Accounting questions and answers

Accounting Questions and Answers

If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.

516.

One of the limitations of accounting is that

A.

It ascertain financial position

B.

It prevent fraud

C.

Transactions are recorded in monetary terms

D.

It monitor the progress of the enterprise

Correct answer is C

In accounting, all transactions are recorded in monetary terms. There is no other terms of recording transactions except monetary terms.

517.

Given:


Fixed assets
Liabilities
Current assets

55,000
20,000
13,000

What is the capital?

A.

₦88,000

B.

₦48,000

C.

₦62,000

D.

₦55,000

Correct answer is B

Capital = Total Assets - Total liabilities
⇒ 55,000 + 13,000 - 20,000
68,000 - 20,000
₦48,000

518.

The objective of departmentalization is to

A.

Ensure that departmental managers are adequately monitored

B.

Record transactions for each department for better documentation

C.

Tackle any recording problem as a result of expansion

D.

Evaluate the profit of different departments

Correct answer is D

The preparation of departmental accounts will show which department is most profitable and may guide in decision making process as to which department must be closed down in some organizations.

 

519.

A company goods sent to branch at invoiced price is ₦30,870 at cost plus 25%. The mark-up is

 

A.

₦20,000

B.

₦6,000

C.

₦6,174

D.

₦10,000

Correct answer is C

No explanation has been provided for this answer.

520.

One of the objective of maintaining the account of a branch at the head office is to

A.

To access the performance of the branches

B.

Check the excesses of customers

C.

Record charges in shareholdings

D.

Record charges in liabilities

Correct answer is A

Branch account enables control to be exercised by management over the affairs of the branch.