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.
Accounting information is used by investors and creditors of a company to predict
Potential merger candidates for the company
Appropriate remunerations for the company’s staff
Future cash flows of the company
Future tax payments of the company
Correct answer is C
The average lender or investor does not have ongoing inside access to the day-to-day operations of a company. Instead, it relies on financial accounting to provide accurate and readily comparable information. Financial accounting allows outside actors to observe the profitability and value of a business.
Creditors are interested in accounting information, because it enables them to determine the credit worthiness of the business.
If sales return is understated, it implies that ------------------------------ is overstated
Return inward
Sales figure
Cost of sales
Return outward
Correct answer is B
This is so because returns inwards are deducted from sales to ascertain the actual sales made after subtracting defected goods
Use the following information to answer this question.
N11,700
N26,700
N88,000
N85,000
Correct answer is C
Creditors plus subscription in advance 85000 + 3000 = 88,000
If a trail balance is in agreement, one of the statement is untrue
The accounting system is error free
Equal debit entries and credit entries were recorded for each transaction
The debit and credit from the journal were posted to the accounts
Account balances were correctly computed
Correct answer is A
Agreement of trial balance does mean it is error free. Some errors might not be disclosed by mere agreement
Which of the following cannot be realized?
Creditors
Debtors
Motor vehicles
Goodwill
Correct answer is D
Good will being an intangible asset cannot be seen or touched and are just believed to exist goodwill can only be valued to be a certain amount, the realizable value becomes a difficult task.