NECO Financial Accounting 2017 Questions & Answers (Theory-Obj) Out

NECO 2017 Financial Accounting Questions Released – See Objective and Theory Practice Answers Here.

The National Examination Council, NECO, Senior School Certificate Examination, SSCE, Financial Accounting paper will be written today, Monday 24th July.

neco financial accounting 2017

The 2017 NECO financial accounting exam will comprise of Papers III & II: Objective & Theory / Practice which will commence from 10.00am and end by 1.50pm. This means the examination will last for three hours fifty minutes (3hrs 50mins) only.

Below, we will be posting out samples of the neco financial accounting questions for candidates that will participate in the examination for practice purposes.

Neco Financial Accounting Theory Practice Sample Questions:

1) Keswick Co acquired 80% of the share capital of Derwent Co on 1 June 2015. The summarised draft statements of
profit or loss for Keswick Co and Derwent Co for the year ended 31 May 2016 are shown below:

Keswick Co –   Derwent Co
                                        $000             –    $000
Revenue                          8,400              –    3,200
Cost of sales                   (4,600)           –    (1,700)
–––––                –––––
Gross profit                    3,800              –   1,500
Operating expenses     (2,200)            –    (960)
–––––                 –––––
Profit before tax          1,600                –    540
Tax                                (600)                 –    (140)
–––––            ––––––
Profit for the year       1,000              –      400
–––––– ––––––
During the year Keswick Co sold goods costing $1,000,000 to Derwent Co for $1,500,000. At 31 May 20X6, 30%
of these goods remained in Derwent Co’s inventory.

(a) Prepare the Keswick group consolidated statement of profit or loss for the year ended 31 May 2016.

Note: The statement should stop once the consolidated profit for the year has been determined. The amounts
attributable to the non-controlling interest and equity owners of Keswick are not required. Show all workings
as credit will be awarded to these as appropriate.

(b) Which of the following formulas describes the amount to be entered in the consolidated statement of profit
or loss as ‘Profit attributable to: Equity owners of Keswick Co’?

A Group profit after tax – non-controlling interest
B Group profit after tax + non-controlling interest
C Keswick Co’s profit after tax
D Group profit after tax.

(c) What amount should be shown in the consolidated statement of profit or loss for the non-controlling interest?

Neco Financial Accounting Objective Questions:

neco 2017 financial accounting-questions answers

4. Which of the following explains the imprest system of operating petty cash?
A. Weekly expenditure cannot exceed a set amount
B. The exact amount of expenditure is reimbursed at intervals to maintain a fixed float
C. All expenditure out of the petty cash must be properly authorised
D. Regular equal amounts of cash are transferred into petty cash at intervals
E. Expenditure is constant.

5. Which TWO of the following errors would cause the total of the debit column and the total of the credit column
of a trial balance not to agree?

(1) A transposition error was made when entering a sales invoice into the sales day book
(2) A cheque received from a customer was credited to cash and correctly recognised in receivables
(3) A purchase of non-current assets was omitted from the accounting records
(4) Rent received was included in the trial balance as a debit balance

A. 1 and 2
B. 1 and 3
C. 2 and 3
D. 2 and 4
E. 1 and 4.

6. Peter has not kept accurate accounting records during the financial year. He had opening inventory of N6,700 and purchased goods costing N84,000 during the year. At the year end he had N5,400 left in inventory. All sales are
made at a mark up on cost of 20%.
What is Peter’s gross profit for the year?
A. N13,750
B. N17,060
C. N16,540
D. N20,675
E. N24,000.

7. Shasia Co extracted the trial balance for the year ended 31 December 2017. The total of the debits exceeded the
credits by N300.
Which of the following could explain the imbalance?
A. Sales of N300 were omitted from the sales day book
B. Returns inward of N150 were extracted to the debit column of the trial balance
C. Discounts received of N150 were extracted to the debit column of the trial balance
D. The bank ledger account did not agree with the bank statement by a debit of N300.

Note: There is nothing like Neco financial accounting expo online. SSCE candidates are to desist from patronizing online fraudsters / vendors who says they can provide such services as they are not real.

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