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.

202.

The balance on the sales ledger control account at the end of the accounting year represents a total.........

A.

Trade debtors at the end of the year

B.

Cash sales for the year

C.

Credit sales for the year

D.

Amount transferred from the sales journal

Correct answer is A

A sales ledger control account, also called trade debtors control, is the part of your balance sheet that displays how much your customers owe the company.

203.

Use the following information to answer the question that follows

             

                   N
Direct material used-----------------64,000
Direct labour--------------------------30,000
Production overheads--------------22,000
Work-in-progress at beginning-----9,000
Work-in-progress at close---------14,000

The total cost of production is

A.

94,000

B.

106,000

C.

111,000

D.

116,000

Correct answer is D

Total cost of production = Cost of labor + Cost of raw materials + Overhead costs on manufacturing.

64,000 + 30,000 + 22,000 = 116,000

 

204.

Use the following information to answer the question that follows

       N
Direct material used-----------------64,000
Direct labour--------------------------30,000
Production overheads--------------22,000
Work-in-progress at beginning-----9,000
Work-in-progress at close---------14,000

Prime cost of production is?

A.

N64,000

B.

N94,000

C.

N111,000

D.

N116,000

Correct answer is B

Prime cost = Direct materials cost + Direct labor cost

64,000 + 30,000 = 94,000

205.

One of the components of factory overhead is............

A.

Raw materials consumed

B.

Manufacturing wages

C.

Carriage inwards

D.

Depreciation of plant and machinery

Correct answer is D

Costs that support production but are not direct materials or direct labor are considered overhead. It includes;

  • Depreciation of equipment and factory facilities.
  • Rent, property taxes, insurance, and utilities.
  • Employment costs for supervisors, maintenance and quality control staff, and any other on-site employees who aren't physically making signs.