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.

694.

Subscription in advance is treated in the balance sheet as a

A.

Current asset

B.

Current liability

C.

Fixed asset

D.

Long term liability

Correct answer is B

Current assets are assets of the company that can be easily converted to cash when needed

current liability: this is the liability owned to outsiders but still enjoying its benefit within a year e.g creditors, wages in arrears

695.

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