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.

176.

A unit of a company capital is

A.

Debenture

B.

Stock

C.

Premium

D.

Share

Correct answer is D

Share can be defined as a unit of capital of a company allocated to an individual. It is the interest of the shareholder in the company mesured by in terms of money for purpose of liability in the first place and of interest in the second.

177.

A trader bought goods worth #16,000 and sold three-quarter of it for #20,000

The margin would be

A.

1/2

B.

1/5

C.

2/5

D.

2/3

Correct answer is B

Margin = Profit/Selling Price x 100

= 4,000/20,000 x 100

= 20%

= 20/100

= 1/5

178.

A trader bought goods worth #16,000 and sold three-quarter of it for #20,000

The gross profit is

A.

#4,000

B.

#8,000

C.

#12,000

D.

#6,000

Correct answer is A

No explanation has been provided for this answer.

179.

The user of accounting information who is responsible for overall performance of the business is the

A.

Customer

B.

Employee

C.

Shareholder

D.

Director

Correct answer is D

Directors are agents to the company. They are expected to manage the business on behave of their principal, the shareholders. As a result, they are accountable to them. To achieve accountability, the directors ensure that the business earns a profit.

 

180.

One of the items on the credit column of a trial balance is

A.

Returns outwards

B.

Carriage outwards

C.

Returns inwards

D.

Carriage inwards

Correct answer is A


The rule of a trial balance is :
- debit all expenses and assets
- credit all income and gain and liabilities

Returns outwards is the total value of goods returned to suppliers out of the goods bought and it is also known as purchases returns. Therefore, returns outwards will be credited to the trial balance.