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.

896.

A business organization prepares departmental account in order to

A.

Ascertain the contribution of each department to the organization

B.

Ascertain interdepartmental transfer

C.

Build other branches

D.

Know the number of departments in the organization

Correct answer is A

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

897.

An increase in government expenditure within a year is taken care of by means of

A.

Virement

B.

Financial regulations

C.

Supplementary estimate

D.

Warrant

Correct answer is C

Supplementary estimates means a statement of unforeseen expenditure for a financial year presented by the Treasurer to the Legislative Assembly for the purpose of obtaining supplementary appropriation for that expenditure

 

898.

When the purchase consideration is lower ttan the net asset, the buyer has gained the advantage of

A.

Capital reserve

B.

Revenue reserve

C.

Net income

D.

Net loss

Correct answer is A

Capital Reserve is a type of profit that is earned on capital transactions - an example would be the profit arising from the forfeiture of shares, sales of assets etc

 

899.

Which of the following is accounted for in receipts and payments account?

A.

Accrued expenses on annual dances

B.

Subscriptions due but not yet received

C.

Interest on bank deposit

D.

Depreciation of the club house

Correct answer is C

"A receipt and payment account is a summarized cash book (cash and bank) for a given period"
The bank column would reflect interest on bank deposits