41. The means of reducing or eliminating variations in accounting practice, in order to introduce a
degree of uniformity into financial reporting, is
A. Accounting standards.
B. Accounting concepts.
C. Accounting manuals.
D. Accounting statements.
42. In a business enterprise that has not kept proper books of accounts, what does an increase in
capital at the end of the year over capital at the beginning of the year represent?
A. Increase in capital.
B. Decrease in capital.
C. Underutilization of resources.
D. Improved operating performance.
43 In relation to cost accounting, which of the following is CORRECT?
A. Information is mainly produced for external use.
B. The purpose of information is to record financial performance.
C. Time period is historical and futuristic.
D. It is regulated by legal requirements.
44 A supervisor’s salary of N200,000 per month in a factory in Akwa Ibom is an example of a
A. Mixed cost.
B. Step cost.
C. Variable cost.
D. Fixed cost.
45. When the marginal revenue equals the marginal cost, then the
A. Profit is minimized.
B. Profit is equal to zero.
C. Profit is maximized.
D. Loss is minimized.
46. The following are different branches of accounting, EXCEPT
A. Cost accounting.
B. Management accounting.
C. Financial Accounting.
D. Cash Accounting.
47. Which of the following is NOT part of auditors’ duties during stocktaking?
A. Carrying out test count and recording his sample for subsequent check against sheets.
B. Carrying out cut-off tests.
C. Taking note of special items like damaged stocks, obsolete stocks and slow-moving items.
D. Obtaining photocopies of sheets or extract items from rough stock sheets for comparison
with the final stock records.
48 What should an auditor do when he/she discovers a material misstatement? He/She should
A. Disregard the material misstatement.
B. Correct the error before he writes the final audit report.
C Issue an unqualified report.
D. Communicate the misstatement to the appropriate level of management on timely basis and
consider the need to report it to those charged with governance.
49. The following are the objectives of taxation, EXCEPT
A. To provide fiscal tool for stimulating economic growth and development.
B. To promote healthy competition among different tiers of government.
C. For revenue generation to meet the needs of government.
D. To redistribute income wealth in order to reduce inequality.
50. A quorum is formed at any meeting of the State Internal Revenue Board where there is in
A. The Chairman and three other members.
B. The Chairman or a Director and two other members.
C. The Chairman or a Director and four other members.
D. The Chairman and seven other members.