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.

1,161.

Calculate the total purchase of a business from the given information, cash purchases 3000; payments to creditors 53,000; creditors at the beginning 4000; creditors at the end 2,000

A.

N52,000

B.

N51,000

C.

N55,000

D.

N50,000

Correct answer is C

Total purchases = credit purchases plus cash purchases i.e. N52000 + N3000 = N55,000

 

1,162.

When shares are sold at more than the par value, they are said to have been issued at

A.

A premium

B.

Normal value

C.

A discount

D.

A profit

Correct answer is B

Par value  (also known as par, nominal value or face value) is the face value of a bond. Par value for a share refers to the stock value stated in the corporate charter. 

1,163.

Which of the following accounts is debited when a delivery van is sold for cash?

A.

Sales account

B.

Delivery van account

C.

Cash account

D.

Profit and loss accounts

Correct answer is C

if there was a Loss on sale, we Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
if there was a Gain on sale. Debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account.

Cash is received and expected to be debited going by the principles of double entry.

1,164.

Which of the following is true in public sector accounting? Cost of assets is

A.

Depreciated on straight line method

B.

Expensed in the year of purchase

C.

Charged to federation account

D.

Depreciated on reducing balance method

Correct answer is B

In government account, assets are written off in their year of purchase.

1,165.

Keeping records under single entry system has the advantage of

A.

Quality in terms of records

B.

Simplicity in terms of operation

C.

Accuracy in terms of operation

D.

Completeness in terms of records

Correct answer is B

Advantages Of Single Entry System. Single entry system does not need any special accounting knowledge and personnel to record financial transaction of the business. It can be maintained easily by the business owner. So, this system of book-keeping is simple to maintain and easy to practice.