ordinary level 2026 South West mock ohada financial reporting 1

An enterprise that commences activity on 31/07/2019 must prepare its first financial statements on:

A 31/07/2019

B 31/12/2019

C 31/07/2020

D 31/12/2020

Which system of preparing financial statements is suitable for enterprises with annual turnover more than 50,000,000 FCFA?

A Minimum cash system

B Simplified system

C Standard system

D Classical system

The Accounting classes used to prepare the Balance Sheet are:

A Classes 6, 7, and 8

B Classes 1, 2, 3, 4 and 5

C Classes 1 to 8

D Classes 4 to 8

A reduction in the market value of an asset below its book value is known as:

A Amortisation

B Depreciation

C Provision

D Impairment

An annual rent of 240,000 FCFA was paid to cover April 4, 2018 to March 31, 2019. The annual rents to be adjusted on December 31, 2018 will be?

A 60,000 FCFA

B 180,000 FCFA

C 20,000 FCFA

D 240,000 FCFA

On December 20, a company received an invoice for goods worth F CFA 300,000. By December 31, 2018, the goods had not yet arrived. The adjustment entries will be:

A Dr 38 and Cr 6031

B Dr 6031 and Cr 38

C Dr 601 and Cr 408

D Dr 408 and Cr 601

An agricultural machine acquired on January 1, 2018 was depreciated at a constant rate of 20%. The net accounting value on December 31, 2019 is 6,000,000 FCFA. Determine the original value of the machine:

A 30,000,000 FCFA

B 15,000,000 FCFA

C 6,000,000 FCFA

D 10,000,000 FCFA

An entity acquired transport equipment on January 1, 2015 for 5,000,000 FCFA and depreciated it using the sum of year’s digit method for 5 years. The depreciation for 2018 is:

A 1,333,333 FCFA

B 1,000,000 FCFA

C 666,667 FCFA

D 10,000,000 FCFA

If a fixed asset, costing 3,000,000 FCFA, has accumulated depreciation of 2,200,000 FCFA and is sold for 500,000 FCFA, the gain or loss on disposal is;

A 800,000 FCFA gain

B 800,000 FCFA loss

C 300,000 FCFA gain

D 300 FCFA loss

Which accounting principle is applied when an entity decides to create impairment loss for doubtful debts?

A Going concern

B Money measurement

C Materiality

D Prudence

A bank statement shows a balance at bank of 32,000 FCFA. The amount of unpresented cheques is 12,000 FCFA and the amount of uncredited deposits is 7,000 FCFA. What is the debit balance in the bank account kept by the entity?

A 13,000 FCFA

B 27,000 FCFA

C 37,000 FCFA

D 51,000 FCFA

What is the accounting concept that states that “do not anticipate profit and provide for all probable losses”?

A Accrual concept

B Matching concept

C Prudence concept

D Realisation concept

A company paid a one year insurance policy on a vehicle from April 1, 2018 to March 31, 2019 for 1,800,000 FCFA. The amount of prepaid expense is:

A 150,000 FCFA

B 1,350,000 FCFA

C 1,500,000 FCFA

D 450,000 FCFA