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.

651.

The correct expression of accounting equation is

A.

Assets = Liabilities + Equity

B.

Net assets = Liabilities + Equity

C.

Assets + Liabilities = Equity

D.

Assets = Equity - liabilities

Correct answer is A

The fundamental accounting equation is Asset = Capital + Liabilities 
Asset = Liabilities + Equity the total assets of the company is generated through liabilities to outsiders that the company is still enjoying in addition with the equity by the owners of the business

652.

The principle of double entry developed from the axioms of accounting equation is given as

A.

Assets + Liability = Equity

B.

Assets + Equity = Liabilities

C.

Liabilities + Equity = Asset

D.

Liabilities + Equity = Net assets

Correct answer is C

Liabilities + Equity = Asset is given as the fundamental equation

653.

What is the effect of transaction when cash is paid into the bank?

A.

Bank balance decrease and cash balance increase

B.

Bank balance decrease and cash balance decrease

C.

Cash balance increase and bank balance increase

D.

Cash balance decrease and bank balance increase

Correct answer is D

Cash balance decrease and bank balance increase: The cash as leaving the cash till and will be deposited into the bank

 

654.

The tier of government that uses financial memorandum

A.

Federal government

B.

State government

C.

Local government

D.

Municipal government

Correct answer is C

No explanation has been provided for this answer.

655.

Which of the following is used to service all operations of government?

A.

Consolidated Revenue Fund

B.

Consolidated Reserve Fund

C.

Special Operational Fund

D.

General-Reserve Fund

Correct answer is A

Consolidation revenue fund generate its revenue through allocation from the federation account, court fees and fines etc and is used to finance government operation e g cost, overhead