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.

496.

Use the following information to answer this question

Year
1991
1992
1993
1994
14,000
24,000
10,000
16,000

It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is

A.

32,000

B.

16,000

C.

30,000

D.

64,000

Correct answer is B

 

Average profit = 14,000 + 24,000 + 10,000 + 16,000
                         4

 

= 64,000
   4
= ₦16,000

 

497.

Shares that are offered to existing shareholders at a price is called

A.

Par

B.

Premium

C.

Right issue

D.

Bonus issue

Correct answer is C

Right issue are offered to existing shareholders in a company.

498.

An ordinary share of ₦100 was issued at ₦80. The share was issued at

A.

Premium

B.

Par

C.

Discount

D.

Loss

Correct answer is C

Share issued at discount is a situation whereby shares are quoted below the nominal value.

 

499.


Opening stock
Purchases
Sales
Closing Stocks

20,000
70,000
100,000
15,000

What was the gross profit?

A.

₦35,000

B.

₦75,000

C.

₦50,000

D.

₦25,000

Correct answer is D

Gross profit = sales - cost of goods sold
100,000 - 75,000
⇒ ₦25,000

500.

Opening stock
Department
A
B

100
800
Purchases:
A
B
Wages of workers
Salaries

1500
2000
50
100
Sales
A
B

3000
5000

Expenses are to be shared in the ratio of sales.

What was the cost of goods sold?

A.

₦25,000

B.

₦35,000

C.

₦50,000

D.

₦75,000

Correct answer is D

Cost of goods sold = Opening stock + Purchases - closing stocks
20,000 + 70,000 - 15,000
⇒ ₦75,000