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.
In a manufacturing account, royalties paid
Debited to the trading account
Credited to the profit and loss account
Credited to the manufacturing account
Debited to the manufacturing account
Correct answer is D
Royalty paid on the basis of output (manufacturing) is debited to the Trading or Manufacturing Account as it is considered a normal business expenditure.
A credit entry is made in the plant and machinery account for the ......................
Purchase of an additional plant and machinery
Sale of plant and machinery
Maintenance of plant and machinery
Appreciation of plant and machinery
Correct answer is B
No explanation has been provided for this answer.
A fall in the value of a fixed asset due to technological changes is described as?
Superfluity
Wear and tear
Obsolescence
Depletion
Correct answer is C
Obsolescence is a process by which a machine, or in this case, a fixed asset becomes outdated, no longer used or losses value as a result of changes in the level of technology
The amount set aside out of profits to strengthen the financial position of the business is
Position
Reserve
Depreciation
Surplus
Correct answer is B
A reserve is profits that have been appropriated for a particular purpose. Reserves are sometimes set up to purchase fixed assets, pay an expected legal settlement, pay bonuses, pay off debt, pay for repairs and maintenance, and so forth.
Le 30,000 profit
Le 20,000 profit
Le 10,000 loss
Le 30,000 loss
Correct answer is A
Opening stock------------- 10,000 Sales --------- 120,000
Purchase------------------- 100,000
110,000
Less: Closing stock-----------20,000
Cost of goods sold------- 90,000 90,000
Gross profit 30,000