gce 2022 intermediate level international financial accounting 1
gce 2022 intermediate level international financial accounting 1
Which of the options below is true about real
accounts ?
A Real accounts records expenses
B Real accounts record Income
C Real accounts record cutomers and
supliers
D Real accounts records equipment and
buildings
8. A successful partnership business operating for
lOyears with initial shares of 1,000,000 FCFA is
opened to new partners for 2,000,000 FCFA.
Why do the partners value the shares high?
A They do not want another partner
B They expect new Partners to buy shares
expensive
C They desperately need additional Capital
D They expect new partners to pay for
Goodwill
2. It is an accounting document used in preparingthe
Income statement
A Trial Balance
B Journal
C Ledtier
D Invoice
9. The opening and closing cash balances for a nonprofit making organisation arc shown in the
A statement of affairs
B receipt and payment account
C income and expenditure account
D non-profit cash book
3. On March 1, 2020, Titus paid rents of 420,000
FCFA for 7months. How much will be charged in
the profit and loss accounts for the year 2020?
A 720.000 FCFA
B 600
,000 FCFA
C 420,000 FCFA
D 180,000 FCFA
10. An expense consumed during a current period but
paid in the next period is known as
A prepaid Expense
B overhead Expense
C expenses in advance
4. Businesses are expected to choose an accounting D accrued Expenses
method which they will use over a period of time.
Which accounting concept explains this?
A Prudence concept
B Going concern concept
C Consistency concept
D Accruals concept
11. Which of the following is a profitability ratio?
A Working capital
B Return on capital employed
C Acid test ratio
D Current ratio
5. An enterprise has a cash float of 840,000 FCFA
per month. Given that by the end of July 654,000
FCFA has been used, what amount of imprest
should be given in for the next month ?
A 186,000 FCFA
B 840,000 FCFA
C 1,494,000 FCFA
D 654,000 FCFA
12. CONS Ltd rented out part of its office building on
the Is’ of July 2019 for 1,080,000 FCFA for a ~
period of 15months. Flow much rents should
appear in the Income statement of CONS ltd at
the end of the year 2019?
A 432,000 FCFA Income
B 648,000 FCFA Expense
C 432,000 FCFA Expense
D 648,000 FCFA Income
6. When the totals of the debit and credit sides of an
account are equal, the balance is a
A debit balance
B nil balance
C credit balance
D wrong balance
13. The aim of end of year work is to produce the
A Trial balance
B Journal
C Financial statement
D Ledger accounts
7. The opening and closing capital of a business for
a period is 420,000 FCFA and 735,000 FCFA.
The owner brought in an additional 120,000
FCFA cash and made drawings of 82,000 FCFA.
Determine the profit made by the business.
A 615,000 FCFA
B 315,000 FCFA
C 277,000 FCFA
D 232,000 FCFA
14. Errors in the trial balance are corrected using the
A journal
B accounts affected
final account
D suspense account
