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.

867.

Partly manufactured goods are treated in the balance sheet of a manufacturing company as

A.

Current assets

B.

Fixed assets

C.

Current liabilities

D.

Long term liabilities

Correct answer is A

Inventory means those current assets, which have been or will be converted into the final products of a company for sale in the near future. In other words, inventory represents finished goods or goods in different stages of production that a company keeps at its premises or at third-party locations with ownership interest retained until goods are sold. The three most important types of inventory are the raw materials, the work in progress (semi finished goods / partly manufactured goods)  and the finished goods.

 

868.

Which of the following expenses constitutes prime cost?                    I. Direct labour cost 
II. Factory overheads 
III. Hiring of machine for production 
IV. Warehouse rent

A.

I and II only

B.

I and III only

C.

I, II and III only

D.

I,II and IV only

Correct answer is B

Prime costs consist of direct materials and direct labor. Direct materials include all tangible components of a product. For example, direct materials include raw materials, supplies, and any other component that becomes part of the finished product.