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 describes a trial balance?
It is a special account
It is a list of balances in the books
It reveals the financial position of a business
It shows all the entries in the books of a business
Correct answer is B
A trial balance is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts.
Which of the following errors will affect the agreement of the trial balance?
Error of original entry
Error of commission
Error of transposition
Error of omission
Correct answer is C
A transposition error is a simple error of data entry that occurs when two digits that are either individual or part of a larger sequence of numbers are accidentally reversed (transposed) when posting a transaction.
The financial statement which is an expression of the accounting equation is the
Trading account
Profit and loss account
Balance sheet
Statement of cash flow
Correct answer is C
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
When a fixed asset is disposed off, the accounting entries to write off the asset are Debit
Profit and loss account; credit asset disposal account
Asset disposal account; credit profit and loss account
Asset disposal account, credit asset account
Profit and loss account; credit provision for depreciation account
Correct answer is C
How to record the disposal of assets
Debts that a firm is unable to recover are debited to bad debts account and credited to
Suppliers account
Sales account
Customers account
Cash account
Correct answer is A
The entry to write off a bad debt account affects only balance sheet accounts: a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
Accounts receivable is money owed to a company by its debtors.