natsnamibia.com : NATS National Accounting Talent Search Examination 2014 Sample Question Paper

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Name of the Organization : National Accounting Talent Search Examination
Name Of The Exam : NATS EXAM 2014
Document Type : Sample Question Paper
Year : 2014

Website : http://www.natsnamibia.com/past-question-paper.php
Download Sample Question Papers :
NATS EXAM 2014 : http://www.indianjobtalks.com/upload...tion-paper.pdf
NATS EXAM 2013 : http://www.indianjobtalks.com/upload...SEXAM-2013.pdf

NATS Exam Sample Question Paper :
Time allowed: 3 Hours
Marks: 100
** ALL 40 questions are compulsory and MUST be attempted.
** Do NOT open this paper until instructed by the invigilator

PART A (40 Marks) :
Each multiple choice question is worth 2 marks.
1. Which of the following in the Balance sheet of a business shows the owner how well his business is doing?
(a) Debtors
(b) Drawings
(c) Net profit
(d) Working capital

2. The owner’s capital is regarded as a liability.
What accounting principle is being applied?
(a) Business entity
(b) Consistency
(c) Matching
(d) Realisation

3. Which of the following is correct.
A. Profit does not alter capital
B. Profit reduces capital
C. Capital can only come from profit
D. Profit increases capital

4. Money received from a customer must be recorded in the debtor’s account and the bank account.
What accounting principle is being applied?
(a) Business entity
(b) Duality
(c) Matching
(d) Money measurement

5. The descending order in which current assets should be shown in the balance sheet is
A. Inventory, account receivable, bank, cash
B. Cash, bank, account receivable, inventory
C. account receivable, inventory, bank, cash
D. Inventory, account receivable, cash, bank

6. Given figures showing; Revenue N$8200, opening inventory N$1300, closing inventory N$900, purchases N$6400,carriage inwards N$200, the cost of goods sold figure is
A. N$6800
B. N$6200
C. N$7000
D. Another figure

7. Given a purchases invoice showing five items of N$80 each, less trade discount of 25% and cash discount of 5%, if paid within the credit period, your cheque would be made out for
A. N$285
B. N$280
C. N$260
D. None of these

8. An allowance for doubtful debt is created
A. When debtors become bankrupt
B. When debtors cease to be in business
C. To provide for possible bad debts
D. To write off bad debts

9. A cheque paid by you, but not yet passed through the banking system is
A. A standing order
B. A dishonoured cheque
C. A credit transfer
D. An unpresented cheque

11. The totals of a trial balance are Debit N$46 800 Credit N$39 700
The following errors have been discovered :
1 Rent received, N$3 550, has been included as a debit balance.
2 Cash received from K Greener in settlement of a debt of N$2 000 has been credited to B Greener.
What will the corrected trial balance totals be?
(a) N$38 150
(b) N$41 250
(c) N$43 250
(d) N$45 250

12. What is the purpose of preparing a bank reconciliation statement?
(a) To check that all expenses have been paid
(b) To check on the amount owed by debtors
(c) To explain the difference between the bank statement balance and cash book balance
(d) To see by how much the bank balance has increased

13. In a bakery business, which is a current asset?
A. Motor vehicle
B. Oven
C. Shelving
D. Sock of flour

14. The following information about a business is provided.
Sales N$75 000
Cost of sales N$60 000
Opening stock N$6 000
Closing stock N$9 000
What is the rate of stock turnover?
(a) 4 times
(b) 5 times
(c) 8 times
(d) 10 times

16. Where the cost of sales should be entered in the final accounts of a partnership?
A. Appropriation account
B. Balance sheet
C. Profit and loss account
D. Trading account

17. Which error affects the balancing of a trial balance?
A. An addition error in the sales account
B. Crediting a purchases to B. Shore’s account instead of A. Shaw’s account.
C. Failing to enter a sales invoice in the books.
D. Posting the purchase of machine to the debit side of the purchases account.

18. In a partnership accounts, which item appears in both the Profit and Loss Appropriation Account and in the partners’ current accounts?
(a) Current account balances
(b) Drawings
(c) Interest on drawings
(d) Interest on loans

19. In the manufacturing account we calculated
A. The production costs paid in the year
B. The total cost of goods produced
C. The production cost of goods completed in the period
D. The gross profit on goods sold

20. A trader does not keep proper accounting records. Her capital at the end of the financial year is higher than at the start. She has not introduced any further capital during the year.
What does this show?
(a) A net loss has been made during the year.
(b) Annual drawings are greater than the net profit.
(c) Assets less liabilities have reduced during the year.
(d) Net profit is greater than annual drawings

[Unregistered]

i dont understand the last question