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.
A proprietor withdraws cash from the business for private use, he
Credits cash account and debits bank account
Credits cash account and debits drawing A/C
Debits cash account and credits drawings account
Debits bank account and credits drawings account
Correct answer is B
When a proprietor withdraw cash for private use, himself or owner's use, it is regarded as drawings.
The account involve is cash and drawings account. Therefore, the cash account gives while the drawings account receives.
Bought motor vehicle ₦60 paying by cheque. The effect of the transaction will be
Increase in assets of motor vehicle account
Decrease in assets of motor vehicle account
Increase in assets of bank account
Increase in liabilities of bank account
Correct answer is A
The motor vehicle account is the receiver while bank account is giving out. Therefore, there will be an increase in motor account and a decrease in bank account.
Majority of commercial transactions are termed credit transactions, which means
The buyers pay immediately for goods bought
Settlement is deferred to a future date
No account will be opened
Item of expenditure increases
Correct answer is B
In credit transactions, the transfer of ownership takes place before payment to the supplier i.e settlement is at a future safe.
One of these is not a similarity between Joint Venture and Partnership.
AIM is profit making
It is for a specific venture
Involves two people
Have rights and duties
Correct answer is B
Joint venture is for a specific venture while partnership is for a perpetual succession.
FIFO
LIFO
SAP
WAP
Correct answer is D
Weighted Average Price (WAP): Under this method issues are priced at a weighted average price which is obtained by dividing the value by the unit of stock in hand. Issues will continue to be priced at this price until a new batch is received when a new weighted Average price is calculated.