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.

221.

An amount of Le2000 received from a customer, Koffi has been credited to another customer, Kofigo's account. This is an error of?

A.

Principle

B.

Commission

C.

Original entry

D.

Complete reversal

Correct answer is B

Error of commission is an error that occurs when doing something wrong, such as including a wrong amount or including an amount in the wrong place.

For example, money that has been received from a customer is credited properly to the accounts receivable account, but to the wrong customer.

 

223.

Tei Ltd offered 1,560 units of magazines at N60 each. Trade discount is 10%  and cash discount is 10% within 30 days and 5% within 60 days.

The cash discount allowed on the 50th day is?

A.

9,360

B.

8,424

C.

4,680

D.

4,212

Correct answer is C

Unit cost = 60
Quantity = 1560
60 x 1560 = 93600

Cash discount = 5/100 x 93600 = 4680

224.

A reduction n price to encourage prompt payment is........

A.

Trade discount

B.

Quantity discount

C.

Cash discount

D.

Seasonal discount

Correct answer is C

Cash discounts refer to an incentive that a seller offers to a buyer in return for paying a bill before the scheduled due date. The seller would typically reduce a certain amount from the total amount owed to encourage the buyer to make payment faster.

 

225.

Entries in the purchase journal are transferred to the .............

A.

Receivable ledger

B.

Payable ledger

C.

General ledger

D.

Private ledger

Correct answer is B

The purchase journal records all credit purchases. All the entries are then moved to the accounts payable. 

Accounts payable are amounts due to vendors or suppliers for goods or services received that have not yet been paid for.