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.
Which of the following items is found in the sales ledger control account?
Discount received
Total credit purchases
Discount allowed
Returns outwards
Correct answer is C
A discount allowed is when the seller of goods or services grants a payment discount to a buyer. Discount allowed has to do with purchases
The process of using sales ledger balance to cancel off purchases ledger balance is
Balancing
Set off
Reconciliation
Cancelling
Correct answer is B
A set-off clause is a legal clause that gives a lender the authority to seize a debtor's deposits when they default on a loan. A set-off clause can also refer to a settlement of mutual debt between a creditor and a debtor through offsetting transaction claims.
Current liability
Expenses
Income
Current asset
Correct answer is C
The effects of provision for doubtful debts in financial statements may be summed up as follows:
(1) Income Statement: Only change (increase or decrease) in provision for doubtful is shown in the income statement. When there is an increase, then its considered an expense which will be (deducted from profit) and when it decreases, then it is an income and will be (added in profits).
Which of the following is not a method of depreciating fixed assets?
Revaluation
Straight Line
Diminishing balance
Obsolescence
Correct answer is D
Depreciation methods
The cost of putting goods into a saleable condition is charged to
Balance sheet
Trial balance
Profit and loss account
Trading account
Correct answer is C
Profit and loss account is an account in the books of an organization to which incomes and gains are credited and expenses and losses debited, so as to show the net profit or loss over a given period. It includes the cost of materials both direct and indirect that were used up in the production process to convert the product into a saleable and consumable goods.