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.

591.

When a bill is negotiated to a bank, it is said to be?

A.

Accepted

B.

Discounted

C.

Surrendered

D.

Cashed

Correct answer is B

A bill discounting involves effectively selling a bill to a bank for an amount that is slightly less than the par value and before the maturity date associated with the bill of exchange.

592.

The current growth in the volume of trading and financial dealings in nigerian is helped by?

A.

Credit as a factor in business

B.

Payments for goods in cash

C.

Increased financial activities

D.

Government intervention

Correct answer is C

Financing activities are transactions or business events that affect long-term liabilities and equity. In other words, financing activities are transactions with creditors or investors used to fund either company operations or expansions. These transactions are the third set of cash activities displayed on the statement of cash flows.

593.

A cash book had a opening balance of N15,200, closing balance of N18,400 and total cash received during the period of N36,000. What was the amount of cash paid out during the same period?

A.

N29,200

B.

N17,800

C.

N32,800

D.

N19,600

Correct answer is C

opening balance= N15,200

cash receipt = N36,000

closing balance= N18,400

N15,200 + N36,000 = N51,200

N51,200 - N18,400 = N32,800 (cash paid out)

 

594.

Subscription received during the year N30,000. Subscription owed last year  N4,000. subscription received for next year N6,000. 

use the details above to answer the following question.

What is the subscription to be charged to income and expenditure account?

A.

N20,000

B.

N30,000

C.

N34,000

D.

N36,000

Correct answer is D

An income and expenditure account is a record showing debits and credits for an organization within a particular time period. Income and expenditure accounts are also referred to as profit and loss accounts. Generally, these accounts are credited with debits and credits, whether paid or not. 

the subscription to be charged to income and expenditure account = subscription for the year N30,000 + N6,000 subscrition for next year. ie, N36,000

595.

Subscription received during the year N30,000. Subscription owed last year  N4,000. subscription received for next year N6,000. 

use the details above to answer the following question.

The N6,000 subscription received is?

A.

Capital

B.

Fixed asset

C.

Current liability

D.

Current asset

Correct answer is C

subscription is a relatively new business model by which a customer agrees to pay the company for products or services throughout a specified time-period. For example, the customer may agree to purchase a one-year subscription to a magazine which he receives on a regular basis (monthly, weekly, etc.).

Current liabilities are a company's debts or obligations that are due within one year or within a normal operating cycle. While current asset refers to cash and other assets that are expected to be converted to cash within a year. In this case, the company is owing a subscriber for a good or service that has already been paid for (by the subscriber), but not yet delivered by the company. on the part of the company's, it will be considered a liability due within a year  and on the subscriber' part, an asset due within a year.