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.

891.

Use the information below to answer the question that follows,

A machine bought for N35,000 was estimated to have a life span of 5years with a scrap value of N9,000.

If the scrap value is now N15,000. What will be the yearly depreciation using the straight line method?

A.

N11,000

B.

N7,000

C.

N4,000

D.

N24,000

Correct answer is C

No explanation has been provided for this answer.

892.

Alaka who owed Saka N15,000, settled his debt after deducting cash discount of 10%. To record the discount in the book of Saka, debit

A.

Saka's account and credit discount received account

B.

Alaka's account and credit discount received account

C.

Discount received account and credit Alaka's account

D.

Discount allowed account and credit Alaka's account

Correct answer is A

Alaka is a debtor to saka we therefore
debit saka's cash account and credit allowed account

893.

The difference between book keeping and accounting is that while

A.

Book keeping interprets data, accounting records it

B.

Book keeping is regarded as the language of the business accounting ascertians its strength and weakness

C.

Book keeping records data accounting interprets it

D.

Book keeping summaries information accounting communicates it

Correct answer is C

In the simplest of terms, bookkeeping is responsible for the recording of financial transactions whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data. 

 

894.

Which of the following expenses relate to the profit and loss account of a manufacturing firm?

 

A.

Administrative overhead

B.

Direct labour

C.

Direct materials

D.

Work-in-progress

Correct answer is A

Administrative overhead is those costs not involved in the development or production of goods or services. This is essentially all overhead that is not included in manufacturing overhead. Examples of administrative overhead costs are the costs of: Front office and sales salaries, wages, and commissions. Office supplies.

 

895.

The objective of departmental account is to

A.

Ascertain the amount of profits or losses for the enterprise

B.

Ascertain the amount of profits or losses for each department

C.

Ascertain the cost of running the organization

D.

Offset the loss of each department

Correct answer is B

The main objectives of departmental accountingare: To check out an interdepartmental performance. To evaluate the performance of the department with the previous period result. The gross profit of eachdepartment can be ascertained.