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.

726.

Which of these is the subsidiary book for return inwards?

A.

Sales day book

B.

Sales return journal

C.

Purchases day journal

D.

Cash book

Correct answer is B

Sales return journal otherwise called return inward book is meant for recording of all good returned by customer

727.

In the period of rising prices, which method of stock valuation is most appropriate?

A.

Last in First Out

B.

Weighted average

C.

First in First Out

D.

Simple average

Correct answer is A

Last in first out:when price rise it results to lower bet income because the leftover inventory might be extremely old and perhaps obsolete

728.

Which fund is used to meet unforeseen or urgent expenditure?

A.

General reserve fund

B.

Consolidated Reserve Fund

C.

Contingencies fund

D.

Special fund

Correct answer is C

Contingencies fund: if there is an urgent and unforeseen need for expenditure for which no other provision exist, such expenses shall be deducted from the contingencies fund

729.

A.

₦110,000

B.

₦80,000

C.

₦90,000

D.

₦30,000

Correct answer is D

\(\begin{array}{c|c} \text{Assets} & N \\ \hline \text{Plant and Machinery} & 190 000 \\ \hline \text{Motor Vehicle} & 170 000 \\ \hline \text{Stock} & 60 000 \\ \hline & 420,000 \\ \hline \text{Less Liabilities} & 50 000 \\ \hline \text{Value / Net worth of the business} & 370,000\end{array}\)

Purchase Consideration less worth of the business
400,000 - N 370,000

= N30,000

Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.


Sub-categories

JAMB