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.

716.

Given:

I. It records subscription in arrears 
II. Payments of liabilities is effected 
III. The account does not show if cash payment is revenue or capital expenditure 
IV. It performs the same function as cashbook 
The features of receipts and payment account includes

A.

I, II and IV

B.

II, III and IV

C.

III and IV

D.

I, II and III

Correct answer is B


The receipts and payment account is one of the account of a non-profit oriented organization that performs the same functions as cash account in a profit oriented organization all forms of payment since cash is involved will be recorded and also performs the same functions as the cashbook does for profit oriented organization

717.

Which of these is the main source document for recording cash paid into bank?

A.

Invoice

B.

Cheque book

C.

Credit note

D.

Pay-in-slip

Correct answer is D

Pay-in-slip:this is in form of a slip designed with the name of the bank on top that has dates amounts in figure and word, column for the denomination of money paid in signature bank teller, stamp to prove the money is deposited into the bank

718.

When starting with the cash book balance in preparing the bank reconciliation statement, the followings are added

A.

Unpresented cheque

B.

Dividend

C.

Uncredited cheque

D.

credit transfer

Correct answer is C

Uncredited cheque have to be less when starting with balance as per cashbook not add because the cheque are yet to be credited by the bank

 

719.

Salaries in arrears 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 Liability: salaries in arrears fall into the category of them under the current liability because it is benefit due to outsiders but still enjoying by the organisation and can't exceed a year

720.

One of the options below is not the source of income for non- profit organization

A.

Entrance fees

B.

Subscription/dues

C.

Ordinary shares

D.

Donations

Correct answer is C

Ordinary shares: This type of source of income is only used in profit oriented organization to generate fund the pubic so as to enable the organization make more profit at the end of a specified period