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.
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.
Shares are said to be authorized when they are
Paid-up
Called up
Offered for sale
Subscribed
Correct answer is C
Authorized shares are defined as the maximum number of shares that a company is legally allowed to issue to investors as per its own determinations
Salaries in arrears is treated in the balance sheet as a
Current asset
Current liability
Long term liability
Fixed asset
Correct answer is B
Salaries in arreas is an unpaid salary with amount due from the past. It is treated as current liabilities in the balance sheet.
Which of the following is found on the credit side of a profit and loss account?
Advertising
Dividend received
Wages and salaries
Bank charges
Correct answer is B
Dividend received as as revenue i.e income or money received in trading transactions. It is credited to the profit or loss account.
Current assets are shown in the balance sheet in order of performance as
debtors, stock, bank and cash
stock, debtors, bank and cash
stock, bank, debtors and cash
debtors, stock, cash and bank
Correct answer is B
The current assets are usually listed on the balance sheet in the following order:
- inventory (stock)
- account receivables e.g debtors
- marketables securities
- cash and cash equivalent