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.
Business entity
Going concern
Consistency
Duality
Correct answer is B
The going concern concept of accounting implies that the business entity will continue its operations in the future and will not liquidate or be forced to discontinue operations due to any reason.
Materiality
Accural
Going concern
Business Entity
Correct answer is A
In accounting, the concept of materiality allows you to violate another accounting principle if the amount is so small that the reader of the financial statements will not be misled. This means that, an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a reader of the financial statements would not be misled.
In the balance sheet of a social club, subscription owing is treated as a
Current liability
Current asset
Tangible asset
Long term liability
Correct answer is B
Outstanding Subscription (subscription owing) It is that amount of Subscription which has been due from Previous year(s) and still remains unpaid. Therefore, It is deducted while ascertaining Subscription received during the Current Year and on the Other hand, it is shown on the Assets side of Opening Balance Sheet.
Which of the following is a not revealed by a firm's accounting records?
Profit of a period
Quality of labour force
Credit worthiness
Value of assets
Correct answer is B
Accounting records include records of assets and liabilities, monetary transactions, ledgers, journals and any supporting documents such as checks and invoices. The firm quality of labour force isnt included in an acounting record.
The total of the returns outwards journal is posted to the
Credit side of the returns outwards book
Debit side of the returns outwards account
Debit side of the purchases returns book
Credit side of the returns outwards account
Correct answer is D
When merchandise (goods) purchased for cash are returned to supplier, we need to record two journal entries. In first entry we debit accounts receivable account and credit purchases returns and allowances account. This entry is made to recognize the return of merchandise. In second entry we debit cash account and credit accounts receivable account. This entry is made when a refund is received from supplier for merchandise returned to him