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.

1,136.

Income and expenditure account is more detailed than receipts and payments account because it disclosed

A.

Cash

B.

Cheques

C.

Debtors

D.

Stocks

Correct answer is C

The income and expenditure account unlike the receipts and payments takes records of accruals and prepayment

 

1,138.

Sai Baba made sales of N10,000 having computed his gross profit % to sales to be 20. His opening stock was N250 and ending stock is N200. Calculate his purchases.

A.

N7950

B.

N8050

C.

N7050

D.

N8950

Correct answer is A

The gross profit percentage of sales would be
20% x N 10,000 = N 2000

If cost of sales + gross profit = N 10,000 = N 2000
:. N 8000 + N 2000 = N 10,000
If cost of goods available for sales less closing stock
= cost of sales
:. N8200 + N200 = N8000

Hence; cost of goods available for sale = opening stock + purchases
:. N8200 = N250 + A
= N 8200 – N 250
=N 7950


 

1,139.

What is the ledger entry for sale of generator on credit to Patrick?

A.

Credit sales account and debit Patrick’s account

B.

Credit generator account and debit cash account

C.

Credit sales account and debit cash account

D.

Credit generator account and debit Patrick’s account

Correct answer is D

Patrick is receiving and should be debited while generator account is giving

1,140.

Preliminary expenses is an example of

A.

Fictitious assets

B.

Liquid assets

C.

Wasting assets

D.

Tangible assets

Correct answer is A

Preliminary expenses are just like other asset but are unrealizable.