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.

636.

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

A.

Bonus

B.

Goodwill

C.

Premium

D.

Commission

Correct answer is B

Goodwill is the excess of the purchase consideration over the total value of an entity

 

637.

Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

A.

Partners salaries

B.

Interest on capital

C.

Interest on loans

D.

Partners drawings

Correct answer is C

Is charged in the profit and loss account as finance expenses

638.

In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________

A.

Debit entry

B.

Contra entry

C.

Credit entry

D.

Reversal entry

Correct answer is A

A contra entry is an entry which is recorded to reverse or offset an entry on the other side of an account

  When cash is remitted from the branch

  Dr Bank account

  Cr Branch account

  Or

  Dr Remittance from bank

  Cr Remittance from branch


 

639.

Which of the following is not a type of branch?

A.

Dependent branch

B.

Foreign branch

C.

Independent branch

D.

Single branch

Correct answer is D

No explanation has been provided for this answer.

640.

Why are adjustments in the profit and loss account necessary?

A.

To cover some expenses of the following year

B.

To show the provisions made during the year

C.

To show the total expenses paid and income received during the year

D.

To ascertain the actual expenses incurred and income earned during the year

Correct answer is D

Fundamental principle of preparing P&L account is that expenses and income relating to only the trading period are taken to the trading profit and loss account.