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.

26.

\(\begin{array}{c|c} & Le \\ \hline \\ \text{Fines} & 20,000\\ \text{Market rates} & 120,000\\ \text{Salaries} & 60,000\\ \text{Maintenance of vehicles} & 49,000 \\ \text{Park collections} & 100,000\end{array}\)

The balance at the end of the period is

Le 270,000

Le 139, 000

Le 131,000

Le 120,000

View answer & explanation

Correct answer is C

No explanation has been provided for this answer.

27.

BALANCE SHEET AS AT 31st DECEMBER, 2010 \(\begin{array}{c|c} & ₦ & & ₦ \\ \hline \text{Capital}& 40,000 & \text{Freehold premises} & 50,000\\ \text{Less: Net loss} & \frac{5,000}{35,000} & \text{Stock} & 3,000\\ \text{Less: Drawings} & \frac{2,000}{33,000} & \text{Debtors} & 4,000\\ \text{Long term loan} & \frac{20,000}{53,000} & \text{Cash at bank} & 6,500\\ \text{Creditors} & 8,000\\ \text{Accrued expenses} & \frac{4,000}{65,000} & \text{Cash in hand} & 1,500\\ & & & \text{Total 65,000}\end{array}\)

Working capital ratio is

5 : 4

5 : 3

4 : 5

1 : 2

View answer & explanation

Correct answer is D

The working capital ratio is calculated simply by dividing total current assets by total current liabilities.

Current assets = 3000 + 4000 +6500 + 1500 = 15000

Current liabilities = 8000 + 4000 = 12000

15000/12000 = 1.25

28.

The amount of working capital is

₦11,000

₦7,000

₦4,000

₦3,000

View answer & explanation

Correct answer is D

Working capital = current assets - current liabilities

Current assets= 3000 + 4000 + 6500 + 1500 = 15000

current liabilities= 8000 + 4000 = 12000

15000 - 12000 = 3000

29.

\(\begin{array}{c|c} & Le\\ \hline \text{Construction and hospital wards} & 300,000\\ \text{purchase of hospital beds} & 40,000 \\ \text{salaries and wages}& 80,000\\ \text{Purchase of drugs} & 55,000\\ \text{purchases of x-ray machine} & 150,000\end{array}\)

The amount of recurrent expenditure was

Le 245,000

Le 175,000

Le 135,000

Le 80,000

View answer & explanation

Correct answer is C

Recurrent expenditure on goods and services is expenditure, which does not result in the creation or acquisition of fixed assets (new or second-hand). It consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation).

80000 + 55000 = 135000

30.

Capital expenditure for the year was

Le 545,000

Le 490,000

Le 450,000

Le 300,000

View answer & explanation

Correct answer is B

Capital expenditures; money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.

300,000 + 40,000 + 150,000 = 490,000

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