Closing stock is normally valued at

the lower of cost and net realisable value

Bank charges appearing on the statement but not in the cash book should be:

reported as an error to the bank

Authorised share capital is the:

maximum capital a company may raise by shares

amount actually paid by shareholders

deducted before the invoice total is recorded

recorded in the discount account

The reducing balance method charges depreciation on the:

net book value at the start of each year

A control account is prepared mainly to

check the accuracy of a ledger's entries

National Examinations Council

NECO Financial Accounting · Papers III & II — Objective, Theory & Practice

One sitting, one clock, covering both the objective and the essay paper. The CBT simulator practises the objective half.

40 exam-style questions, written to the National Examinations Council format and free to read. The answers are here too — what they do not tell you is how many you would get right with a clock running.

Sit this paper timed All NECO Financial Accounting papers

1. Closing stock is normally valued at

2. Bank charges appearing on the statement but not in the cash book should be:

3. An increase in an asset account is recorded as a

4. Authorised share capital is the:

5. A credit balance on the purchases ledger control account represents:

6. A statement of affairs is used mainly to determine

7. Returns inwards are deducted from

8. Trade discount is

9. Which account normally has a credit balance?

10. Discount allowed to a customer for prompt payment is recorded as

11. The receipt of cash from a debtor is recorded as:

12. The reducing balance method charges depreciation on the:

13. Under the FIFO method of stock valuation, goods issued are assumed to be

14. A partner's share of profit is credited to their

15. The convention that losses should be anticipated but profits recognised only when realised is

16. A business had a gross profit of ₦480 000 and total expenses of ₦190 000. Its net profit is

17. The petty cash book operated on the imprest system is restored at the end of each period to:

18. The assumption that a business will continue to operate for the foreseeable future is the:

19. The current ratio measures a business:

20. A control account is prepared mainly to

21. The equivalent of a profit and loss account for a club is the

22. Government accounting in Nigeria is based mainly on

23. An increase in an asset account is recorded as a

24. Drawings by the owner are:

25. The ledger containing the personal accounts of customers is the

26. The concept requiring revenue and the expenses incurred in earning it to be recorded in the same period is the

27. A vehicle costing ₦1 200 000 is depreciated at 25% per annum on the reducing balance. The charge for the second year is

28. The suspense account is opened when:

29. Carriage inwards is charged to the:

30. Net profit is transferred at the year end to the:

31. Treating the owner and the business as separate for accounting purposes is the

32. The provision for depreciation account is shown in the balance sheet as a

33. Gross profit is calculated as

34. An error of commission occurs when a transaction is posted to:

35. The concept that assumes a business will continue to operate for the foreseeable future is the

36. Where a trader keeps no double entry records, profit may be found by

37. The accounting equation is

38. The convention that similar items should be treated the same way from year to year is:

39. Carriage inwards is charged to the

40. A document sent by a seller to correct an undercharge on an invoice is a

Reading these is not the same as sitting them.