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 is charged to trading account?
Rent
Discount allowed
Carriage inwards
Carriage outwards
Correct answer is C
Carriage inwards is the cost of transportation charged on goods purchased. It must be added to the goods purchased, hence it is debited to trading account.
The short term solvency of a company is determined with ------- ratio
Acid test
Gross profit margin
Debt to equity
Current
Correct answer is D
The current or working capital ratio is a test of a business's short-term solvency — its capability to pay its liabilities that come due in the near future (up to one year).
matching
business entity
going concern
historical cost
Correct answer is C
The going concern concept states that a business will continue to operate for an indefinte period of time or perpectual existence.
Non profit account
Profit and loss account
Income and expenditure account
Receipts and payment account
Correct answer is C
The income and expenditure account shows the summary of revenue and running costs of a non-profit making organization. It follows the same principles as the profit and loss account of a trading concern.
Capital for a profit making organization is generated through
Gift
Donation
Shares
Subscription
Correct answer is C
Shares can be issued to the public for subscription. A lot of money can be raised to finance the operation of the business through the issue of new shares to members of the public.