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.

952.

The major advantage of the journal proper is that it

A.

Helps in the preparation of the balance sheet

B.

Prevents fraud and theft of item of the business

C.

Serves as a book of instruction to the bookkeeper

D.

Help the banking industry to be efficient

Correct answer is B

The advantages of using a journal in the recording process is, it discloses in one place the complete effects of a transaction, it provides a chronological record of transactions, & it helps to prevent or locate errors because the debit and credit amounts for each entry can be easily compared.

 

954.

The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?

A.

#184,000

B.

#196,500

C.

#212,000

D.

#168,500

Correct answer is D

The net working capital formula is calculated by subtracting the current liabilities from the current assets. 
Assets = 190,500
liabilities = 14,000 + 8,000 = 22,000
190,500 - 22,000 = 168,000 (capital)