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.

946.

The ratio that gives the indication of the efficiency of a firm's sales with respect to cost of goods sold is a

A.

Return on capital employed

B.

Gross profit margin

C.

Net profit margin

D.

Return on equity

Correct answer is A

Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed.

 

948.

One of the objectives of accounting is that it can be used for

A.

Business decision making

B.

Due process in business

C.

Motivating employees

D.

Determining the work force

Correct answer is A

Objectives of accounting in any business are; systematically record transactions, sort and analyzing them, prepare financial statements, assessing the financial position, and aid in decision making with financial data and information about the business.

 

950.

Departments K Y
Opening 2,500 800
Purchases 120,000 100,000
Sales 180,000 200,000
Salary 8,000 30,000
Closing stock 3,000 1,500
Rate expenses of 1,500 are apportioned in the ratio 1:2

The gross profit for K is

A.

N60,700

B.

N23,500

C.

N60,500

D.

N82,500

Correct answer is C

Sales - Cost of Goods Sold = Gross Profit

COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.

COGS = 2,500, +  120,000 - 3,000 = 119,500

gross profit for K = 180,000 - 119,500 = 60,500