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.

211.

Use the information below to answer the question that follows

Sales--------------- 120,000
Purchase-----------100,000
Opening stock-----10,000
Closing stock------20,000

The cost of goods sold is.........

A.

Le 120,000

B.

Le 110,000

C.

Le 90,000

D.

Le 30,000

Correct answer is C

Cost of goods sold = opening stock + purchase - closing stock

10,000 + 100,000 - 20,000 = 90,000

212.

The wages of an office cleaner is classified as

A.

Direct labour cost

B.

Direct expenses

C.

Factory overhead

D.

Administrative overhead

Correct answer is D

Administrative overhead is those costs not involved in the development or production of goods or services. Administrative overhead is those costs not involved in the development or production of goods or services.

213.

Cost of goods sold is calculated as...................

A.

Opening stock+ purchase - closing

B.

Opening stock + sales - closing stock

C.

Opening stock + purchase + closing stock

D.

Opening stock + sales + closing stock

Correct answer is A

Starting inventory + purchases − ending inventory = cost of goods sold

214.

The concept which states that revenue is recognized when goods are sold is

A.

Realization concept

B.

Going concern concept

C.

Matching concept

D.

Periodically concept

Correct answer is A

The realization concept states that revenue can only be recognized once the available goods or services associated with the revenue have been delivered or sold.

 

215.

The consistency concept aims at

A.

Ensuring that all expenses are matched against revenue

B.

Reducing cost

C.

Comparability of accounting records

D.

Suppressing profits to be declared

Correct answer is C

The concept of consistency means that accounting methods once adopted must be applied consistently in the future, and same methods and techniques must be used for similar situations