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.
Going concern concept
Accrual concept
Business entity concept
Periodicity concept
Correct answer is A
The going concern concept is an accounting term that states that a business entity will continue running its operations in the foreseeable future and will not be liquidated or forced to discontinue operations for any reason.
Which of the following activities will increase profits?
Depreciation charges
Reduction in provision for doubtful debts
Undervalued closing stock
Returns inwards
Correct answer is B
The provision for doubtful debts is the estimated amount of bad debt that will arise from accounts receivable (credit sales) that have been issued but not yet collected.
If a business estimated 20,000 as bad debts, a reduction to a lesser amount means the business will make more money from sales, which amounts to higher profits.
Sales and purchases ledger are used in a business to keep records of?
The owner's capital and cash transactions
Accounts of individual customers and suppliers
Current assets and fixed assets
Current liabilities and long term liabilities
Correct answer is B
No explanation has been provided for this answer.
Trade creditors have been paid by N420
Trade creditors are owed N420
Goods returned to trade creditors amounted to N420
Total supplies from trade creditors amounted to N420
Correct answer is A
The purchase ledger control account is part of the balance sheet and shows at any given time how much you owe to your suppliers. It is credited if its balance increases & debited if its balance decreases.
The current assets less current liabilities is
Working capital
Capital employed
Fluctuating capital
Fixed capital
Correct answer is A
The working capital in simple terms is the money used in the day-to-day running of the business.
It is the difference between a company's current assets—such as cash, accounts receivable, inventories of raw materials, and finished goods—and its current liabilities, such as accounts payable and debts.