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.

21.

The allocation of funds from treasury to accounting heads in public sector is

A.

Float

B.

Vote

C.

Virement

D.

Budget

Correct answer is B

When fund is allocated to a head, it is referred to as vote. Vote is the amount for individual items on a government budget.

 

22.

A business should not lay claim to any profit before it is earned. This is in accordance with the

A.

Going concern concept

B.

Prudence concept

C.

Dual aspect concept

D.

Consistency concept

Correct answer is B

Prudence also known as conservatism. This principles state that the accountant should not anticipate income and will normally take the figure that will understate rather than overstate the profit.

23.

The purchase day book is used to record

A.

Purchases returns

B.

Cash purchase

C.

Total purchases

D.

Credit purchase

Correct answer is D

The purchase day book is the book of original entry for recording all of the goods purchased on credit from suppliers. It is sometimes called purchases journal.

 

24.

A partnership is formed by

A.

Two or more individuals

B.

Only one person

C.

Two individuals only

D.

Two or more companies

Correct answer is A

Section 1 of the Partnership act 1890 defined partnership " as a relationship which subsists between two to twenty people carrying on a business in common with a view of profit making and the sharing exercise being confined to only members in the partnership deed".

 

25.

Beauty started business with ₦40,000, made a profit of ₦50,000 and ended the year with ₦70,000 capital. What would have accounted for the closing capital?

A.

Drawings of ₦20,000 was made

B.

The opening capital of ₦40,000 was invested

C.

Beauty was paid a salary of ₦90,000

D.

Cash shortage of ₦30,000 was recorded

Correct answer is C

The calculation for closing capital is as follows:

Closing Capital = Initial Capital + Profit + Salary - Drawings - Cash Shortage

Closing Capital = ₦40,000 + ₦50,000 + ₦40,000 - ₦20,000 - ₦30,000

Closing Capital = ₦140,000 - ₦20,000 - ₦30,000

Closing Capital = ₦140,000 - ₦50,000

Closing Capital = ₦90,000

Therefore, the closing capital for Beauty would be ₦90,000.

Hence, the correct answer is ₦90,000.