up capital

d)

called-up capital

14.

What is the purpose of an Appropriation Account?

a)

To determine net profit.

b)

To record capital raised by issuing shares.

c)

To show how net profit is distributed.

d)

To determine closing capital.

15.

Acompany declares a rate of dividends of 15%. A shareholder owning 2,000 $1 ordinary shares will recerve dividends worth

a)

$900

b)

$15

c)

$2,000

d)

$300

16.

Which one of the following is ranked in order of priority?

a)

Ordinary shares, preference shares, debentures

b)

Debentures, preference shares, ordinary shares.

c)

Preference shares, ordinary shares, debentures.

d)

Debentures, ordinary shares, preference shares

17.

Questions 17-20 are based on the following:

Beverage Ltd has an authorised share capital of 90,000 ordinary shares of $2 each and 80,000 5% preference shares of $3 each. All the shares were issued. The company requested the shareholders to pay $1 on each ordinary share and $1 on each preference share. They were all paid for except one shareholder who did not pay $1,000.

17. Authorised capital is ________________________.

a)

90,000 ordinary shares at $2 each

b)

80,000 5% preference shares at $2 each

c)

90,000 ordinary shares at $2 each and 80,000 5% preference shares at $2 each

d)

None of the above.

18.

Beverage Ltd has an authorised share capital of 90,000 ordinary shares of $2 each and 80,000 5% preference shares of $3 each. All the shares were issued. The company requested the shareholders to pay $1 on each ordinary share and $1 on each preference share. They were all paid for except one shareholder who did not pay $1,000.

Called-up capital is _________________

a)

$10,000

b)

$80,000

c)

$170,000

d)

$90,000

19.

Beverage Ltd has an authorised share capital of 90,000 ordinary shares of $2 each and 80,000 5% preference shares of $3 each. All the shares were issued. The company requested the shareholders to pay $1 on each ordinary share and $1 on each preference share. They were all paid for except one shareholder who did not pay $1,000.

Calls in arrears are ________________________

a)

$10,000

b)

$90,000

c)

$1,000

d)

$80,000

20.

Beverage Ltd has an authorised share capital of 90,000 ordinary shares of $2 each and 80,000 5% preference shares of $3 each. All the shares were issued. The company requested the shareholders to pay $1 on each ordinary share and $1 on each preference share. They were all paid for except one shareholder who did not pay $1,000.

Paid-up capital is ___________________.

a)

$170,000

b)

$169,000

c)

$1,000

d)

$5,000

21.

The rate of returns paid to shareholders is called ________________________

a)

interest

b)

dividends

c)

share of profits

d)

fixed asset

22.

State TRUE or FALSE for each of the following statements.

(a) Debenture holders and shareholders are the same. ued capital that has been paid by the shareholders.

a)

TRUE

b)

FALSE

23.

State TRUE or FALSE for each of the following statements.

B) It is always better to be a preference shareholder than an ordinary shareholder.

a)

TRUE

b)

FALSE

24.

State TRUE or FALSE for each of the following statements.

C) The day-to-day operations of a limited liability company are carried out by a Board of Directors.

a)

TRUE

b)

FALSE

25.

State TRUE or FALSE for each of the following statements.

(d) The Board of Directors consists of shareholders who have purchased the majority of shares in the limited liability company

a)

TRUE

b)

FALSE

26.

State TRUE or FALSE for each of the following statements.

(e) Private limited companies can raise capital by selling shares on the Stock Exchange.

a)

TRUE

b)

FALSE

27.

State TRUE or FALSE for each of the following statements.

(f) Ordinary shareholders are entitled to vote at the company’s Annual General Meeting.

a)

TRUE

b)

FALSE

28.

State TRUE or FALSE for each of the following statements.

g) Preference shares have a fixed rate of dividends attached to them.

a)

TRUE

b)

FALSE

29.

State TRUE or FALSE for each of the following statements.

(h) Authorised share capital and issued share capital can be the same.

a)

TRUE

b)

FALSE

30.

State TRUE or FALSE for each of the following statements.

(j) Paid-up capital represents the issued capital that has been paid by the shareholders.

a)

TRUE

b)

FALSE

31.

the following questions are based on Non Profit Organisation

select begin to start

a)

Begin

b)

Start

32.

Non-trading concern refers to the following except ___________________________

a)

clubs

b)

societies

c)

associations

d)

sole proprietorship

33.

The Receipts and Payments Account is very similar to the ________________________.

a)

Balance Sheet

b)

Profit and Loss Account

c)

Cash Book

d)

Trading Account

34.

The opening debit balance of the Receipts and Payments Account represents ________________

a)

an expense

b)

accumulated fund

c)

aliability

d)

cash in hand/bank

35.

The Income and Expenditure Account is very similar to the _________________.

a)

Profit and Loss Account

b)

Cash Book

c)

Trading Account

d)

Balance Sheet

36.

The items recorded in the Income and Expenditure Account include ____________________

a)

bank overdraft

b)

asset items

c)

liability items

d)

revenue items

37.

The term next best to describe ‘accumulated fund’ is ___________________________.

a)

capital

b)

mortgage

c)

bank overdraft

d)

surplus

38.

Accumulated fund is calculated from ________________________________

a)

Fixed assets + Current assets — Current liabilities

b)

Current assets — Current liabilities

c)

Fixed assets — Current liabilities

d)

Fixed assets + Current assets

39.

Accumulated fund is recorded in the __________________________.

a)

income and Expenditure Account

b)

Receipts and Payments Account

c)

Balance Sheet

d)

Trading Account

40.

the following questions are based on incomplete records

select begin to start

a)

Begin

b)

Start

41.

incomplete records refer to the following except for _____________________

a)

partial records

b)

Cash Book records only

c)

double-entry records

d)

single-entry records

42.

Which one of the following is correct in the calculation of net profit?

a)

Final capital — Drawings - initial capital

b)

Final capital + Drawings — Initial capital

c)

Initial capital - Drawings — Final capital

d)

Initial capital + Drawings — Final Capital

43.

In the preparation of the Total Debtors’ Account, which of the following is not recorded?

a)

Returns inwards

b)

Discount received

c)

Discount allowed

d)

Bad debts

44.

In the preparation of the Total Creditors’ Account, which of the following does not fit into this account?

a)

Payment to creditors

b)

Discount received

c)

Returns inwards

d)

Returns outwards

45.

Which of the following is NOT an asset?

a)

Debtors

b)

Accrued income

c)

Accrued expenses

d)

Stock

46.

Which of the following is NOT a liability?

a)

Bank overdraft

b)

Loan to workers

c)

Creditor

d)

Income in advance

47.

the following questions are based on manufactoring

select begin to start

a)

Begin

b)

Start

48.

Which one of the following is NOT direct labour?

a)

Salesman

b)

Seamstress

c)

Stitcher

d)

Packer

49.

Opening work in progress is ____________________________

a)

added to the cost of production

b)

found in the Balance Sheet only

c)

added to cost of goods sold

d)

subtracted from production cost

50.

In the Balance Sheet, stock comprises ______________________

a)

closing stock

b)

finished goods only

c)

raw materials, work in progress

d)

raw materials, work in progress and finished goods

51.

Which of the following expenses will be reflected in the Profit and Loss Account?

a)

Production manager's salary

b)

Factory power

c)

Depreciation of office machinery

d)

Depreciation of factory plant and machinery

52.

the following questions are based on partnership accounts

select begin to start

a)

Begin

b)

Start

53.

An ordinary partnership consists of ____________________

a)

2 to 40 partners

b)

2 to 20 partners

c)

2 to 10 partners

d)

2 to 30 partners

54.

The characteristics of a partnership are listed below except for __________________________________________

a)

mutual agency

b)

limited liability

c)

co-ownership of property

d)

non-taxable entity

55.

Which of the following is NOT incorporated in the Partnership Act?

a)

All drawings are to be charged interest.

b)

No interest is to be charged on capital.

c)

All loans are to be charged interest.

d)

Profit and loss are to be shared equally.

56.

‘The relationship that subsists between persons carrying on a business in common with a view to profit.’ The definition best describes _________________________

a)

a partnership

b)

a company

c)

a corporation

d)

a sole proprietorship

57.

The number of partners required for a bank partnership is _________________________________

a)

2 to 20

b)

2 to 10

c)

2 to15

d)

2 to 5

58.

When is the Partnership Act enforced?

a)

When the partner’s salary and interest on capital are not incorporated in the Partnership Deed

b)

When capital contribution by the partners varies.

c)

Where there is a Partnership Deed but there are differences of opinion between the partners.

d)

When there is no Partnership Deed.

59.

Which one of the following items cannot be recorded in the Appropriation Account?

a)

Partner’s salary

b)

Interest on drawings .

c)

Interest on capital.

d)

Interest on loan from partners

60.

Assuming a partner’s salary of $2,500 appeared on the debit side of the Trial Balance and the Partnership Agreement states that a partner’s salary of $3,500 is be paid to the working partner. Which amount do you record in the Current Account of the partner concerned?

a)

$6,000

b)

$3,500

c)

$1,000

d)

$2,500

61.

Agreed amount payable to partners in respect of duties discharged by them is known as ________________________

a)

partner’s profit

b)

partner’s salary

c)

partner’s interest

d)

partner’s drawings

62.

If there is NO Partnership Agreement and the firm incurs a loss, the loss should be________________

a)

divided equally

b)

borne by the manager of the firm

c)

borne by the partner with the highest capital

d)

divided in proportion to the capital invested

Accounts CXC Review

Total questions: 62

Worksheet time: 31mins

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