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.
Books of accounts are opened by the use of
Balance sheet
General ledger
General journal
Trial balance
Correct answer is C
Journal is a prime entry into which transactions are entered on a daily basis. The journal is used to correct errors, recording entry transactions etc.
The authority to incur expenditure to address natural disaster is contained in
Contingency warrant
Supplementary general warrant
Reserved expenditure warrant
Virement warrant
Correct answer is A
Contingency warrant gives authority to the accountant general to release fund for urgent and unforeseen events. It is used when virement is not possible and there is an urgent need for the fund, which cannot be postponed.
In the balance sheet of not-for-profit making organizations, subscription in arrears is shown under
Long-term liabilites
Current assets
Current liabilities
Fixed assets
Correct answer is B
Subscription in arrears is the sum of money due from members for a particular year but which has not been paid for that year. It is treated as current asset in the balance sheet.
The maximum amount a company can raise through the issue of shares is
Paid-up capital
Authorized capital
Reserve capital
Loan capital
Correct answer is B
Authorized capital is also known as Nominal or Registered capital. It is the capital set out in the capital clause of the company's memorandum of association.
#15,000
#25,000
#10,000
#75,000
Correct answer is A
Teteh's share of interest on capital = 5% x 300,000 = 15,000